Food for thought re GNNU verification technology ..
24/7 Media working to repair technology glitch
October 06, 2000 12:15 PM PT
by Louise Rosen
NEW YORK -- 24/7 Media (TFSM) sent out an email to affiliate customers on Monday stating that its
24/7 Connect ad serving and reporting software has glitches and is reporting inaccurate results to clients.
Analysts who didn't know about the email said that it confirms what they have been suspecting for some
time, that 24/7's technology needs a lot of development. "That [24/7] sent out an email to clients means that
they have a real problem," Rich Petersen, an analyst at Credit Suisse First Boston, told UpsideToday.
The reporting of online advertising data is of primary importance to companies because it helps them to
plan their campaigns. Without the correct information, advertisers do not know what is working and what
is not.
The email
The email reporting the technology glitches was sent to "affiliates" on Monday by Vivienne Dacey, senior
vice president and general manager of 24/7 Connect. It reads, "I would like to acknowledge the
inadequate reporting you have experienced over the last few months with 24/7 Connect. I truly believe that
we have created a superior advertising product... but it becomes invisible to you if reporting is unreliable."
The problems listed in the note include: monthly reports taking too long to generate because of connectivity
issues; reporting servers allowing logins but not generating reports; and reports showing different data when
run a second time.
"Developing new technology is not an easy task," David J. Moore, chief executive of 24/7 Media, told
UpsideToday. Moore acknowledges that there are problems, but he claims that only a fraction of the
customers have complained about the reporting inaccuracies.
Clients want to see what they have spent where, and what those expenditures are yielding, said Moore.
But the regularity with which that information is requested varies according to the company. This is why
Moore claims that not all the clients were even aware that there had been a problem with the reporting
data.
The company is now working to correct all of the technology glitches by tuning the databases to extract
data faster and accurately. Servers are being upgraded to add seven times the capacity, and the company
is enhancing the data reporting system to ensure that information is current and available immediately.
Work has already begun, and the company expects to have everything fixed within days.
The 24/7 Connect product provides data on the rate of return of a company's served advertisements and
allows the delivery and management of advertisements on the Web.
Doubts now confirmed
Certain observers said they have always had doubts about the company's ability to develop technology.
Some companies in the 24/7 Media network are still using AdForce, an ad serving technology developed
by rival company Engage (ENGA), when the 24/7's product launched earlier this year. "We've been
suspicious all along," said Credit Suisse First Boston's Petersen.
Developing technology is never easy, and 24/7 Media is the first to admit it. "We always try to
over-communicate," said Moore, referring to the mass email the company sent to clients.
"Speed is everything these days," said Moore about the client's need for immediate access to online
advertising results. "Technology always needs improvements."
Analysts are still trying to assess the extent of the problem and the impact that it will have on the company
as a whole.
Said Petersen, "They have a real problem, but it does not mean that they are out of the running in the
technology business but they are seeing the problems in real-time."
Louise Rosen covers Silicon Alley, digital publishing, media and advertising for UpsideToday. Reach
her at lrosen@upside.com. If you would like to submit a letter to the editor regarding this story,
email online@upside.com. |
