24/7 Real Media Study Finds Behavioral Targeting Click Through Rates Nearly Tripled In First Quarter 2005
- 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
- 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.
Enhances CPM Value of Online Publishers' Ad Inventory Up to 550 Percent
Company Adds Six New Standard Behavioral Segments to Broaden its Behavioral Targeting Capabilities
Highlights of Key Findings:
NEW YORK -- July 20, 2005 - 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™, 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:
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 850 Web sites, the 24/7 Web Alliance®, which delivers over six billion impressions each month, with 98 percent of these impressions sold on a "cost per thousand" basis.
To obtain a free copy of the complete Second Quarter Behavioral Targeting Report, or view the inaugural report, please visit www.247realmedia.com/infoform/resQ12005.html. 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.
For more information on 24/7 Real Media, Inc., please contact:
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.
24/7 Real Media is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC. These principles are designed to help ensure Internet user privacy. For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt-out of 24/7 Real Media cookies, go to: www.networkadvertising.org.
Investor Relations
Sushene Leitch
Director, Investor Relations
24/7 Real Media, Inc.
Telephone: 212-231-7990
Email: sushene.leitch@247realmedia.com
Media Relations
Eric Sokolsky
Weber Shandwick
Director
Telephone: 212.445-8081
Email: esokolsky@webershandwick.com
