A new report reveals that B2B online advertising in the United States is the fastest growing and one of the most financially rewarding segments for online publishers.
The joint report by Jupiter Communications and Media Metrix, provides an insight into ways to leverage the growing US B2B online ad market.
Data from AdRelevance, Media Metrix’ online ad tracking division, indicates that the B2B industry is the fastest growing online ad segment in mainstream online media. It has grown to 5.6 billion ad impressions in Q2 this year, up from one billion in Q3 1999.
And the growth outpaces the industry average. In Q4 1999, the rate of B2B online ad spending was just below that of the industry average at 89 percent; however, it easily surpassed the industry average with 94 percent in Q1 2000. Analysts estimate that, based on current growth, the market will grow to $3 billion by 2005, representing 18 percent of online advertising spending on mainstream online media.
AdRelevance data reveals that 80 percent of B2B online ad impressions are hosted on 25 publisher sites. Compared with more mature markets, such as financial services and retail, where the majority of online advertising impressions are distributed across eight or ten publisher sites, respectively, B2B online advertising is highly fragmented.
Analysts believe that the market will only become more fragmented. Publishers should continue to devote resources that target B2B ad dollars, despite their fears that fragmentation could equal lower revenue potential. In fact, top publishers, as ranked by B2B advertising impressions, each earn on average $5 million quarterly from this growing market, compared with only $500,000 per top publishers in the automotive industry.
“Publishers must continue to spend the time and money to target online advertisers,” said Jean-Gabriel Henry, an analyst with Jupiter. “Not only is the B2B segment the fastest growing today, but it is also one of the most financially rewarding for the top sites in the category. We believe that the market will maintain a faster growth rate in online advertising than the overall industry for the next three years.“
The Jupiter and Media Metrix online advertising report, ‘Measuring and Analyzing the B2B Market’, is the third joint issue by the two companies. And, it is the first of many B2B efforts combining deep primary and proprietary data and analysis.