24/7 Real Media's Interactive Marketing Experts Reveal Their Online Advertising Predictions for 2006; Podcasting, Online Product Placements to Increase, as TV Viewership Declines

Business Wire, Nov 8, 2005

10. Performance-based pricing models will demonstrate the true value of search engine marketing (SEM) as a lead generation channel

The majority of the market has left traffic arbitrage behind, and search engine marketing is more credible for it. "Value" arbitrage, however, has yet to be fully exploited to any significant extent. With the ability of sophisticated SEM tools to understand both the market price for inventory and the true value of that inventory to the advertiser, coupled with margin pressures on "managed services," 24/7 Search experts anticipate that SEM firms and agencies will more willingly embrace and participate in performance-based pricing models. This will transfer some of the performance risk to the operators, who must use their experience and tools to deliver the value they have long promised, and who will share in the return generated.

For the skilled SEM firm and tool developer, this will drive higher returns and closer client relationships, while maintaining transparency of the medium. For the savvy marketer, particularly in acquisition-based industries, this will transform the view of search from an advertising medium to a lead generation channel.

About 24/7 Real Media, Inc.

24/7 Real Media, a pioneer in interactive marketing and technology, targets and delivers audiences for publishers and marketers. Our customers generate increased revenue and profits through media and search services, coupled with one seamless platform of serving, targeting, tracking and analytics technologies. The company is headquartered in New York, with offices in other major U.S. cities, Canada, Europe and Asia. For more information, please visit www.247realmedia.com.