Kids Click Through to More Banner Ads, Teens Click Less, According to Nielsen//NetRatings

Business Wire, August 15, 2000

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NEW YORK--(BUSINESS WIRE)--Aug. 15, 2000

Nielsen//NetRatings, the Internet audience measurement service from Nielsen Media Research, ACNielsen eRatings.com and NetRatings, Inc. (Nasdaq:NTRT), today reported the first findings of the Internet Advertising Strategies service, which was launched today. The research revealed that kids click on Web ads more than any other age group, while teens are among the lowest clicking Internet users. Understanding click rates by demographic groups enables marketers to better understand how to target ads to their audience.

The Nielsen//NetRatings Internet Advertising Strategies is a new analytical service that delivers the industry's most effective global measurement system to accurately gauge advertising trends and usage activity. Please refer to separate press release for further information. The first report from the Nielsen//NetRatings Internet Advertising Strategies reveals that kids ages 2-11 are clicking at a consistently higher rate than any other age group. In June 2000, kids averaged a click rate of 0.87 percent (see Graph 1). The average clickrate for the overall Internet audience for June 2000 was 0.45 percent, based on Nielsen//NetRatings data.

Table 1 shows the top 10 ads clicked on by kids ages 2-11 in June. The No. 1 ad clicked on was by Trident Gum, for its "Adventures of Supertooth" game. Another consumer packaged goods advertiser, Nestle Ice Cream, showed up in the top 10 for its "Stamps and Stomps" online game campaign. In the media space, another strong advertiser that is effectively reaching this market is Cartoon Network, which had three separate creatives -- "Powerpuff Girls", "Scooby Doo", and "Sailor Moon" -- hit the top 10.

"The strategy of leveraging strong offline brand loyalty with interactive elements online, such as game playing or contests, is working to reach kids," said Kate Maddox, director of Internet advertising strategies at NetRatings. "The challenge will be to keep reaching this short-attention-span audience with new and creative advertising to break out of the clutter."

"Although the click rate is higher for kids, it continues to decline at a steep rate, meaning advertisers will have to know what's working and what's not when it comes to reaching this segment."

Table 1

Top 10 Ads Clicked On by Kids 2-11 Years Old, June 2000 (At-Home Users)

Advertiser                             Click Rate(%)  Unique Audience

Trident GUM                                 9.76          164,748
Nintendo                                    6.97          103,861
Bonzi.com                                   6.33          249,453
CartoonNetwork.com (Powerpuff Girls)        6.31          107,711
Nestle Ice Cream                            5.80          146,716
CartoonNetwork.com (Scooby Doo)             5.61           94,200
Cartoon Network.com (Sailor Moon)           5.18          157,191
TreeLoot.com                                5.10          103,694
Uproar.com                                  4.86          130,072
FamilyEducation.com                         4.44           94,630

Source: Nielsen//NetRatings, June 2000

Jaded Teens Click Less

Click rates for the teenage audience are well below rates for other age groups, according to the Nielsen//NetRatings report. The average click rate for the 12-17 year old group was 0.19 percent in June 2000. The click rate for the 18-20 year old group was even lower at 0.11 percent for the same time period.

"It's no secret disaffected teens are a tough audience for marketers to crack. Jaded by advertising, they've historically clicked at a lower rate than the average Internet audience," said Maddox.

Despite their low average click rate, teens are clicking on ads that are highly targeted to their interests, such as ads that offer free goods and useful information.

The No. 1 ad clicked on by teens -- garnering a 20.35 percent click rate -- was by Eastpak, featuring a contest for a free backpack stuffed with prizes (see Table 2). Other effective ads using prizes or games were by Cartoon Network (a "Sailor Moon" game in an ad), Alloy.com (a $500 shopping spree) and PrizeCentral (all kinds of free stuff). Beyond looking for freebies, teens are also clicking on ads with useful information, such as "Potfacts," a campaign produced by the White House Office of National Drug Control Policy, and Apartments.com, which offers capabilities to search by state and to view floorplans.

"The message to marketers is: you can still reach teens, even if they're harder to attract, by creating campaigns that meet their specialized needs. The more interactive, and the more highly targeted to their interests, the better," said Maddox.

Table 2

Top 10 Ads Clicked On by Teens 12-17 Years Old, June 2000 (At-Home Users)

Advertiser                             Click Rate(%)  Unique Audience

Eastpak                                     20.35          93,339
CartoonNetwork                              12.73          97,619
MailBits.com                                 7.66         101,804
Office of National Drug Control Policy       6.83         128,111
PrizeCentral.com                             6.74         108,429
Alloy.com                                    6.70         102,378
Napster.com                                  6.42          94,845
Apartments.com                               4.46         186,438
e-crush.com                                  4.43         110,820
NameZero.com                                 4.16         111,322