Report: Web Advertising Growth Surges to New Heights

Web Sites seeking advertising continues to grow at an enormous rate, according to the latest report released by AdKnowledge.

In its quarterly Online Advertising Report (OAR), AdKnowledge said that in the first quarter alone, the number of sites seeking advertising skyrocketed 27 percent over last quarter.

“That statistic is key,” said Tim Meadows, vice president of marketing at Nielsen//NetRatings. “The viability of the Web as a communications channel continues to grow. By working with just the sites that want advertising, you are able to reach virtually all Web users.”

The report also found that advertising on shopping sites increased by 22 percent over last quarter According to Nielsen//NetRatings, these sites reach 33.3 percent of the overall Web audience.

Also, the average click-per-thousand (CPM) rate is declining, but at a slower rate than in the past. This quarter, it fell only 0.5 percent, compared to 3 percent in Q4 last year and an average of 6 percent for the whole year 1998.

This report is a compilation of Web advertising statistics gathered from the AdKnowledge System. Its database contains more than 1,800 Web sites, which, according to Nielsen//NetRatings, reach 94.1 percent of the overall Web audience.