Sunday - August 20, 2000

B to B Advertising is Fastest Growing Segment for Online Publishers

A new collaborative report from Jupiter Communications, Inc., and Media Metrix, Inc. reveals that business-to-business (B-to-B) online advertising is the fastest growing and one of the most financially rewarding segments for online publishers. The joint report combines Jupiter analysts' insight with Media Metrix's online ad measurement data and provides marketers and online publishers with insight into ways to leverage the growing US B-to-B online ad market.

Data from AdRelevance, Media Metrix' online ad tracking division, indicates that the B-to-B industry is the fastest growing online ad segment in mainstream online media. The segment has grown to 5.6 billion online ad impressions in second quarter 2000 up from one billion impressions in third quarter 1999. And the growth in the B-to-B market outpaces the industry average, according to the data. In fourth quarter 1999, the growth rate of B-to-B online ad spending was just below that of the industry average at 89 percent; however, it easily surpassed the industry average with 94 percent growth in first quarter 2000. Jupiter analysts estimate that based in its current growth rate, the B-to-B market will grow to $3 billion by 2005, representing 18 percent of online advertising spending on mainstream online media.

AdRelevance data reveals that 80 percent of business-to-business (B-to-B) online ad impressions are hosted on 25 publisher sites. Compared with more mature markets, such as financial services and retail, where the majority of online advertising impressions are distributed across eight or ten publisher sites, respectively, B-to-B online advertising is highly fragmented. Jupiter analysts believe that the B-to-B market will only become more fragmented. Publishers should continue to devote resources that target B-to-B ad dollars, despite their fears that fragmentation could equal lower revenue potential. In fact, top publishers, as ranked by B-to-B advertising impressions, each earn on average $5 million quarterly from this growing market, compared with only $500,000 per top publishers in the automotive industry.

"Publishers must continue to spend the time and money to target B-to-B online advertisers," said Jean-Gabriel Henry, an analyst with Jupiter. "Not only is the B-to-B segment the fastest growing today, but it is also one of the most financially rewarding for the top sites in the category. We believe that the B-to-B market will maintain a faster growth rate in online advertising than the overall industry for the next three years."

The Jupiter and Media Metrix Online Advertising Report: Measuring and Analyzing the B-to-B Market, is the third joint issue by the two companies that combines Media Metrix industry standard data and Jupiter forward-thinking, prescriptive analysis. And, it is the first of many B-to-B efforts combining deep primary and proprietary data and analysis that the two companies can offer.

In June, Jupiter and Media Metrix announced that they would merge to create the global leader in Internet information services. The combined company will deliver innovative and comprehensive Internet measurement, analysis, events, and advice to provide businesses with unmatched global resources for understanding and profiting from the Internet.

"We're very excited at what we can offer B-to-B companies when we weave the depth of our data with Jupiter's analytic insight," said Mary Ann Packo, president of Media Metrix and co-COO of the soon-to-be formed Jupiter Media Metrix. "The combination of measured user behavior, tracked online ad activity, and Jupiter analyst expertise helps businesses in all industries better understand and anticipate changes in the online marketplace."

"The exciting aspect about this report is that it is just the first of what we believe will be many efforts to show our collective depth of knowledge in the B-to-B space," said Gene DeRose, CEO of Jupiter Communications, and president and vice chairman of the soon-to-be formed Jupiter Media Metrix. "Media Metrix provides the most accurate and timely Digital Media measurement data and Jupiter delivers comprehensive analysis, forecasts, and insight into the B-to-B sector, This is a great example of the type of deep, industry-focused deliverables our combined efforts can produce to help Internet executives make the most informed business decisions they can."

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