24/7 Real Media Study Shows Behavioral Targeting Delivers Improved Performance to Online Advertisers and Increased Value to Publishers

Business Wire, April 4, 2005

NEW YORK -- First in Series of Quarterly Research Reports Reveals Results and Key Findings from Campaigns Conducted in Q4 2004

E[acute accent]Highlights of Key Findings:

E[acute accent]--Behavioral targeting increased publisher yield by up to 360 percent

E[acute accent]--Behavioral targeting is a valuable tool that deserves a place in advertisers' broader online marketing mix

E[acute accent]--Network behavioral targeting requires a carefully formulated taxonomy as well as constant monitoring and adjustment to reach its full potential

E[acute accent]--A Starwood Hotels and Resorts' behaviorally targeted online campaign achieved 22 percent increase in ROI

E[acute accent]Behavioral targeting can significantly enhance the performance of online advertising and increase the value of online publishers' untargeted inventory, according to a new report issued today by interactive marketing and technology pioneer 24/7 Real Media, Inc. (Nasdaq: TFSM). The groundbreaking study examines the results of numerous campaigns conducted in the fourth quarter of 2004 using 24/7 OnTarget(TM), the first major online network behavioral targeting solution introduced. E[acute accent]The 24/7 Real Media study found that behavioral targeting, on its own, is a valuable tool that delivers improved performance to advertisers by increasing overall ROI and reach. Moreover, when integrated into an online advertising network vast enough to produce audience segments with extensive reach (e.g. Gamers, Music Lovers, Entrepreneurs), behavioral targeting becomes exponentially more precise and powerful, giving advertisers a simple way to execute a variety of campaigns with a single vendor. In addition to providing overarching insights gleaned from the results of a range of behavioral targeting campaigns, the study presents three campaign case studies, explaining how and why they achieved varying degrees of success. E[acute accent]"As a pioneer and leader in the online advertising industry, we analyzed the behavioral targeting campaigns we have conducted to date in an ongoing effort to determine how to optimize results for advertisers and publishers alike," said David J. Moore, chairman and CEO of 24/7 Real Media. "Because behavioral targeting's effectiveness is enhanced by the size of the audience, the broad reach of 24/7 OnTarget positions us well to offer compelling insight into what works and what doesn't. The quarterly behavioral targeting report that we introduce today will inform and educate the broader industry about best practices in leveraging the full potential of this exciting, yet still emerging, tool." E[acute accent]On the advertiser end, the Behavioral Targeting Report determined that network behavioral targeting requires a carefully formulated taxonomy that enables a wide range of market driven segments. The report also concluded that for publishers, network behavioral targeting is a much simpler value proposition. 24/7 Real Media discovered that behaviorally targeted campaigns increased the revenue per thousand of network inventory by 360 percent. Thus, behavioral targeting can increase the value of a publisher's untargeted inventory and increase revenue flows and profits without significant investment. E[acute accent]One of the report's principal case studies details how Starwood Hotels and Resorts, one of the largest hotel and leisure companies in the world, was able to successfully leverage behavioral targeting to improve campaign performance, increase reach and accuracy, decrease waste, and increase ROI by 22 percent. E[acute accent]"We found network behavioral targeting to be a highly effective tool for increasing the reach and ROI of our Starwood Spa Collection online advertising campaign," noted Alexa Sanchez, manager, Online Media at Starwood Hotel and Resorts. "As a result, we have renewed the campaign and are working with 24/7 Real Media to determine ways to best utilize this powerful tool for other product promotions." E[acute accent]Unlike other forms of behavioral targeting, network behavioral targeting gives advertisers the advantage of a single buy for delivery of targeted ad impressions across a range of publishers. It also enables publishers to sell lower value inventory as targeted impressions, at a significantly improved price. Networked behavioral targeting's effectiveness depends, among many other things, on the scale of the network. E[acute accent]"While advertisers and publishers have an equal amount to gain from participating in behavioral targeting, advertisers have, so far, been quicker to understand its advantages," said Jack Smith, vice president, product strategy at 24/7 Real Media. "Our research shows that behavioral targeting delivers improved performance and reach in many cases. We recommend that behavioral targeting be utilized as a powerful component within a broader mix of online advertising strategies, such as single site buys or network content verticals. Depending on the advertiser goals, behavioral targeting should be used in varying proportions with other targeting methods." E[acute accent]24/7 OnTarget is 24/7 Real Media's state-of-the-art behavioral targeting solution that enables marketers to reach large-scale target audiences more efficiently. By leveraging non-personally identifiable data and delivering ads only to those Internet users most likely to respond, 24/7 OnTarget increases campaign performance and eliminates waste for advertisers, while increasing the value of inventory for publishers. 24/7 OnTarget operates within the context of its global network of more than 800 Web sites, the 24/7 Web Alliance(TM). The company's ad servers deliver over five billion impressions each month, with 98 percent of these impressions sold on a "cost per thousand" basis. E[acute accent]"As acceptance of behavioral targeting increases among publishers and advertisers, and with it the quantity and reach of campaigns, we anticipate learning a great deal by examining more variables that drive campaign performance," added Smith. "Future 24/7 Real Media studies will shed important light on emerging trends in this nascent, yet rapidly growing, area of the interactive marketing industry." E[acute accent]To obtain a free copy of the full report and subscribe to receive subsequent reports, please visit http://www.247realmedia.com/infoform/resQ4. The next report, revealing the analysis and findings of campaigns conducted in the first quarter of 2005, will be released in July 2005.