Holiday Online Retail Advertising Off to a Slower Start This Year, Despite 250 Percent Increase in Number of Retailers Advertising Online, Reports Adrelevance

Business Wire, Dec 4, 2000

Business/High-Tech Editors

NEW YORK--(BUSINESS WIRE)--Dec. 4, 2000

Retail Online Advertising Expenditures Increase for the First Time

This Season in the Second Week of November

Retail Online Ad Impressions Jump From 4.6 Billion in 1999

to 19 Billion in 2000 Between October and Mid-November

Although holiday online advertising activity this season is nearly four times what it was last year, online advertisers are off to a slower start, according to a report released today by AdRelevance, a Jupiter Media Metrix company (Nasdaq:JMXI) and innovator in next-generation Internet advertising measurement technology.

The AdRelevance Report reveals that while the number of retailers advertising online this season (2313) almost quadrupled from 1999 (657), ad impressions are growing slower, total median impressions per retailer are down and the number of holiday-themed ads in October 2000 is less than half of what it was last year. Jupiter Research, in a separate announcement today, revealed that 64 percent of e-retailers are making online media their top priority for advertising campaigns this season.

Key findings from the latest AdRelevance Holiday 2000 Intelligence Report, which tracks and analyzes all holiday-related online advertising from October 2000 through mid-November 2000, include:

-- Barnesandnoble.com, which ranked six last year among top holiday online
retail advertisers, increased its share of the online ad pie by nine percent --
becoming the second largest online holiday advertiser.

-- Announcing they would start online advertising early this season to
encourage early shoppers, BestBuy.com posted one of the strongest online ad
gains, becoming the number eight advertiser this year. Last year, BestBuy.com
did not run an online campaign until late December.

"Despite high levels of holiday-related online advertising this season, it is becoming clear that retail advertisers are starting a little later this year. The truth of the matter is that seasonal online advertising impressions and expenditures grew faster in 1999 than 2000, through about mid-November," said Charles Buchwalter, vice president of media research for AdRelevance. "It's interesting to note too that during the first six weeks of the fourth quarter, only 14 companies -- out of roughly 2700 retail online advertisers -- made up 50 percent of all retail online ad impressions."

Table A: Growth in Retail Ads and Impressions
         October 1999 vs. October 2000
         Source:  AdRelevance, a Jupiter Media Metrix company

Metric                                1999         2000       %Change
------                                -------      -------    --------
Number of retailers advertising       657          2313        252%
Average number of ads per company     9.3          7.8        -16%
Median ad impressions per company     130,000      23,000     -82%
Number of holiday-themed ads          54           22         -59%

Table B: Top 10 Retail Advertisers in 2000
         October and First Two Weeks of November
         Source:  AdRelevance, a Jupiter Media Metrix company

Rank     Rank      Company                Share 2000   Change in Share
2000     1999                                             vs 1999
----     ----      -------                ----------   ---------------
1          1       Amazon.com                 15%             8%
2          6       barnesandnoble.com         13%             9%
3          2       Ebay                       5%              0%
4          10      Yahoo!                     4%              2%
5          218     RedEnvelope Gifts Online   3%              3%
6          7       Ubid                       3%             -1%
7          36      1-800-FLOWERS.COM          2%              2%
8          N/A     Best Buy                   2%             N/A
9          205     Corbis                     2%              2%
10         281     RadioShack                 2%              1%

Table C: Top 10 Retail Products Promoted in 2000
         October and First Two Weeks of November
         Source:  AdRelevance, a Jupiter Media Metrix company

Rank     Rank      Product Segment            Share    Change in Share
2000     1999                                             vs 1999
----     ----      ---------------            -----    ---------------
1        2         Books, Music & Movies       17%           1%
2        1         Auctions                    12%          -4%
3        11        Gifts & Party Supplies       6%           4%
4        8         Cameras & Electronics        5%           1%
5        5         Computer Hardware            4%          -1%
                    & Accessories
6        3         Sports Travel                3%          -4%
                    & Leisure Gear
7        16        Flowers                      2%           1%
8        7         Software & Video Games       2%          -2%
9        9         Cards                        2%          -1%
10       4         Drugs & Remedies             2%           5%