24/7 Real Media (NASDAQ:TFSM)
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24/7 Real Media, Inc.:
Company Adds Six New Standard Behavioral Segments
to Broaden its Behavioral Targeting Capabilities
Highlights of Key Findings:
-- Click-through rates from behavioral targeting increased by 250
percent in Q1 2005 compared to Q4 2004
-- Publisher acceptance of behavioral targeting increased by 181
percent over Q4 2004
-- New behavioral targeting advertisers increased 147 percent
over Q4 2004
Advertisers experienced significant increases in click-through
rates, while publishers received higher CPMs and revenue by using
behavioral targeting to maximize the effectiveness of lower tier ad
inventory, according to a new report issued today by interactive
marketing and technology pioneer 24/7 Real Media, Inc. (Nasdaq: TFSM).
The company's second quarterly study examines the results of numerous
campaigns conducted in the first quarter of 2005 using 24/7
OnTarget(TM), the first major online network behavioral targeting
solution.
The 24/7 Real Media Quarterly Behavioral Targeting Research Report
for Q1 2005 demonstrates that behavioral targeting increased
click-through rates by up to 250 percent in the first quarter of 2005
compared to the fourth quarter 2004. The study also found that
behavioral targeting increases the effective yield per thousand
impressions of publishers' overall inventory, particularly the value
of lower tier inventory, which jumped 550 percent.
"After two full quarters of running the Internet's largest
behavioral targeting network, 24/7 Real Media has the industry's best
understanding about how to increase performance for advertisers and
CPM for publishers," said David J. Moore, Chairman and CEO of 24/7
Real Media Inc. "We expect to see further increases in behavioral
targeting results as we act on the insights gained from the daily
operation of 24/7 OnTarget. Above all, our studies clearly show that
behavioral targeting across a large network of Web sites drives the
greatest benefit for both advertisers and publishers."
24/7 Real Media also found that behavioral targeting is becoming a
more powerful and trusted tool in meeting online marketers' need to
increase reach. The Q1 study showed a 147 percent increase in
participating advertisers over Q4. Publisher acceptance also increased
by 181 percent over Q4 2004, which can be attributed to proven
increases in eCPMs compared to the negligible expense involved in
making their inventories available for behavioral targeting
impressions. Campaigns employing behavioral targeting were evenly
split among those that used it as a stand-alone solution and those
that incorporated it into a larger media buy.
"The fact that behavioral targeting was able to increase the value
of publishers' lower tier inventory by as much as 550 percent, and
nearly triple click-through rates, demonstrates that publishers who
have remnant or unsold inventory can benefit tremendously from this
emerging advertising vehicle," said Jack Smith, vice president,
product strategy at 24/7 Real Media. "More knowledge about the
audience on a given Web site provided the base for this performance
increase."
One of the report's principal case studies details how a major
film studio achieved a 25 percent higher click-through rate on
behaviorally targeted online movie ads aimed at women, compared to ads
delivered to women's interest sites. The behaviorally targeted ads
demonstrated their ability to reach and appeal to their target
audience on non-traditional women's sites, whose ads cater to a
broader demographic, as opposed to traditional women's sites, where a
reasonable click-through rate could be expected.
Other findings from the report showed that results can vary widely
based on the various behavioral targeting segments, as well as the
type of behavioral targeting method employed. As a result, 24/7 Real
Media concludes that no single method is ideal for every campaign and
that marketers need to fine-tune their messages and content in order
to achieve the desired response when delivering targeted ads to
various segments out of context.
For example, the simplest type of behavioral targeting is
Retargeting, which in some circumstances can be extremely precise and
effective. In its most common form, it serves an anonymous cookie to
users' browsers when they visit a particular site, and then retargets
those users on other sites with a predetermined ad. Retargeting on a
single Web site may not yield significant results, but across large
networks or publishers this technique is much more effective,
particularly when the original site combines narrow focus with a large
established user base. In such circumstances massive reach and
desirable precision can be achieved together.
To keep up with the demand for more precise targeting, 24/7 Real
Media added six new behavioral targeting segments during the quarter,
for a total of 14 segments. The new segments include:
-- Men, Hispanic and African American - designed to satisfy
obvious market demands in reaching those who frequent sites of
specific interest to males, Hispanics or African Americans.
These broadly based segments offer extensive scope for
additional optimization to suit the targeting requirements of
individual advertisers.
-- Stock Watchers - reaching Internet users who habitually check
their portfolios and access stock quote and other
market-related pages with a predetermined frequency.
-- Big Spenders - those who make frequent online purchases or
interact frequently with shopping content (This segment is
tracked anonymously and no transaction details are collected;
consequently the value of their purchases is not a criterion
for inclusion in the segment.)
-- Cyber Jockeys - heavy Internet users across any and all
content. This segment is used primarily for optimization
purposes alongside other segments, but can be purchased as a
stand-alone segment.
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 the 24/7 Web
Alliance(TM), its global network of more than 850 Web sites that
deliver more than six billion impressions each month.
To obtain a free copy of the complete Second Quarter Behavioral
Targeting Report, or view the inaugural report, please visit
http://www.247realmedia.com/infoform/resQ1. The next report, revealing
the analysis and findings of campaigns conducted in Q2 2005, will be
released in the fall.
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. 24/7 Real Media: Delivering Today. Defining
Tomorrow.
Caution concerning forward-looking statements: This news release
includes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
are based on management's current expectations and are naturally
subject to uncertainty and changes in circumstances. Actual results
may vary materially from the expectations contained herein due to
changes in economic, business, competitive and/or regulatory factors.
More detailed information about those factors is set forth in our
filings with the Securities and Exchange Commission. In addition, the
following factors, among others, could cause actual results to differ
materially from those described herein: the potential for impairment
of relationships with employees or major customers, loss of faith in
Internet advertising, international risks, regulatory risks, and other
economic, business, competitive and/or regulatory factors affecting
the businesses of 24/7 Real Media. All information in this release is
as of July 20, 2005. The Company is not under any obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.