Is Internet Advertising Ready for Prime Time?

Xavier Dreze and Fred Zufryden

Advertising on the World Wide Web is growing at a fast pace. However, it is difficult to compare advertising effectiveness on the Internet relative to standard media, such as broadcast and print, because current measures of advertising effectiveness on the Web are not standardized and incorporate significant measurement errors.

Is Internet Advertising Ready for Prime Time?

Xavier Drèze University of Southern California

Fred Zufryden University of Southern California

The authors would like to acknowledge and thank Paul Grand. CEO of Word of Net, for providing the data used in this study.

Online adversting revenues reached $906.5 million in 1997 (Internet Advertising Bureau, 1998). Although advertising expenditures on the Internet remain relatively small in contrast to standard media, this figure is approaching that of outdoor advertising and represents nearly a three-fold increase over the last two years. In 1995, only $312 millions were reported on Web advertising...

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