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IS WEB AD DROP FORCING SOME SITES TO FILL WITH HOUSE ADS?

          Having "failed to attract national advertisers in the
     numbers they'd expected, many Web sites now are filling
     their pages with house ads," according to Kathryn Kranhold
     of the WALL STREET JOURNAL, who cites a study by tracking
     group Leading Web Advertisers which found an estimated 73%
     of the ads on ESPN.com "tout ESPN or other Disney-related
     products and Internet offerings."  But Go.com Exec VP/Sales
     & Development Mort Marcus said that ESPN.com "runs so many
     house ads on purpose."  Marcus: "Whenever we run a banner
     (from an outside advertiser), next to it we run a home ad." 
     Kranhold notes that the use of house ads comes as the "click
     through" rates on all Web sites "are decreasing."  Margeotes
     Fertitta & Partners Dir of Interactive Services Ann Carey
     said that six months ago, "about 1% of consumers who viewed
     an ad clicked on it, compared to less than a half of a
     percent these days."  Go.com Senior VP Scott Schiller notes
     that the "barrage of house ads on ESPN.com looks odd," but
     said that ESPN.com "has booked four times the amount of ad
     revenue" for the FY that started October 1 compared with the
     previous FY. Schiller: "We are working to reconfigure our ad
     spaces to have more meaningful ads" (WALL ST JOURNAL, 6/27).

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