DoubleClick and Nielsen//NetRatings Release Inaugural Year in
Online Advertising Report
Report Combines Ad Serving Data with Category Spend; Compares
Online and Offline Media Trends
New York, NY, 3/1/2004 - DoubleClick Inc. (Nasdaq: DCLK), the
leading provider of marketing tools for advertisers, direct
marketers and web publishers, and Nielsen//NetRatings today
released an inaugural joint Year in Online
Advertising Report for 2003. For
the report, DoubleClick augmented its own ad serving data with data
from Nielsen Monitor-Plus (measuring offline media spending) and
Nielsen//NetRatings AdRelevance (measuring online spending) in
order to gain a complete picture of the relative growth of ad
spending both in aggregate and by key industry segments. 1
"All indicators support that 2003 was the year online
advertising rebounded," said Doug
Knopper, Senior Vice President and General Manager, Advertiser
& Publisher Solutions at DoubleClick. "The online medium
outpaced certain categories of traditional media in terms of
spending growth; volume is up across categories and Fortune 500
companies renewed their commitment to interactive marketing with
steady investment. In terms of driving the space forward, search
and rich media are the strongest contenders, and the industry is
following those performance metrics closely and with great
optimism.
Laptop Battery "Last year marked the first time that large traditional
advertisers began to spend more online," said Charles Buchwalter,
vice president of client analytics, Nielsen//NetRatings. "While the
online medium is still relatively young, the growth of broadband
paints a promising picture for online ads, as advertisers recognize
that
people are spending more time
online and consuming more online media.
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Thinkpad ONLINE AD VOLUME REBOUNDING
Nielsen//NetRatings AdRelevance reported that online
advertising (not including search)
rose to highest levels of the year with 280 billion impressions in
Q4. DoubleClick data, which represents the top publishers,
marketers and advertising agencies that use third party ad serving,
showed high levels of growth: from Q1 to Q4, DoubleClick volume was
up 49%. Finally, the Internet Advertising Bureau (IAB) reported
that ad spending grew 20% year-over-year to $7.2 billion.
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Microsoft According to Nielsen Monitor Plus data and IAB numbers for Q1
2003 vs. Q1 2002, online spending growth (+11.3%) outpaced spot TV
(+3%) and outdoor (+5.2%), as well as network TV (-12.1 %). Growth
slowed for online by Q3 03 to +5.9% over Q3 02, but still outpaced
TV growth (+3.5%).
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Laptop Computers TOP USERS BY CATEGORY
Automotive, a category which started with a small base of spend,
had the largest growth on an impression basis year-over-year
(+74.9%). Telecommunications was a big focus for online advertising
as the FCC portability ruling inspired a wealth of service
offerings. It came in third, at 31.2% growth, year-over-year, on an
impression basis. Retail is another category dramatically impacted
by online and 8.7% of total spend is devoted to the medium. However
it was the only category to show a dramatic decrease in
impressions.
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Laptop Computer Online now accounts for 48.5% of business proposition and
employment recruiting ad spend. In travel, 15.4% of all spending is
now online. Business and consumer services (which includes credit
cards and financial services) devoted more advertising to online
than to newspaper, magazines or radio. This category was clearly
driven by the movement towards self-directed investing, online
banking and low interest rates. In
addition, a very useful indicator of the
health of online media is growth
in usage by Fortune 500 companies. Their usage was relatively
stable during the year at an average of 28.5% of all online
advertising.
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Desktop Computer TOP USERS BY MARKETERS
While the top 25 marketers in 2002 was heavily weighted towards
the surviving dot-coms: Amazon.com, AOL, eDiets, X-10 Wireless,
eBay, etc., the top 25 list of 2003 paints a different picture.
X-10 has dropped off entirely, while others have decreased
spending. Strong online companies like eBay and Amazon.com have
likely tapered off banner advertising because they have already
built their brands. The telecom and financial services resurgence
that drove increased online marketing investment in those sectors
was reflected by SBC (+168.1% year over year), AT&T Wireless
(+21.3%) and Verizon (+5.6%) all made the top 25 list as did
Ameritrade (+22.8%), BankOne (11.9%), Scottrade (+26.7%),
Ameriquest (+352.7%), Citigroup (+3.8%) and LowerMyBills.com
(+775%).
Notebooks THE YEAR OF RICH MEDIABUT WHAT ABOUT THE POP-UP?
Nielsen//NetRatings AdRelevance estimates 223% rich media growth
Q1 - Q4 to 17.4% of all ads. Within the DoubleClicks system, rich
media grew to nearly 40% (39.7%) of all ads served by Q4.2 In terms
of performance, DoubleClick's new Audience Interaction Metrics,
which measure interaction with rich media ads served through DART
MotifSM, showed initial strong results. In Q4, the average amount
of time a Motif ad displayed in a user's browser was 41.9 seconds
and the average amount of time a user interacted with the ad was
21.9 seconds. Figures like these will help marketers make
comparisons with broadcast media where a typical unit can engage a
consumer for 30 seconds.
Lenovo The Fortune 500 voted in favor of rich media during the year,
accounting for 45.5% of all rich media advertising in Q1 and 38.8%
in Q4. Cell phones led this category: SBC at 2.2 billion
impressions, followed by AT&T Wireless at 1.9 billion
impressions.
Hard Drive Pop-ups and pop-unders, which DoubleClick categorizes as a
subset of rich media, are perhaps the most controversial form of
online advertising. Not surprisingly, their usage did not grow
dramatically in 2003. Within DoubleClicks system they account for
under two percent of all ads served, and AdRelevance shows them as
fluctuating between five and seven percent of the total market. The
big brand advertisers however continue to shy away from them;
Fortune 500 share of pop-up advertising is lower than industry
average at 3% of all Fortune 500 advertising.
Travelstar SEARCH: CATEGORY DRIVEN
The other growth story of 2003 was search. However, while search
is clearly "hot" among online advertisers, it should be noted that
its impact is category relevant. An annual survey sponsored by
DoubleClick (Touchpoints II, March 2004) of over 2,000 consumers
who have made purchases of particular types of products in the last
six months, showed that their usage of search varied by product
type. Of those who visited websites to learn about products and
services, 58% of those searching for consumer electronics used a
search engine and 53% of those looking for prescription drugs did
so. But for products like telecommunications, only 38% did so. For
credit cards and banking, only 20% did so. In
categories with lower usage of search, consumers were more likely
to guess URLs, probably because these categories have more
established brand or product names.
Gateway METHODOLOGY
The full Year in Online Advertising Report, including methodology,
may be requested through DoubleClick public relations at
jconnorton@doubleclick.net.
Laptop Parts About DoubleClick Inc.
DoubleClick is the leading provider of tools for advertisers,
direct marketers and web publishers to plan, execute and analyze
their marketing programs. DoubleClick's online advertising, email
marketing and database marketing solutions help clients yield the
highest return on their marketing dollar. In addition, the
company's marketing analytics tools help clients measure
performance within and across channels. DoubleClick Inc. has global
headquarters in New York City and maintains 19 offices around the
world.
Software About Nielsen//NetRatings
Nielsen//NetRatings is the global standard for Internet audience
measurement and analysis and is the industry's premier source for
online advertising intelligence with its NetView, AdRelevance,
@Plan, WebRF, LemonAd, MegaPanel and SiteCensus services. Covering
70 percent of the world's Internet usage, the Nielsen//NetRatings
services offer syndicated Internet and digital media research
reports and custom-tailored data to help companies gain valuable
insight into their business. For more information, please visit
www.nielsen-netratings.com.
Hard Drives 1 As the universe of measured media here does not include online
search, direct mail, yellow pages and point of purchase displays,
the figures may not be comparable to other overall spending
data.
Electronics 2 The discrepancy between Nielsen//NetRatings AdRelevance and
DoubleClick relates to a lack of consensus on what constitutes rich
media. Nielsen breaks out ads with forms and above and
behind-the-page formats separately. DoubleClicks definition relates
to how ads appear in their system and anything that is not a static
image (GTE, JPEG) is in some way rich media.
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