Intel to spend huge on Web ads

Intel will dig into its $750 million 'Intel Inside' co-operative advertising treasure chest to breathe fire into Web ad sales.

According to a report in US trade journal Advertising Age, the chip giant will spend at least $75 million contributing to a dollar-for-dollar incentive for PC makers to tap the potential of Web advertising. That means a basic total cash injection of $150 million for Web ad sales, making Intel the number one big spender for the medium, according to the magazine

An Intel UK spokeswoman confirmed the plan will be rolled out in the UK too and said the figures sounded "about right".

"It's really just recognising the Web as a powerful advertising medium; 'Intel Inside' is not just print and broadcast anymore," she said. "We've learned the power from our own Web site where we had record downloads for Internet Phone. 60 per cent of our communications with [OEM] customers are now via the Internet." The Web ad spend will kick in as of September 1, the spokeswoman confirmed.

Putting Intel initiative into stark perspective, online advertising was worth $217.3 million for the first six months of this year, according to Electronic Advertising & Marketplace Report, a US newsletter.

The newsletter reported this week that online advertising totaled $217.3 million for the first six months of 1997, an increase of 256.2 per cent over the same time last year. Most sales were to technology firms with Microsoft leading the way. The software vendor will spend $20 million on Web ads this year.