The Online Advertising Report from Adknowledge has found that for the second year running, CPMs (cost per thousand) are falling. Despite this, the number of Web sites looking for advertisers increased by 38 percent.
Classifieds and shopping transaction Web sites accounted for more than one-third of all new sites established in 1998.
CPM was down 6 percent in 1997. In December 1997, the cost per thousand impressions was $37.21, while in December 1998, that figure was $35.13.
Kevin Wandryk, vice president for marketing at Adknowledge, says this trend is attributable to the increase in the amount of Web space available for advertisers. He expects the trend to continue.
The average ad used was in GIF format; the average size used was 60x486 pixels. HTML and Java were the most popular languages. The study also found that users of Microsoft Explorer were more likely to click on ad banners.
Online branding affects sales
In their study of online brand loyalty, Cyber Dialogue found that one-third of consumers have changed their perception of a brand because of online advertising. More than 50 percent of users followed online shopping with offline purchasing, indicating that online branding campaigns affect offline sales.
The study found that women and ethnic minorities were more likely to purchase offline after exposure to online branding campaigns.
Online advertising can have an effect on TV shopping, direct mail purchases and store traffic, therefore, brand managers should be aware of this when planning brand campaigns. The report recommends that brand managers use traditional media to create brand hype and drive people to the Web site. Source: Nua Internet Surveys (www.nua.ie/surveys/)