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To: Gutterball who wrote (69)5/6/1999 1:52:00 PM
From: Gutterball  Read Replies (1) | Respond to of 553
 
Jupiter: Online Ad Buyers Must Wake Up and Interpret the Data

Research Reveals that Only 22 Percent of Ad Buyers Utilize User Data Efficiently

NEW YORK--(BUSINESS WIRE)--May 3, 1999-- The potentially rich user data that attracts marketers to online advertising is exactly what those who make media purchasing decisions are ignoring, according to new research from Jupiter Communications. The report, delivered today to Jupiter's Strategic Planning Services (SPS) clients, reveals that only 22 percent of media buyers make optimal use of clickstream data--data that is critical to making intelligent, cost-effective marketing decisions.

''The Internet provides more data for media buyers to digest than any other medium, but the majority of such data goes either unused or misused,'' said Evan Neufeld, director of Jupiter's Online Advertising Strategies. ''The online media buy is all about improving advertising efficiencies. The ability to exploit the vast amount of clickstream data collected is an essential part of online media buyers' basic value proposition.''

Buyers need to break free of traditional media-buying patterns--which have a discrete beginning, middle, and end--and adopt a more fluid model. To successfully maximize online advertising efforts, Jupiter recommends that buyers employ a dual strategy: a continuous efficiency cycle and structured testing. A continuous efficiency cycle involves constant optimization, where ad units, media, and deal structures are perpetually evolving to better meet campaign goals. Whereas, structured testing provides a methodical, multitiered approach to finding the best strategy, the best messaging, the best offers, the best landing pages, or other components.

''It's not simply a matter of looking at the data, but of measuring the right thing,'' said Neufeld. ''For example, click rate is often an inaccurate predictor of conversion and buyers must base their optimization on metrics such as conversion rate, cost-per-customer, and lifetime value,'' added Neufeld. ''Click rate, in many cases, is a poor indicator of brand impact. However, our research shows that 50 percent of buyers said they used click-through as a metric for measuring brand impact. And less than 17 percent reported that they view brand intercepts as a valuable metric.''

Media optimization and structured testing are both necessary to increase efficiencies and improve return on investment, but there are still many roadblocks. More than 56 percent of media buyers say they feel overwhelmed by the amount of data they must analyze; only 11 percent of respondents said they feel the quality of the data they receive is highly accurate. ''No one said this would be easy,'' Neufeld concluded.

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. Established in 1986, Jupiter Communications, LLC is an independent, privately held company with offices in New York City and London as well as a joint operation in Sydney, Australia.

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Contact:

PR Contacts:
Diane Schreiber
Jupiter Communications
Tel: 212-780-6060 x208
E-mail: dianes@jup.com

Anna Svaldi
Edelman Public Relations
Tel: 212-704-8288
E-mail: anna_svaldi@edelman.com

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