Advertising by dotcom companies in the US on traditional media, including television and newspapers, surpassed the $1 billion mark for the first nine months of 1999, according to new research.
The research, conducted by Competitive Media Reporting, underlines the growing importance of traditional advertising to dotcom companies as they try to make consumers aware of their brand names.
CMR said dotcom companies spent $1.37 billion on advertising in traditional media between January and September. This is up from $349 million a year ago.
However, the last quarter of 1999 is expected to push dotcom ad spend passed the $2 billion mark. In 1998 dotcom advertisers spent $649.2 million during the entire year.
The largest slice of dotcom ad spend, $278.3 million, went to US network television, with magazines picking $265.2. Cable television attracted $202 million followed by local television at $166.9 million and local radio at $154.6 million. National newspapers picked up $148.7 million, while other newspapers got $69.4 million.
A spokesman for Competitive Media Reporting, said: "This is surely one of the fastest-growing industries, if not the fastest, we have ever seen. Growth easily surpasses the doubling of spending on prescription drug ads that tracked for 1996 after the government relaxed regulations on that type of advertising."
The biggest dotcom ad spender was the online stock trading firm, Etrade, which spent $89 million for the first nine months of the year. The second biggest spend was Value America Store at $46.5 million.
Another online brokerage firm, Charles Schwab, was third at $40.9 million, followed by the internet service provider Snap.com at $38.1.