In the past five years, we have seen the Internet increase 25-fold. According to January 1998 estimates, the commercial domain is the largest domain on the Internet with 28% of all Internet hosts (Network Wizards, 1998). Moreover, the commercial domain is by far the largest and fastest growing on the World Wide Web with an estimated 63% of all sites on the Web (Gray, 1997). It appears that businesses are increasingly taking part in the new marketing forum available in cyberspace. Yet, many companies are growing disillusioned with the commercial possibilities of online advertising, and some have suggested that the Internet is better suited for interpersonal communication and personal sites rather than commercial sites (Bayers, 1996). Executives are questioning whether the potential of the Internet is real or just hype, and some companies are considering decreasing or removing their investment in online advertising. Questions remain, however, whether these online businesses are currently taking advantage of the Internet’s capabilities and hence its potential beneflts. Moreover, are these businesses integrating their online marketing strategy effectively with other traditional advertising media? Or, are their online advertising strategies actually
precluding them from attaining the potential beneflts of online advertising? Our research attempts to address these questions.