Lower ad spending hurts net companies

Fears that advertising revenue for large internet companies will take a cut as result of slowing growth in internet adspend by small, struggling e-companies sent share prices for internet giants Yahoo!, RealNetworks and DoubleClick tumbling at close of trade in the United States on Wednesday.

The stock value of DoubleClick, which helps companies place ads on websites, dropped 10 per cent and that of software maker RealNetworks fell 13 per cent.

Many sites are slashing spending in a bid to turn a profit faster.

Reports suggest online sites are also being hurt by a fall in the number of internet firms going public.

The number of internet-related stock offerings fell by more than half in the second quarter of 2000. Commentators predict dotcoms will be hardest hit.

Bricks-and-mortar firms will continue to place advertising on the web, they say, although websites and other media outlets such as magazines are likely to see fewer internet dollars this year.