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GENERAL COMMUNITY WEB SITES CAPTURE FASTEST GROWING SECTOR IN ESTIMATED ONLINE REVENUE
2005-9-1 22:23:25
NIELSEN//NETRATINGS

NEW YORK– July 12, 2005 – Nielsen//NetRatings, a global leader in Internet media and market research, today reported June 2005 estimated online advertising revenue and spending from its AdRelevance service. General community Web sites captured the fastest growing sector in estimated online advertising revenue, followed by the categories of health and fitness, business, men’s general interest, and shopping and auctions.

General community Web sites, led by MySpace, made the largest year-over-year leap to $33 million with a 214 percent growth (see Table 1). Health and fitness grew 80 percent in estimated revenue to more than $4.5 million, and business Web sites took in $12.6 million, rising 46 percent as compared to last year. Estimated spending reflects CPM-based online advertising only, and excludes search-based advertising, paid fee services and other online promotions.

“General community sites tend to have a higher level of engagement or interactivity with their users, making the sites very attractive to advertisers,” said Gerry Davidson, senior media analyst, Nielsen//NetRatings.

Table 1. Top Five Genre with Largest Growth in Estimated Revenue, June 2005

Category/Genre

Impressions (000)

Estimated Revenue

Y-O-Y Growth of Estimated Revenue

General Community

11,705,535

$33,516,500

214%

Health & Fitness

592,000

$4,508,400

80%

Business

873,090

$12,557,500

46%

Mens Interests

287,844

$1,611,300

45%

Shopping & Auction

3,314,973

$18,412,900

42%

 

Source: Nielsen//NetRatings AdRelevance, July 2005

Note: Estimated revenue reflects CPM-based advertising only, and excludes search-based advertising, paid fee services, performance-based campaigns, sponsorships, barters, partnership advertising, advertorials, promotions, email and direct response.

Top Online Advertising Categories

The top three categories—financial services Web sites, Web media sites and retail goods and services sites—spent nearly $228 million in online advertising, collectively, making up half of the estimated $456 million spent during June 2005.

The category of financial services, led by LowerMyBills.com, spent an estimated $80 million on online advertising during June 2005, growing 16 percent year-over-year (see Table 2). Web Media, propelled by Monster Worldwide, Inc., spent nearly $75 million dollars, rising 15 percent as compared to last year. Retail goods and services spent $73 million dollars, jumping 77 percent. United Online spent the most in this category.


 

“Our MegaView Financial data shows that 53 percent of the active Internet universe, or 74 million people in the U.S., are currently conducting financial activity online,” said Davidson. “As a result, financial services companies have remained very aggressive in spending the most advertising dollars online as they seek new online customers.”

“Online retailers have boosted their online advertising spending by a significant 77 percent, which is impressive to note because they are also one of the top spenders,” continued Davidson.

Telecommunications and travel rounded out the rankings with $43 million and $33 million, rising 38 percent and 26 percent, respectively. Impressions for the top five categories also secured double-digit growth year-over-year.

Table 2. Top Industries in Estimated Spending, June 2005

Industry

Impressions (000)

Estimated Spending

Y-O-Y Growth of Estimated Spending

Financial Services

17,324,353

$80,256,900

16%

Web Media

18,647,642

$74,743,300

15%

Retail Goods & Services

15,650,888

$72,795,200

77%

Telecommunications

10,198,279

$43,029,700

38%

Travel

5,495,912

$32,985,400

26%

 

Source: Nielsen//NetRatings AdRelevance, July 2005

Note: Estimated spending reflects CPM-based advertising only, and excludes search-based advertising, paid fee services, performance-based campaigns, sponsorships, barters, partnership advertising, advertorials, promotions, email and direct response.

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Nielsen//NetRatings reports June 2005 data for the Top Sites by Parent Company and Top Brands. In addition, Nielsen//NetRatings reveals the Top Advertisers by Company for June 2005.

Nielsen//NetRatings Top 10 Web Sites by Parent Company and Top 10 Web Sites By Brand, June 2005

Table 1. Top 10 Parent Companies,

Table 2. Top 10 Brands

Combined Home & Work

Combined Home & Work

Parent

Unique Audience (000)

Time Per Person (hh:mm:ss)

Brand

Unique Audience (000)

Time Per Person (hh:mm:ss)

 

              1. Microsoft

 

110,591

2:01:31

 

              1. Yahoo!

 

99,137

3:06:06

 

              2. Time Warner

 

102,594

5:05:19

 

              2. Microsoft

 

93,550

0:42:51

 

              3. Yahoo!

 

99,349

3:06:06

 

              3. MSN

 

90,662

1:43:43

 

              4. Google

 

78,521

0:41:03

 

              4. Google

 

76,931

0:39:56

 

              5. eBay

 

53,733

1:59:58

 

              5. AOL

 

74,460

6:22:00

 

              6. United States Government

 

51,418

0:27:48

 

              6. eBay

 

51,098

1:58:07

 

              7. InterActiveCorp

 

42,502

0:19:47

 

              7. MapQuest

 

40,238

0:12:47

 

              8. Amazon

 

39,594

0:24:19

 

              8. Real

 

35,450

0:36:28

 

              9. RealNetworks

 

36,189

0:38:01

 

              9. Amazon

 

35,086

0:21:55

 

              10. Walt Disney Internet Group

 

34,127

0:37:31

 

              10. Weather Channel

 

30,325

0:27:06

 

Example: The data indicates that 34.1 million home and work Internet users visited at least one of the Walt Disney Internet Group-owned sites or launched a Walt Disney Internet Group-owned application during the month, and each person spent, on average, a total of 37 minutes and 31 seconds at one or more of their sites or applications.

A parent company is defined as a consolidation of multiple domains and URLs owned by a single entity. A brand is defined as a consolidation of multiple domains and URLs that has a consistent collection of


 

branded content. Reach is a measure of the unduplicated audience that visits a property. The data is expressed as the percentage of the total universe of Internet users who logged onto the Internet at least once during the reporting period.

Nielsen//NetRatings AdRelevance Top 10 Advertisers, June 2005

Top advertisers, ranked by impressions, are based on data from AdRelevance, Nielsen//NetRatings' advertising research service. An impression is counted as the number of times an ad is rendered for viewing.

Top 10 Advertisers by Company

Advertiser*

Impressions (000)

 

              1. United Online, Inc.

 

3,746,906

 

              2. Vonage Holdings Corp

 

3,549,875

 

              3. Apollo Group, Inc.

 

2,942,556

 

              4. Dell Computer Corporation

 

2,939,513

 

              5. LowerMyBills.com, Inc.

 

2,587,370

 

              6. InterActiveCorp

 

2,539,971

 

              7. Monster Worldwide, Inc.

 

1,702,483

 

              8. Netflix, Inc.

 

1,646,944

 

              9. Microsoft Corporation

 

1,615,679

 

              10. Scottrade, Inc.

 

1,385,743

 

*Impressions reported exclude house ads, which are ads that run on an advertiser’s own Web property.

Example: An estimated 1.4 billion Scottrade, Inc. ads were rendered for viewing during the surfing