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New eMarketer Report Declares Online Advertising is Alive and Well

NEW YORK--(BUSINESS WIRE)--Aug. 23, 2001--Despite
recast projections from numerous research organizations, the new Online Advertising Report forecasts that online advertising spending is holding its own and will continue to grow steadily over the next several years.

The Online Advertising Report from eMarketer cites data from more than 50 research organizations and consultancies, offering widely divergent projections for online advertising's future.

"The bloom may be off the internet advertising rose, but we are now entering a period of reality rather than hype," says Jonathan Jackson, eMarketer senior analyst. "Surely no one could seriously expect the explosive growth of online
advertising to continue unabated. The good news is that
marketers are responding to the economic challenges with
new techniques and strategies, along with research data to
prove their effectiveness."

eMarketer forecasts online ad spending will reach $7.6 billion by year-end 2001, a relatively modest 7% increase from the $7.1 billion spent in 2000. Despite the recent economic downturn, online advertising expenditures will continue to grow; increasing to $10.3 billion in 2002 and by 2005 will top $23 billion.

"While projections for 2001 spending vary from $4.7 billion to $12.6 billion, based on different definitions and methodologies employed, eMarketer's $7.6 billion reflects the "best fit" with all of the available data, including the current economic realities," states Geoffrey Ramsey, CEO.

Key findings from the Online Advertising Report:

-- Cost-per-thousand (CPM) rates for banner ads continue to

-- Nearly three-quarters of web advertising space goes unsold

-- While more than 99.7% of banner ads are not clicked on,
research suggests that bigger banners are improving branding and direct response metrics

-- Nearly 90% of online ads are direct-response oriented

-- The online medium garners 10% of consumers' daily media
usage, but only 2.9% of media dollars
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