ONLINE-ADS>> What will future online advertising look like?

Harry Wolhandler (hwolhandler_at_ActivMedia.com)
Mon, 18 Aug 1997 15:54:45 -0400

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Hi folks -

As a long-time group follower, I'd like to pose two related questions
that we at ActivMedia have been pondering lately for your opinions:

1. What will online advertising look like two, five and ten years from now?

2. What impact will the 'Net have on the TRADITIONAL economy in
those time frames, and where will those impacts be?

Here's a little background: ActivMedia has been tracking e-commerce
since 1994. We've seen the 'Net grow from a curious information
resource to a vital communication tool, and on become today's
interactive marketplace. In four waves of tracking (most recently
February 1997) we've documented ongoing profitability (30% of all
commercial websites, unchanged over 3 years), rise in sales revenues
(from 35% to 60% of all websites in the last year), new business and
industrial entrants (share of manufacturing doubled in past year), etc.

In our latest study, we're looking beyond the immediate Web community.
For example, last Christmas, offline music sales were down and online
Sales were up. We've found that 'Net-centric companies cut as much as
25% from their business travel budgets. These sorts of findings led us
to wonder:

* When the web comes in through the TV in the living room, what will
happen to banner advertising? What will the Web/TV connection evolve
into? How will today's infant web respond?

* How quickly do people become 'Net shoppers? Is it determined by the
time they've been online or the density of 'Net connectivity in their
local or their professional community?

* When people buy online, are they more or less likely to try new
brands?

* When companies become 'Net centric, what effect does it have on their
offline spending for shipping, travel, printing?

* Are more people starting to telecommute, and what effect is this
having on their own and their companies' spending.

These are questions we've been asking at ActivMedia as we launch
"FutureScapes", a major online web survey. But surveys capture only a
limited set of static questions, so I wanted to take this opportunity to
find out what you all think.

Thanks - I'll be looking forward to your responses in the group.

Cordially,

Harold Wolhandler,
Director of Research, <hwolhandler_at_ActivMedia.com>
ActivMedia, Inc. <http://www.ActivMedia.com>

PS - we seek interested website partners to help with sampling
for FutureScapes - free demographic & psychographic marketing
data & website profiles to qualified partners -
see <http://www.ActivMedia.com/Partners> for details

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