From Interctive Week Online By Farhan Memon
Hambrecht & Quis, the San Francisco-based investment bank behind Internet successes such as CNET, says advertising on the Internet will reach $300 million in 1996 and $3.8 billion by 2000. The predictions are a dramatic increase from the approximate $12 million that was spent in 1995, according to the firm. Hambrecht & Quist believes that the use of Internet advertising by traditional content and services companies and the use of advertising in traditional media by Internet companies reveals a new trend in migrating specific demographics and advertisers across media.
"Time Warner Inc. and Disney are leveraging the Web to learn more about their customers and expand their relationship with their customers, " said a company spokesman. "Conversely, newly created Internet companies such as Yahoo! and CNET are using traditional media to expand their brand presence and build their viewer base." The Web, says the company, is a unique marketing forum because of its direct and immediate relationship between vendor and customer. "This direct channel bypasses the multitier distribution systems that historically have distanced vendors from their customers and delayed the flow of customer information back to the vendor," the spokesman said, adding, "This information flow is critical in identifying and retaining a target customer and designing effective advertising strategies for the future."
Just as in the traditional media, the ad revenues in new media accrue to those sites that get the largest number of hits. In a related announcement, The Internet Profiles Corp., better known as I/PRO, announced that the WebChat Broadcasting System (WBS) was the most trafficked site of its kind on the World Wide Web. WBS is a large chat and live event center on the Internet. An audit conducted by I/PRO showed that WBS recorded 2.1 million daily page views (ADP) during the month of August. WBS topped other popular sites such as CNET (1.3 million ADP), CNN (1.3 million ADP) and ZD Net (819,000 ADP) at
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