The much-ballyhooed merging of online advertising and direct marketing continues apace, according to a new study from Jupiter Communications, which estimates that by 2002 online publishers will count $7.7 billion in ad revenue and $1.3 billion in direct marketing income.
Those direct marketing revenues could come from renting subscriber lists or collecting commissions for helping sell an advertiser's products. Jupiter said such deals will become central in publisher-advertiser relations.
For 1997, Jupiter expects nearly $940 million in online ad revenues but a paltry $86 million in direct marketing deals.
"Publishers who provide wide distribution channels to marketers and who carry consumers closer to the point of sale will be the winners," Peter Storck, director of Jupiter's online advertising group said in a statement. "Only a few big players--America Online in particular--have demonstrated the muscle so far."
For publishers, Jupiter thinks, size matters. Ad dollars will become concentrated in a handful of giant online publishers.
In other findings in the report, Jupiter said the following: