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Advertisement on the Internet

Online advertising spendings:

$29.9 million - Beginning of 1996 (first quarter)
$266.9 million - Year-end of 1996

$66 billion in traditional media (Television, Radio, Billboards, Newspapers, and Magazines)

Main reason that advertisers don't go online is the mediums lack of a standard to measure how many people are using it (measuring consumer usage and Internet advertising effect). Ironically, consumers use of Internet is one of the easiest things to track.

Correct combination of site look, editorial content and brand name can generate significant revenue.

Well designed brand site can cost $3 million a year to set up and maintain. A small advertisement banner on a well-visited site costs about $50 000 a month (excluding producing costs).

Most successful Internet sites for advertising today appeal those with the typical Web demographics: 18- to 45-year old affluent, well-educated men.

Most successful ads are for products and services that consumers typically want a lot of information about: travel, automobiles, sports and financial services - as well as things related to sex.

Playboy's Web site - one of the few that make money
Lisa Natale (Vice President of Internet Sales) thought most advertising would come from existing advertisers in the magazine - but to date the bulk of advertisers are ones that offer services endemic to the Web.



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