Actual Findings on Internet Advertising

Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:

- Consumer brands spend only a fraction of their advertising budget on on-line advertising.

- Technology companies spend five times more on advertising in the WWW.

- While banner campaigns are still popular, there is no standardized solution for on-line advertising.

- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.

- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.

At the moment three dominant models are used for Internet advertising:

Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.

Micro Sites: Content sites or networks host small clusters of brand pages.

Banner Campaigns: Those include other forms of Web advertising like sponsorships.

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Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998

Rank 1998

 PR Firm

 Advertising Agency Related

 1998 Net Fees (in U.S. $)

 1997 - 1998 % Change
1

 Burson-Marsteller

 yes

 258,417,000

 4.2
2

 Hill and Knowlton

 yes

 206,000,000

 8.9
3

 Porter Novelli Int.

 yes

 183,050,000

 23.6
4

 Shandwick

 yes

 170,300,000

 7.3
5

 Fleishman-Hillard

 yes

 160,692,000

 19.1.
6

 Edelman PR Worldwide

 no

 157,840,530

 18.1
7

 Ketchum

 yes

 125,248,000

 29.6
8

 BSMG Worldwide

 yes

 118,963,000

 93.0
9

 Weber PR Worldwide

 yes

 83,166,000

 36.2
10

 GCI/APCO

 yes

 79,667,957

 28.4



With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

 Buyer

 Buyers Industry

 Estimated Purchase Price (in millions of U.S. $)
International PR

 Interpublic Group of Cos.

 Advertising

 230
Fleishman-Hillard

 Omicom Group

 Advertising

 85
Ketchum

 Omnicom Group

 Advertising

 60
Dewe Rogerson

 Incepta

 Advertising

 40
Financial Rel. Bd.

 BSMG/TN

 Public Relations

 33
Weber PR

 Interpublic Group of Cos.

 Advertising

 15
Alexander

 WPP Group

 Advertising

 15
Charles Barker

 BSMG/TN

 Public Relations

 15


Source: Odwyerpr.com.

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Microsoft Network

Microsoft Network is the online service from Microsoft Corporation. Although offering direct access to the Internet, mainly proprietary content for entertainment purposes is offered. Best viewed with Microsoft's Internet Explorer.

http://www.msn.com

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Society for Worldwide Interbank Financial Telecommunication (SWIFT)

Founded in 1973 by 239 banks from 15 countries, SWIFT is responsible for maintaining the world's most important network dedicated to financial transaction processing.
Although facing competition from smart cards, e.g., SWIFT can rely on an increasing clientèle. In September 1999 SWIFT served 6,710 live users in 189 countries.

http://www.swift.com

http://www.swift.com/
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