Press Releases

2005 Press

JUPITERRESEARCH FORECASTS LOCAL ONLINE AD SPENDING TO REACH $5.3 BILLION IN 2010; CLASSIFIEDS CONTINUE TO DOMINATE TOTAL

(New York, NY - September 21, 2005) - JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), today announced that U.S. spending for online local advertising will grow 26% to $3.2 billion in 2005, and then 11% compounded annually, to $5.3 billion in 2010. The newly released report "U.S. Local Online Advertising Forecast, 2005 to 2010" points out that classifieds will continue to comprise almost 70% of that total throughout the forecast period.

"Outside of classifieds, local ad spending online remains relatively immature," said David Card, Vice President and Senior Analyst at JupiterResearch. "For now, online publishers and networks will find better opportunities servicing national advertisers that are aiming at local audiences than they will servicing true local businesses," added Card. In 2004, local spending drove only 5% of online display advertising and 16% of paid search listings.

The JupiterResearch report finds that it will be an uphill battle to sell online display or search ads to local business services. "Local, service-based companies will lead the second wave of online local spending," stated JupiterResearch Senior Analyst Gary Stein. "But only if they are offered ad models that make sense for them. Pay-per-click doesn't make a lot of sense if you donŐt value your site as a source of leads. Pay-per-call technologies (where the advertiser pays for a call driven from a search ad, not a click) have promise, but face uncertain growth," added Stein. In a JupiterResearch/Virtus executive survey of advertisers who typically use Yellow Pages, about 30% of the executives surveyed were interested in pay-per-call, but over 40% said they were "very uninterested."

The complete findings of the JupiterResearch report are immediately available to JupiterResearch clients at www.jupiterresearch.com. For more information on JupiterResearch's Entertainment & Media research service please contact Kieran Kelly, Vice President of Global Sales and Client Service at 1-800-481-1212 or [email protected].

About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading global provider of original information, images, research and events for information technology, business and creative professionals. Jupitermedia includes JupiterImages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like Brand X, FoodPix, Botanica, Nonstock, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Goodshoot, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, the online media division of Jupitermedia which operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 18 million users and generate over 300 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets.

"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 competes; the unpredictability of Jupitermedia's future revenues, expenses, cash flows and stock price; Jupitermedia's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia's dependence on a limited number of advertisers; and Jupitermedia's ability to protect its intellectual property. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia assumes no obligation to update the forward-looking statements after the date hereof.

CONTACT:

Lisa DiGiacomo
Marketing and Public Relations Associate
212-547-7938
[email protected]

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