Banner advertising to dramatically decline

- Banner ads, which accounted for more than half of all advertising dollars on the internet in 1998, will decrease in importance to only 26 per cent of web advertising by 2001, according to a new report.

- Banner ads, which accounted for more than half of all advertising dollars on the internet in 1998, will decrease in importance to only 26 per cent of web advertising by 2001, according to a new report.

The eAdvertising Report, published by eMarketer, claims that advertising revenue from banner ads, which accounted for around 52 per cent of all online ads last year, will be transferred into sponsorship. Last year, sponsorship claimed 40 per cent of all online advertising spend in the US.

The report says that sponsorship is set to steadily grow and will represent 58% of all online advertising expenditure by 2001.

In addition the report predicts that by 2001, 10% of web ad spend will be placed in some format or technique that has not been conceived of yet. This new model will begin to emerge within the next 18 months and it will siphon off web ad dollars - primarily from banners and interstitials.

Geoffrey Ramsey, statsmaster at eMarketer, said: "Savvy web advertisers will deeply integrate themselves within the content and services offered to targeted customers through exclusive site sponsorships. While conventional thinking and inertia on the part of online advertisers has held this trend back, increasingly companies are breaking out of the banner box."

The eAdvertising Report, consisting of 102 pages and containing 145 charts, is available for $795, at www.emarketer.com/estats/sell_ead.htm. eMarketer is a research firm specialising in reports on the net marketplace.







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