Ad revenue for CBS SportsLine last year "soared well
beyond the industry average of 157%, climbing 475%," while
Disney's ESPN SportsZone's jumped 36% to $9M in '97,
according to David Sweet of the WALL STREET JOURNAL, who
cites InterWatch, a publication of InterMedia Advertising
Solutions. The two sites "are drawing increased revenue
from subscribers to premium areas and electronic-commerce,
but they are heavily dependent on ad money," and in an
economic downturn, advertisers "are likely to slash Internet
advertising first because the young medium is less
entrenched." Times Mirror Interzines President Mike
Dubester estimates that advertising "contributes 75% of the
division's Web site revenue." Shelley Morrison, VP/
Advertising for Buena Vista Internet Group, which runs
ESPN's site, along with the NBA, NFL and NASCAR sites,
estimates that 40% of the sites' revenue comes from
sponsorships. PricewaterhouseCoopers Dir of New Media Peter
Petrusky said that sports sites captured 5% of a Internet
advertising in '97's fourth quarter. In the first quarter
of '98, they brought in 8% of the $351M spent on ads. But
Sweet adds that "next year could be challenging for sports
sites," as there no events such as the Olympics "that
capture attention world-wide" (WALL STREET JOURNAL, 8/7).
