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JUPITER RESEARCH REPORTS THAT CLASSIFIED GROWTH AND INCREASED SPENDING BY TRADITIONAL ADVERTISERS WILL DRIVE ONLINE AD GROWTH IN 2003
(New York, NY - October 22, 2002) - Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM) (formerly INT Media Group, Inc.) today reported that while online advertising spending is expected to be flat between 2001 and 2002, 2003 spending is forecast to grow by 10%. Marketers will spend only $5.6 billion on online advertising in 2002, but moderate economic growth in the U.S. and low effective CPM rates will fuel online spending by traditional advertisers in the near term. Online classifieds will also continue to be a bright spot with $1.4 billion in spending in 2003, representing 16% growth over the current year. Other factors driving increased spending are continuing growth in the online population, growing broadband adoption and smarter inventory control among online publishers. According to data released at the Jupiter/IAB Advertising Forum held in New York City on October 21-23, the industry will start to rebound and increase to $14 billion by 2007.The Jupiter Research report, "Online Advertising: Traditional Advertisers, Classifieds Pave Road to Recovery," also reveals that traditional advertisers provide the greatest online ad spending opportunities for ad sellers in the near term. According to the Jupiter Research Category Advertising Model, media currently represents 20% of online ad spending, financial services contribute 17% and computer hardware & software 12%. Within the next five years, Jupiter Research predicts that the automotive industry will spend $1.8 billion on online advertising, while health companies will spend $1 billion and the travel industry over $800 million.
"Given the current economy, online ad spending understandably saw a year of virtually no growth, but the industry is in recovery mode," said Patrick Keane, Vice President and Senior Analyst for Jupiter Research. "Media sellers should turn to traditional advertisers, such as financial services, automotive and computer hardware, for those hard sought ad dollars. The Internet has come to resemble offline media because of the growing number of regular online users. Marketers need to realize the value of this market and begin to evaluate the long-term benefits of online advertising."
Highlights from the latest Jupiter Research online advertising forecast include:
The complete findings of this report are immediately available to Jupiter Research clients online.
Jupiter Research Advertising Report Methodology
The core of Jupiter Research�s products is the perspective and opinion of its research professionals. Jupiter Research analysts are immersed in the industries they cover through ongoing contact with corporate and technology leaders, daily study of trends and events in the online world, and their collective professional experience. Individual analyst perspectives are filtered through rigorous collective debate and deliberation, producing research that reflects the combined sensibilities of Jupiter Research�s entire team. Analyst perspectives are enhanced and refined through Jupiter Research-designed market research. Specialists with Jupiter Research�s Data Research Group assist analysts in the technical development of these tools, such as survey design, sample building, data weighting and data analysis.
About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading provider of global real-time news, information, research and media resources for information technology and Internet industry professionals. Jupitermedia includes the internet.com and EarthWeb.com Network of over 150 Web sites and 200 e-mail newsletters that generate over 200 million page views monthly. Jupitermedia also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 17 business areas and 9 vertical markets. In addition, Jupiter Events include nearly 40 offline conferences and trade shows focused on IT and business-specific topics.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia Corporation competes; the unpredictability of Jupitermedia Corporation's future revenues, expenses, cash flows and stock price; Jupitermedia Corporation's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia Corporation's investments in international and venture fund investments; any material change in Jupitermedia Corporation's intellectual property rights and continued growth and acceptance of the Internet and information technology. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia Corporation's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia Corporation assumes no obligation to update the forward-looking statements after the date hereof.
For information contact:
Mary Ann Boland
Marketing and Public Relations Associate
(212) 547-7939
[email protected]
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All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.internet.com/corporate/press.html.
