Web Advertising Survey

According to a survey carried out by Jupiter Communications revenue for the Total World Wide Web reached $66 million in the third quarter of 1996. This is down on quarters one and two but is higher than quarter 4 1995. The total online advertising revenue for 1996 so far is $138 million. Estimates for the rest of 1996 say that revenue is expected to top $300 million.

Ad revenue remained concentrated among the leading Websites for the third quarter, with around 900 Websites offered advertising space, although the top ten shared 64% of all ad revenue.

Netscape was the leading Web publisher for the third quarter, taking around $8.2 million. The main bulk of Netscape’s income came from the five search engines who pay $5 million each a year for featured buttons.

The survey also found that a relatively small number of companies continue to dominate Web ad spending. The top 10 advertisers accounted for 28% of all spending during this period, with Microsoft continuing to be biggest advertising spender in 1996. Another finding of the survey was that Web and computer-related advertisers portion of total spending is beginning to gradually go down, from 63% in quarter one to 54% in quarter three.

In conclusion the survey found that while Web and computer-related accounts for over half of all ad spending, Web advertising may have finally expanded beyond what is essentially a ‘niche’ market.

Jupiter Communications: 001 800 481 1212