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NONE: web advertising revenues

web advertising revenues

garyoz_at_concentric.net
Tue, 10 Sep 1996 09:14:35 -0400 (EDT)

A few comments on estimating advertising revenues on the web. There is the
potential of substantially overstating the actual dollars expended on web
advertisments due to the methodology used. First, it is probably not
appropriate to assume that published rates are the rates charged. Second,
adjustments should be considered for trade-outs or other barter exchanges.
In a trade-out, by assuming that two advertisments represent expenditures at
listed rates, a double counting is essentially created from a no cash
transaction. While these trade-outs do have some value owing to opportunity
cost, they don't go very far in meeting a payroll. I am in the process of
working on an "Advertising on the Web" study for a major market
research/consulting firm. Among the methods I am using is to check SEC
filings for public companies (10-K's and 10-Q's) where actual revenue
dollars must delineated from barter exchanges. I have heard discussions at
some conferences that of the $50-$60 million reported as revenues in 1995,
that maybe half were actually cash transactions. I would be most interested
in any comments or experiences.
Gary Ozanich


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