NHANCED TARGETING
Major Sites Must Ramp Up Targeting to Fuel Revenue Growth
08/12/98 -- NEW YORK, NY -- The growth of the Web advertising pie will be
increasingly dependent on the successful introduction of real targeting, according to
research released today by Jupiter Communications at its third annual Jupiter Online
Advertising Forum.
The research cites that the promise of highly targeted advertising is currently not being
met, and failure to do so could severely hinder future growth rates of the medium.
Jupiter's research found that the relatively high price of online ads compared with the
price of ads in traditional media is theoretically justified by targetability and interactivity.
Without real targeting, however, the potential of interactivity goes largely unrealized, as
demonstrated by flattening click-through rates, which now hover around one percent.
"The Web has long held this promise of being the ultimate one-to-one marketing
vehicle, but currently sites are often unable to provide advertisers basic demographic
data--age, sex, income--which is standard supporting evidence for charging higher
CPMs in traditional media," said Evan Neufeld, practice manager of Online Advertising
Strategies at Jupiter. "The current crop of deals between ad targeting technology
vendors, and major Web sites and other tech players should serve to accelerate the
development of targeting, but the time to move was yesterday."
In spite of the relatively undeveloped state of targeting, and the accompanying lack of
incentives to users to really interact with the Web as a medium, the report advises
major marketers to start spending aggressively now, rather than risk losing market
share and branding opportunity. In short, marketers must reckon with the Web as a
dynamic consumer media platform, but must demand higher levels of targeting that will
result in greater consumer interaction.
The third annual Jupiter Online Advertising Forum attracts more than 700 marketers
and publishers to explore the key issues in the online advertising industry. Keynote
speakers include Richard A. Goldstein, President & CEO, Unilever United States; Bob
Pittman, President & COO, America Online; Kevin Roberts, CEO, Saatchi & Saatchi
Worldwide; Patrick Naughton, CTO, Buena Vista Internet Group; and David Wetherell,
Chairman, President & CEO, CMG. Noted Jupiter analysts and speakers from
companies such as Excite, Microsoft, Bell Atlantic, Sears, Bristol-Myers Squibb, Volvo,
DoubleClick, Nielsen Media, GeoCities, Agency.com, McCann-Erickson, and others will
discuss issues of technology, creative, ad sales, ad management, branding, direct
marketing, and more.
Jupiter Communications is a new media research firm that helps companies make
intelligent business decisions about consumer interactivity. Focused exclusively on how
the Internet and other technologies are changing traditional consumer industries,
Jupiter's Strategic Planning Services (SPS) deliver a continuous flow of analysis,
primary data, and market projections. SPS offers companies investing in new
technologies a framework for realizing return on investment, both for new lines of
business in mainstream media, entertainment, commerce, and marketing, as well as for
Internet- and technology-based start-ups. Jupiter also produces industry seminars,
newsletters, and book-length research studies. Jupiter Communications, LLC,
established in 1986, is an independent, privately held company with offices in New York
City and London, England.
More detailed research and analysis on the online advertising industry can also be
found through Jupiter's Strategic Planning Services (SPS) reports. For more
information about SPS and other products and services, visit Jupiter's Web site at
jup.com.
Contact: Diane Schreiber, Jupiter Communications
Voice: 212-780-6060 x208
Email: dianes@jup.com
or
Contact: Anna Svaldi, Edelman Public Relations
Voice: 212-704-8288
Email: anna_svaldi@edelman.com |
