Subject: Portals Must Seek Life Beyond Banner Ads
From: Chris Rasch <>
Date: Sun, 25 Feb 2001 12:43:48 -0700

Via R.A. Hettinga, via Newscan:

> Internet portals such as Yahoo and MSN need to rethink their business plans
> and develop alternative revenue sources to the ubiquitous banner ads that
> now comprise their major income source, says a new report from Booz Allen
> and NetRatings, which recommends looking into paid premium content and
> services for new revenues. In turn, marketers should start "treating
> portals as brand development venues, paying them for the total number of
> impressions they deliver to a site's visitors." The study found most portal
> visitors view portals as destinations, rather than jumping-off points for
> the Web. Internet users spend an average of 4.5 hours per month on portals,
> about three times as much as they spend at shopping or entertainment sites.
> Only about 1% of visitors click on banner ads, however, even though banners
> still account for half of all Internet advertising. The study concludes
> that advertisers should eschew banners in favor of co-sponsorship deals
> with portals, while at the same time, portals must move their users from
> free to paid services. (Financial Times 22 Feb 2001)