Internet advertising spending increased by almost 87% in the first three quarters of 1998, and direct response marketing companies were among the industries leading the charge, according to a study from New York-based InterMedia Advertising Solutions.
Direct response marketers spent $47.3 million in the first three-quarters of 1998, trailing only computer and software advertisers ($321.6 million) and financial marketers ($59.9 million). But the survey did not identify how the other advertisers had set up their ads – whether they were direct response, or simply display advertising. A company like Autobytel, for instance, could be classified either as a direct response marketing advertiser or an automotive advertiser.
Assuming the narrower definition, direct response marketing advertising increased by almost 274% over the first three quarters of 1997, making it the fourth-fastest growing category. Only medicines and proprietary remedies, with growth of 403%, government organizations, which grew by 352%, and Building materials (313%) grew faster.
Direct response marketing’s growth is all the more impressive in light of the size of the category. None of the other top four categories tallied more than $7.5 million in sales during the first three quarters of 1998. The industries that outspent direct marketing, financial marketers and computers and software, grew by 128% and 64%, respectively.
Direct response marketing accounted for 7% of all Internet advertising spending, ranking third behind computers and software (47.3%) and financial advertisers (8.8%). According to the study, 1.5% of all advertising budgets is devoted to the Internet. Broken out by industry, direct response marketing ranked third, at 2.8%, following only computers and software (17.3%) and business and technology (7.8%).
InterMedia Advertising Solutions was formed to monitor and provide complete industry detail on advertising occurrences and expenditures on the Internet. The information is delivered using the industry standards developed by IAS’ sister company, Competitive Media Reporting.
