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Web Publishers Predict Increased Use of Rich Media, Streaming Content and Behavioral Targeting in 2005


WEBWIRE –

New Research From Advertising.com Examines Advertising Business Expectations of Online Publishers for 2005

Baltimore, MD, 02/09/2005 -- Advertising.com, Inc., a leading provider of results-based interactive marketing services to advertisers and publishers, today released findings from its second annual survey of online publishers. The study surveyed publishers about their advertising business expectations for 2005. Results reveal an overall positive outlook, with expected growth in spending on emerging advertising technologies and by traditional advertisers such as those in the pharmaceutical, automotive, travel and entertainment industries.

Overall findings

Key revenue growth areas for 2005 include text links, large rectangles and small banners. Additionally, publishers identified rich media, streaming content and behavioral targeting as advertising channels that will have the greatest impact on their 2005 ad revenue.

Traditional advertisers are expected to increase their online advertising spending in 2005, concentrating their online ad dollars on rich media, streaming content, contextual advertising and large rectangles. However, revenue to online publishers is still expected to come predominantly from web-based advertisers working to achieve direct-response objectives. Publishers working more with web-based advertisers expect search and text links to contribute the most to their 2005 revenue growth.

Predictions

-- Rich media, streaming content and behavioral targeting to increase

Seventy percent of the surveyed publishers support rich media ad formats, and publishers expect rich media ads to have the greatest impact on their 2005 revenue. Streaming media was also mentioned frequently as having the potential to positively impact ad revenue in 2005.

Behavioral targeting and contextual advertising were also expected to bring in additional revenue for publishers in 2005. More than 50 percent of publishers currently support contextual advertising, defined as ads served based on the content of the web page. Approximately 24 percent support behavioral targeting, which targets ads based on user behaviors such as web surfing habits or responses to prior ads.

-- Traditional advertisers expected to increase online spending

Although web-based advertisers continue to generate the greatest share of online advertising dollars, publishers predict a 20 percent increase in traditional advertisers’ online spending compared with 2004.

“Our publishers report that traditional advertisers are beginning to perceive online advertising as more ’mainstream,’” says Scott Ferber, chief executive officer of Advertising.com. “These predictions are consistent with our own experience working with advertisers. Both web-based and traditional advertisers are becoming more comfortable using the web for direct-response as well as branding campaigns. And newer, more sophisticated targeting strategies and technologies are enabling them to measure and optimize the effectiveness of those campaigns better than ever before.”

-- Text links lead, banners make a come-back

Publisher expectations for revenue by creative format varied considerably from reported expectations in 2004. Key revenue growth areas for 2005 include text links, large rectangles and small banners. In fact, predicted revenue growth for banners more than doubled compared with the 2004 survey.

Methodology
Marketing research company InsightExpress conducted the study by surveying leading online publishers from December 15-23, 2004. The study specifically examined publishers’ expectations with regard to advertising revenue growth by creative unit and changes in advertisers’ objectives and publishers’ advertising capabilities.

To receive a copy of the complete study, please contact Lisa Jacobson at ljacobson@advertising.com.

ABOUT ADVERTISING.COM(SM), INC.

Advertising.com conducts strategic direct-response and brand marketing campaigns that guarantee bottom-line results for our clients. From web ads to search listings, we offer diverse tactical tools, innovative thinking and the most expansive reach in the industry. Advertising.com is a wholly owned subsidiary of America Online, Inc.

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