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In its annual digital outlook guide for marketers and advertisers,
Avenue A | Razorfish (NASDAQ:AQNT), the
country’s largest interactive agency and
largest buyer of digital online media, reports that domestic advertising
spend for the agency has grown to $542 million. Findings from the report
and a 2006 spending analysis can be accessed at http://www.avenuea-razorfish.com/points.htm.
“Unlike traditional marketing, the impact,
reach and accountability of online marketing resulted in strong growth
in 2006 for many Web publishers,” commented
Jeff Lanctot, editor of the report and senior vice president and general
manager at Avenue A | Razorfish. “Long-time
digital leaders like Google, Yahoo! and MSN enjoyed an aggressive
increase in advertising spend, as did resurgent properties like AOL and
new destinations like social networks and blogs.”
Highlighted in the 140-page, 10-part report is insight that describes
where marketing dollars are being spent online, key trends that will
impact marketers in 2007, and new quantitative research on best
practices for measuring the effectiveness of advertising campaigns.
Where’s the Money?
Avenue A | Razorfish’s
2006 online media billings were up 30 percent from 2005, and up 73
percent from 2004. While search continued to grow, display media
outpaced search marketing in 2006. As large traditional marketers
continued to shift spending toward digital channels, brand-friendly rich
media and video ads proved effective.
A Demographic to Watch
The report also includes qualitative research on the “Digital
Class,” a study of the online behaviors of 18 –
24 year olds in the US, UK and Canada. “The
results confirmed what we believed to be true from the popular social
sites, but it goes beyond self-expression,”
said Lanctot. “This population lives and
breathes the Internet, and seeks differentiation through media, music
and online networking. For marketers seeking to engage with the Digital
Class, it’s critical to have a clear
understanding of how this group uses the Internet and other digital
channels, as well as how they view marketing. The differences are stark.”
Accountability
In contrast to traditional media channels, the online media environment
allows digital advertisers to track and measure marketing campaigns more
effectively. Through customized attribution tools, advertisers can
improve campaign evaluation, identify new profitable Web sites and
integrate their Web media and search strategies –
which can yield better return on investment (ROI) analysis and improve
conversion rates.
Also included in the report are the “publishers
of the year,” an evaluation of new
technologies, best practices for creative online Web design, and a
framework for assessing emerging media channels, such as video and
mobile. Two new additions this year include an Op-Ed section which dives
into the trends and technologies that will lead the digital revolution
and a Q&A-style dialog from experts at Avenue A |
Razorfish in the US, United Kingdom, China, Australia and Germany. They
answer questions marketers ask, such as, “How
can I create a successful viral campaign? What are the pitfalls to avoid?”
The report summarizes the top five things every marketer should know to
build and create successful online campaigns. Lanctot concludes, “If
the marketer’s goal is to inspire customers,
building a better Web site that meets customer needs is one thing.
Engaging consumers beyond the Web site by connecting with them in their
world on their terms is the way to build a long-term relationship.”
About Avenue A | Razorfish
Avenue A | Razorfish is one of the largest
interactive marketing and technology services agencies in the world. The
company helps industry leaders such as Kraft, Dell, The New York Times
and Starwood Hotels use digital channels to acquire and service
customers. Avenue A | Razorfish's full suite
of digital offerings includes online advertising, Web site design and
development, email and search engine marketing, emerging media
strategies, and enterprise portal development. Its award-winning client
teams have a great understanding of customer needs and provide solutions
through distinct business disciplines, which include: analytics,
strategy, technology, media, creative design and user experience. An
operating unit of Seattle-based aQuantive, Inc. (NASDAQ:AQNT), Avenue A |
Razorfish has offices in markets across the United States, and global
operations in Australia, China, France, Germany, Japan and the United
Kingdom. Please visit www.avenuea-razorfish.com
for more information.
In the company name Avenue A | Razorfish
noted in this news release, a pipe symbol appears between Avenue A and
Razorfish. This symbol may not appear properly in some systems.