24/7 Real Media Study Finds Behavioral Targeting Click Through Rates Nearly Tripled in First Quarter 2005; Enhances CPM Value of
20 July 2005 - 8:00PM
Business Wire
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.
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