Avenue A / Razorfish Attributes Growth to Portals and Social Network Sites as its Online Advertising Spend Increases to $542 Million

Third-Annual Digital Outlook Report Suggests Web Focus Areas for 2007

SEATTLE--(BUSINESS WIRE)--March 12, 2007--In its annual digital outlook guide for marketers and advertisers, Avenue A / Razorfish (NASDAQ:AQNT), the country's largest interactive agency and largest buyer of digital online media, reports that domestic advertising spend for the agency has grown to $542 million.

"Unlike traditional marketing, the impact, reach and accountability of online marketing resulted in strong growth in 2006 for many Web publishers," commented Jeff Lanctot, editor of the report and senior vice president and general manager at Avenue A / Razorfish. "Long-time digital leaders like Google, Yahoo! and MSN enjoyed an aggressive increase in advertising spend, as did resurgent properties like AOL and new destinations like social networks and blogs."

Highlighted in the 140-page, 10-part report is insight that describes where marketing dollars are being spent online, key trends that will impact marketers in 2007, and new quantitative research on best practices for measuring the effectiveness of advertising campaigns.

Where's the Money?

Avenue A / Razorfish's 2006 online media billings were up 30 percent from 2005, and up 73 percent from 2004. While search continued to grow, display media outpaced search marketing in 2006. As large traditional marketers continued to shift spending toward digital channels, brand-friendly rich media and video ads proved effective.

A Demographic to Watch

The report also includes qualitative research on the "Digital Class," a study of the online behaviors of 18 - 24 year olds in the US, UK and Canada. "The results confirmed what we believed to be true from the popular social sites, but it goes beyond self-expression," said Lanctot. "This population lives and breathes the Internet, and seeks differentiation through media, music and online networking. For marketers seeking to engage with the Digital Class, it's critical to have a clear understanding of how this group uses the Internet and other digital channels, as well as how they view marketing. The differences are stark."

Accountability

In contrast to traditional media channels, the online media environment allows digital advertisers to track and measure marketing campaigns more effectively. Through customized attribution tools, advertisers can improve campaign evaluation, identify new profitable Web sites and integrate their Web media and search strategies - which can yield better return on investment (ROI) analysis and improve conversion rates.

Also included in the report are the "publishers of the year," an evaluation of new technologies, best practices for creative online Web design, and a framework for assessing emerging media channels, such as video and mobile. Two new additions this year include an Op-Ed section which dives into the trends and technologies that will lead the digital revolution and a Q&A-style dialog from experts at Avenue A / Razorfish in the US, United Kingdom, China, Australia and Germany. They answer questions marketers ask, such as, "How can I create a successful viral campaign? What are the pitfalls to avoid?"

The report summarizes the top five things every marketer should know to build and create successful online campaigns. Lanctot concludes, "If the marketer's goal is to inspire customers, building a better Web site that meets customer needs is one thing. Engaging consumers beyond the Web site by connecting with them in their world on their terms is the way to build a long-term relationship."

About Avenue A / Razorfish

Avenue A / Razorfish is one of the largest interactive marketing and technology services agencies in the world. The company helps industry leaders such as Kraft, Dell, The New York Times and Starwood Hotels use digital channels to acquire and service customers. Avenue A / Razorfish's full suite of digital offerings includes online advertising, Web site design and development, email and search engine marketing, emerging media strategies, and enterprise portal development. Its award-winning client teams have a great understanding of customer needs and provide solutions through distinct business disciplines, which include: analytics, strategy, technology, media, creative design and user experience. An operating unit of Seattle-based aQuantive, Inc. (NASDAQ:AQNT), Avenue A / Razorfish has offices in markets across the United States, and global operations in Australia, China, France, Germany, Japan and the United Kingdom.

In the company name Avenue A / Razorfish noted in this news release, a pipe symbol appears between Avenue A and Razorfish. This symbol may not appear properly in some systems.

Posted: March 2007


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