Archive for Monday, June 26, 2000

Business Bits

June 26, 2000

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Only elite will survive

Online advertising is expected to grow by roughly 700 percent in the next five years, but media research firm Jupiter Communications Inc. says the majority of global companies are not prepared to effectively communicate over the Web.

Worldwide Internet advertising spending is expected to be about $28 billion by 2005, up from $4.3 billion in 1999. But Jupiter says an overall lack of techno-savvy, a hesitation to embrace new models and an inability to integrate ad campaigns across different media will need to be overcome if advertising dollars are to be well spent.

"The challenges are commensurate with the opportunities," said Jupiter's vice president of international research, Evan Neufeld. "Brands that can innovate and adapt to the increasingly fragmented media mix online and off-line ... will become global winners. There will be few prizes for second place."

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