Ad Industry Embraces New Guidelines for Online Ads; IAB Survey Conducted at AAAAs Media Conference Reveals Overwhelming Support

Business Wire, March 13, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--March 13, 2001

According to a survey conducted by the Internet Advertising Bureau (IAB) in association with the American Association of Advertising Agencies (AAAA), advertising industry decision-makers are overwhelmingly supportive of the new voluntary guidelines issued by the IAB for interactive marketing units.

An almost unanimous majority of those surveyed (93%) view the new units as more effective than previous guidelines. The enthusiastic support of the new guidelines by top-level agency representatives is underscored by the number of respondents (26%) who have already utilized the new larger units.

In addition, the survey indicates these ad industry decision-makers view the Internet as a multi-platform strategic marketing vehicle with a diversity of strengths. On a scale of 1-5, with 5 being the most promising, respondents ranked the Internet's potential for both one-to-one marketing (4.3) and direct marketing (4.2) very high. The Internet is also considered a strong promotional vehicle (3.7) and a good branding tool (2.9).

"It was fortunate that we were able to conduct this survey with a high level group of ad industry executives within days of the announcement of the IAB's new voluntary guidelines for Interactive Marketing Units (IMUs)," noted IAB CEO Robin Webster. "These are the people and companies who will benefit most from the adoption of these guidelines. Their enthusiasm and acceptance of these new models indicates to me a quick and widespread implementation by the industry."

Additional findings of the study reveal:

- Forty-three percent (43%) of the respondents believe the new units warrant
higher CPMs and attach an average premium of 13 percent (13%) to the units.

- On a scale of 1-5, with 5 being the most problematic, respondents indicate
the greatest difficulties in adopting online advertising are banner size (4.2)
and lack of measurement (4). Other major obstacles rated as significant include
low click-through rates (3.9) and lack of good creative (3.4).

"This survey at the AAAA's conference was the perfect barometer of both acceptance of the new guidelines by agencies and affirmation of their belief in the medium," said Richy Glassberg, CEO and chairman of Phase2Media and vice chairman of the IAB. Added Glassberg, "The Internet advertising medium has extraordinary potential. But we have to work together to ensure the ads are more compelling, allowing advertisers and agencies to take advantage of the breadth of options available to them. IAB members stepped up to the plate and gave agencies something that will quickly foster more effective, creative online ad executions."

The survey was conducted at the AAAA 2001 Media Conference & Trade Show in New Orleans. The AAAA's membership produces approximately 75 percent of the total advertising volume placed by ad agencies nationwide. The AAAA 2001 Media Conference and Trade Show is the largest and most significant conference of agency media purchasers in the U.S. Responses were received from 78 participants representing high-level agency media decision makers including: agency buyers, planners, and directors; brand and marketing managers; publishers; and research companies.

Founded in 1996, the IAB is the industry's leading online advertising association. Its activities include evaluating and recommending standards and practices, fielding research to document the effectiveness of the online medium and educating the advertising industry about the use of online advertising. Current membership includes companies that are actively engaged in the sales of Internet advertising, with associate membership including companies that support advertising, -- interactive advertising agencies, measurement companies, research suppliers, technology suppliers, traffic companies and other organizations from related industries. A global organization, IAB member countries include; Belgium, Canada, France, Germany, Holland, Hong Kong, Italy, Switzerland and the United Kingdom, and is currently developing membership countries in Asia and Latin America, as well as other countries in Europe. In July of 1998, the Internet Advertising Bureau and the Internet Local Advertising & Commerce Association (ILAC) agreed to combine their organizations for the IAB's local advertising initiatives. In May of 2000, the IAB's Wireless Advertising Council (WAC) joined forces with the Wireless Advertising Industry Association (WAIA) to form the Wireless Advertising Association (WAA), which is an independent operational unit, with its own Board and Officers.

The American Association of Advertising Agencies is the national trade association of the advertising agency business. The 1,225 member agency offices it serves in the U.S., employ 65,000 people, offer a wide range of marketing communications services, and place 75 percent of all national advertising. The management-oriented association helps its members build their businesses and acts as the industry's spokesman with government, media, and the public sector.