MSN web ad splurge
to wrest away AOLers

Message: Unhappy over rate hike? Come to us


By Marty Beard


    MSN has launched an all-out online advertising offensive as it attempts to both take over the web and poach users from arch-rival AOL.
    While it’s too early to tell if the raid on AOL is working, one thing is clear: The $50 million campaign to persuade AOL users to switch to MSN is reaching millions of eyeballs online.
    For the week ending July 8, the Microsoft Network was the No. 2 advertiser online, with 324,539,598 impressions and a unique audience of 13,825,678, according to Nielsen//NetRatings. 
    Last week, MSN was the No. 4 online advertiser.
    MSN ads were second only to those of its parent company, Microsoft, which had 469,035,965 impressions and a unique audience of 23,326,632.
    Much as Redmond, Wash.-based Microsoft dominates the operating system and office software markets, it has dominated the list of top banner ads week after week.
    From July 2 through July 8, Microsoft banners touted its bCentral small business services along with its Windows Media Player.
    But the influx of MSN ads appears to be another manifestation of Microsoft’s .NET strategy, which is essentially the company’s plan to dominate all things internet.
    MSN banners, skyscrapers and buttons appeared on major web properties, including Juno Online Services, InfoSpace and Yahoo, plus slightly smaller sites like MyFamily.com, Fishspotter.com and Candystand.com.
   The ads tout MSN’s portal-like services, such as its email newsletters and online community services and calendar, its Home Advisor real estate and home maintenance site, and its CarPoint auto site.
    But perhaps most important, there were also ads trying to persuade people to sign up for MSN’s internet access service.
    MSN, which has about five million users, remains a distant second to Time Warner’s America Online, with 30 million-plus subscribers, and ranks just above EarthLink, which has 4.8 million users.
   The ISP/portal raised its rates by $1.95 in late May, to $23.90 a month, and shortly afterwards launched a $50 million ad campaign designed to persuade AOL users to switch to MSN.
    AOL users who defected to MSN by June 30 were to be rewarded with three months of gratis service and the guarantee that they would pay MSN no more than $21.95 a month through January 2003.
    MSN is banking on AOL users’ unwillingness to pay an extra $23.40 a year for internet access. But the campaign to win over AOL users won't be helped by technical problems that have plagued MSN in recent weeks.
    Most notably, MSN’s instant-messaging service, MSN Messenger, was inaccessible to about a third of its 30 million users starting July 3.
    Many of the users who couldn’t log on found that their "buddy lists," or address books filled with friends’ email and instant-messaging nicknames, were lost for good.
    While service was restored about a week after the outage began, some damage to MSN’s credibility may have taken place. There’s evidence that some MSN Messenger users have fled to AOL and Yahoo’s instant-messaging services.
    "Our research suggests the cost of switching from AOL to MSN is very low for a large number of people," says Forrester Research analyst Frank Prince. "But certainly the technical difficulties will affect the efficacy of this MSN ad campaign, and it will require, if anything, a redoubling of their efforts from a marketing point of view."
    Microsoft and MSN did not respond to Media Life’s requests for information about the online ad campaign.

 

 

Top 25 Properties


Property

Unique Audience

Reach %

Time

1. AOL Time Warner

37,342,963

51.06

0:15:29

2. Yahoo

31,082,167

42.50

0:27:59

3. MSN

26,983,213

36.90

0:22:47

4. Microsoft

9,568,223

13.08

0:04:39

5. Excite@Home

9,078,166

12.41

0:13:16

6. Lycos Network

8,348,763

11.42

0:09:12

7. eBay

7,195,458

9.84

0:39:02

8. Walt Disney Internet Group

5,991,752

8.19

0:15:07

9. About

5,784,676

7.91

0:07:21

10. Amazon

5,159,970

7.06

0:08:19

11. Google

4,942,652

6.76

0:06:55

12. eUniverse Network

4,748,507

6.49

0:08:28

13. InfoSpace

4,539,260

6.21

0:04:38

14. CNET Networks

4,379,483

5.99

0:06:11

15. Vivendi Universal

4,372,275

5.98

0:08:51

16. NBC Internet

3,545,113

4.85

0:04:54

17. Ask Jeeves

3,437,123

4.70

0:04:47

18. ClassMates Online

3,242,018

4.43

0:05:17

19. Napster

3,103,694

4.24

0:04:44

20. GoTo.com

3,047,237

4.17

0:02:13

21. AT&T

3,016,862

4.13

0:11:31

22. EarthLink

2,994,686

4.10

0:06:39

23. iWon

2,833,092

3.87

0:26:29

24. Gator.com

2,653,815

3.63

0:06:50

25. Viacom International

2,583,685

3.53

0:14:18

Source: Nielsen//NetRatings

 

 

Top Ten Advertisers


Advertiser

Impressions

Unique Audience

Reach %

1. Microsoft

469,035,965

23,326,632

31.90

2. MSN

324,539,598

13,825,678

18.91

3. Yahoo

227,997,816

16,621,824

22.73

4. eBay

206,054,099

14,045,690

19.21

5. ClassMates

170,883,819

16,319,218

22.32

6. America Online

158,788,437

18,240,010

24.94

7. Providian

156,843,167

17,575,650

24.03

8. Columbia House

150,673,403

22,024,508

30.12

9. Barnes and Noble

148,781,383

17,190,020

23.51

10. JP Morgan Chase

134,417,627

12,113,905

16.57

Source: Nielsen//NetRatings

 

 

Top 25 Domains


Domain

Unique Audience

Reach %

Time

1. yahoo.com

27,802,025

38.02

0:29:21

2. aol.com

26,234,737

35.87

0:13:23

3. msn.com

24,512,383

33.52

0:19:55

4. passport.com

13,548,885

18.53

0:03:17

5. microsoft.com

9,044,966

12.37

0:04:41

6. geocities.com

8,940,215

12.23

0:05:38

7. ebay.com

6,617,060

9.05

0:40:03

8. netscape.com

5,848,974

8.00

0:08:47

9. go.com

5,830,283

7.97

0:15:24

10. excite.com

5,157,353

7.05

0:16:58

11. google.com

4,936,956

6.75

0:06:55

12. amazon.com

4,773,984

6.53

0:07:53

13. promotions.com

3,884,301

5.31

0:05:17

14. lycos.com

3,756,751

5.14

0:11:14

15. classmates.com

3,232,877

4.42

0:05:18

16. napster.com

3,103,694

4.24

0:04:44

17. goto.com

3,032,588

4.15

0:02:13

18. bluemountain.com

2,902,982

3.97

0:06:45

19. iwon.com

2,833,092

3.87

0:26:29

20. compuserve.com

2,823,255

3.86

0:17:22

21. about.com

2,796,512

3.82

0:05:25

22. angelfire.com

2,707,423

3.70

0:03:28

23. earthlink.net

2,663,136

3.64

0:06:26

24. tripod.com

2,661,852

3.64

0:04:34

25. nbci.com

2,625,747

3.59

0:03:52

Source: Nielsen//NetRatings

 

Top 25 Advertising Domains


Domain

Impressions

Reach %

1. yahoo.com

1,294,537,565

33.01

2. msn.com

1,107,973,524

29.76

3. ebay.com

462,029,210

8.69

4. aol.com

362,789,736

22.55

5. netscape.com

177,578,463

7.28

6. excite.com

150,444,430

6.35

7. iwon.com

99,500,683

2.92

8. go.com

87,962,618

5.28

9. mapquest.com

84,211,644

3.15

10. audiogalaxy.com

81,338,228

1.07

11. pogo.com

70,100,938

2.05

12. compuserve.com

68,290,138

3.04

13. infospace.com

63,762,636

2.21

14. about.com

60,186,956

2.74

15. lycos.com

60,094,800

3.80

16. monster.com

59,970,093

2.11

17. passport.com

53,863,226

12.85

18. ezboard.com

53,051,428

0.93

19. netzero.net

52,208,110

1.90

20. dogpile.com

46,617,334

1.82

21. cnn.com

45,355,863

2.61

22. juno.com

42,447,063

1.67

23. ancestry.com

37,144,093

0.97

24. att.net

33,047,254

2.16

25. neopets.com

31,467,603

0.62

Source: Nielsen//NetRatings

 

 

Top Ten Banners


Advertiser

Impressions

Unique Audience

Reach %

1. Consumer Counseling

52,494,884

9,084,205

12.42

2. Colonize

35,802,462

8,805,389

12.04

3. Consumer Counseling

48,837,326

7,956,516

10.88

4. ClassMates

95,986,125

6,630,430

9.07

5. eDiets

58,601,321

6,376,149

8.72

6. Columbia House

13,952,876

5,791,663

7.92

7. ClassMates

14,486,831

5,676,232

7.76

8. JP Morgan Chase

32,933,398

5,430,168

7.43

9. JP Morgan Chase

18,133,854

5,296,729

7.24

10. JP Morgan Chase/Shell

17,573,932

5,264,092

7.2

Source: Nielsen//NetRatings

 

 

Average Usage


 

Current Week

Last Week

% Change

Number of Sessions per Week

6

6

0

Number of Unique Sites Visited

6

6

0

Page Views per Week

231

227

1.76

Page Views per Surfing Session

37

36

2.78

Time Spent per Week

3:14:06

3:13:08

0.5

Time Spent During Surfing Session

0:31:26

0:30:57

1.56

Duration of Page Viewed

0:00:51

0:00:52

-1.18

Average Click Rate for Top Banners

0.26

0.28

-7.14

Active Internet Universe

73,129,407

73,855,531

-0.98

Current Internet Universe Estimate

167,524,286

167,421,299

0.06

Source: Nielsen//NetRatings

 

July 13, 2001 © 2001 Media Life


-Marty Beard is a staff writer for Media Life.


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