The softening economy has caused online advertising revenue to fall nearly 8%, to $3.76 billion, for the first half of 2001, said a report by the Interactive Advertising Bureau. Analysts reportedly said the attacks in New York and Washington, DC would cause further declines.
These figures reflect a decline in the overall advertising market. But, measured against media that have similar short advertising buying cycles, online advertising was stronger. Spot TV, for example, declined 14.7% and Sunday newspaper ads lost 10.4%.
The consumer-targeted category continued to be the largest overall segment online at 30%.
Companies prefer the cost-per-thousand manner of buying media online, comprising 50% of all deals. Straight performance contracts remained flat at 10%, said the report.
Most revenue transactions (90%) online were cash based for the first half of the year. Comparatively, for the first half of 2000, 94% were cash based. Package deals remain the same at 1%.
The first half of the year was marked by the many ways companies chose to advertise. Banners were the format of choice at 36%. But this method had declined since 2000, when banner ads were chosen by 51% of companies.
The IAB is a trade organization in New York. PricewaterhouseCoopers' New Media Group conducted the study.
