WIRED Staff
Business

Spending on Web Ads: What Goes Around, Comes Around

It's remarkably circular: Those who spend a lot, make a lot.

Good news! Spending on Web advertising nearly doubled from the first quarter of 1996 to the second, to US$43 million worldwide. According to Jupiter Communications in New York, spending on Web advertising will pass $300 million this year, and, if this growth continues, $5 billion by 2000.

Now here's the weird news: Webvertising is remarkably circular. The top 10 publishers soak up two-thirds of those revenues. And six of the top 10 publishers - familiar names like Netscape and Yahoo! - rank in the top 10 among spenders on Web advertising. Given that these big publishers accounted for only one-third of spending on Web advertising, this is not a closed loop - but it's hardly a healthy openness, either. Diversify or die.

The Top 10 Web Publishers

Sites Ranked by 2nd Quarter Revenue

  1. Netscape $7,755,990

  2. Infoseek $3,793,464

  3. Yahoo! $3,702,500

  4. Lycos $2,551,860

  5. Excite $2,397,500

  6. CNET $2,080.015

  7. ZD Net $2,072,088

  8. NewsPage $1,407,663

  9. ESPNet SportsZone $1,343,322

  10. WebCrawler $1,235,000

The Top 10 Web Advertisers

Sites Ranked by 2nd Quarter Spending

  1. Microsoft $2,009,301

  2. Infoseek $1,448,080

  3. Excite $1,436,979

  4. The McKinley Group $1,384,065

  5. Netscape $1,313,436

  6. Yahoo! $1,279,998

  7. Lycos $1,279,848

  8. AT&T $1,178,546

  9. CNET $1,036,158

  10. Nynex $1,001,903