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To: David Lawrence who wrote (2886)10/15/1998 8:41:00 PM
From: Cheeky Kid  Respond to of 32873
 
Database Marketing on the Web
wired.com

by
Craig Bicknell, craig@wired.com

If you've ever bought a computer or a modem or a piece of software online,
chances are pretty good that IntelliQuest knows who you are. Really knows.
Just bought a new car? IntelliQuest knows it. Married? Congratulations,
from IntelliQuest.
IntelliQuest is an Austin, Texas, market research firm. Every time you
register to buy a product online from any of the company's high-tech
clients -- a roster that includes all the biggies, from Microsoft to Intel
to International Business Machines -- you fill out a form that includes a
pre-checked box that asks if you'd like to receive information about
similar products in the future.

If you leave the box checked -- and IntelliQuest says 70 percent to 80
percent of people do -- the company will match your purchase data against
an enormous database of demographic and lifestyle information compiled from
telephone records, auto-registration, and other public sources.

The database includes 200 variables covering more than 200 million people
in 100 million US households. With demographic information in hand, the
company helps clients design new marketing campaigns.

"The thing that's really unique and cool about this is that we have vast,
specific detail about the majority of US households," says Dianne Stuckey,
vice president of strategic marketing at IntelliQuest.

That specific detail will soon help advertisers target new customers
online. IntelliQuest said Monday it would license its database to online
advertising firm 24/7 Media (TFSM).

24/7 sells advertising for three networks of Web sites that include AT&T
WorldNet, RollingStone.com, and FreeEdgar.com. All told, the sites in the
networks reach more than a third of all Internet users. The company plans
to combine its ad-serving technology with IntelliQuest's demographic
database to serve custom ads to specific surfers who visit the sites in its
network.

That could mean big money -- advertisers will pay a lot for a spot they
know will reach the desired audience.

"I can say to an advertiser, 'I'm gonna sell you men age 18 to 34 who make
over $100,000 a year who just bought a car in the last six months and are
getting ready to buy a house," says 24/7 CEO David Moore.

Here's how it works: When you register to buy a product with one of
Intelliquest's clients, and "opt-in" to receive marketing material in the
future, IntelliQuest will insert a small tag of identifying data, called a
cookie, into your browser. Thereafter, when you visit one of the sites in
the 24/7 network, 24/7's Adfinity ad-serving software will deliver an ad
tailored to your demographic profile. 24/7 will also match registration
data from participating sites in its network with Intelliquest's database.

24/7 will track the movements of specific surfers, and can then supply
IntelliQuest with online surfing habits to supplement its demographic
information.

"We'll be able to find out that males 18 to 34 that drive a brown car are
interested in certain types of Web sites," says Stuckey. "It will allow us
to match online behavior to the offline world."

The companies expect the service to debut in early 1999, and hope to have
10 million to 15 million active profiles by the end of the year.

All this may be fantastic news for both advertisers and Web sites that make
money selling ads, but it could send chills down the spines of surfers
concerned about privacy.

24/7 and IntelliQuest know it. The companies say personal identifying
information like name and social security won't be included in the
profiles. They'll know what you are, but not who. Both insist they will
take great pains to insure the integrity of the data, and will adhere to
strict guidelines advocated by the Direct Marketing Association.

"Consumers have to be able to opt-out," says Moore. "Anything covert is
unacceptable. All this is overt. People who register understand exactly
what we're doing."

Stuckey added: "It's got to pass my own can-I-sleep-at-night test before I
pass it on to anyone else."