Tracker.

The dotcom boom is officially over. As a proportion of total advertising expenditure, dotcom spend fell from an all time high of nine per cent in May to 8.8 per cent in June. This translates to a fall of £3.9 million.

More surprisingly, spend accounted for by the top 20 spenders fell further, by £4.3m to £38.3m. In fact, in June it cost less to reach all but the top two positions in the top 20, a signal perhaps that big budgets are waning.

The decline of big advertisers has had media repercussions. The big media like TV and outdoor seemed to have suffered most, with spend falling by 10 per cent and 25 per cent respectively.

The most striking aspect is how little has changed between May and June.

BT and Freeserve stay in the top two slots. ISPs, financial services and search engines remain the major categories advertised. Fourteen of the top 20 players also stay. Although individual media spends have changed, the ranking of media remains unchanged.

The question is now whether truly new players like Creditweb will survive in such a competitive market now the fervent backing of the venture capitalists has diminished.


 OFFLINE SPEND FOR ONLINE BUSINESSES

The dotcom boom is officially over. As a proportion of total advertising expenditure, dotcom spend fell from an all time high of nine per cent in May to 8.8 per cent in June. This translates to a fall of £3.9 million.

More surprisingly, spend accounted for by the top 20 spenders fell further, by £4.3m to £38.3m. In fact, in June it cost less to reach all but the top two positions in the top 20, a signal perhaps that big budgets are waning.

The decline of big advertisers has had media repercussions. The big media like TV and outdoor seemed to have suffered most, with spend falling by 10 per cent and 25 per cent respectively.

The most striking aspect is how little has changed between May and June.

BT and Freeserve stay in the top two slots. ISPs, financial services and search engines remain the major categories advertised. Fourteen of the top 20 players also stay. Although individual media spends have changed, the ranking of media remains unchanged.

The question is now whether truly new players like Creditweb will survive in such a competitive market now the fervent backing of the venture capitalists has diminished.


 OFFLINE SPEND FOR ONLINE BUSINESSES

July 99- Jun 2000 June expenditure by medium Rank Rank Company June 2000 expend- Rank (£m) June May expenditure iture Jul99- Press Cinema Radio Out- TV 2000 2000 (£m) (£m) Jun 00 door 1 1 BT - Internet Services/ Surftime 5.99 35.83 1 2.33 0.65 0.15 0.22 2.64 2 2 Freeserve 4.64 19.03 2 1.84 0.30 0.43 - 2.07 3 - Cahoot 2.63 2.63 28 0.20 - - 1.09 1.34 4 11 Lycos 2.55 9.44 9 - - 0.01 - 2.54 5 13 AOL 2.19 18.46 4 0.15 - - - 2.04 6 19 Egg 2.17 13.56 5 0.87 0.03 - 0.04 1.22 7 18 Sharepeople 2.16 6.47 7 0.36 - - 0.68 1.11 8 33 Barclays Bank 2.15 3.48 30 - - - - 2.15 9 16 Breathe 1.82 3.27 23 0.28 0.27 0.20 - 1.07 10 36 Open 1.40 7.27 21 0.02 - - 0.88 0.50 11 - Creditweb 1.36 1.36 47 - - - 1.36 - 12 77 Excite 1.24 3.21 32 - - - - 1.24 13 10 Thetrainline (Virgin) 1.21 10.60 6 0.15 - 0.15 0.33 0.59 14 7 Asserta Home 1.20 3.25 24 0.05 - - - 1.15 15 - Aucland - internet auction site 1.07 1.09 55 - - 0.13 - 0.94 16 6 Natwest - online banking 0.99 6.03 11 - - - - 0.99 17 4 BT Cellnet 0.98 11.54 3 0.02 - - - 0.97 18 8 Jungle.com 0.96 7.97 8 0.21 - - 0.08 0.67 19 12 Springboard Internet Services 0.85 3.70 25 - - - - 0.85 20 - Revolver.com - recruitment 0.73 0.73 74 0.73 - - - - TOTAL ONLINE SECTOR 63.48 410.98 20.78 1.67 3.74 8.00 29.28
Guy Abrahams is strategic director of @Carat, the dotcom unit of media-buying and planning specialist Carat

Email: guy_abrahams@carat.co.uk.



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