SYS-CON MEDIA Authors: Liz McMillan, Carmen Gonzalez, Zakia Bouachraoui, Roger Strukhoff, David Linthicum

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Ad Network Adoption Up 24 Percent Since 2008, According to New Adify Media Study

Branding Gets Significant Portion of Online Advertising Budgets

SAN BRUNO, CA -- (Marketwire) -- 02/02/10 -- Sixty-nine percent of media planners and agencies now use online advertising networks as part of their digital ad buys, representing a 24 percent increase in the past 18 months -- according to a new study conducted by Adify Media. The leading media planners and agencies that participated in the study also reported that branding has become the top priority for online campaigns as compared to direct response, where the industry began.

According to recent research from J.P. Morgan, display spending will rise 10.5 percent this year after a five percent dip last year. The previous display spending dip may be attributed in part to the industry seeking cost-effective reach; Adify Media's survey found more than two-thirds of its respondents use online advertising networks because of their cost effectiveness.

Targeting, transparency, and quality are the top three attributes that media planners look for in online advertising networks. Interestingly, creative capabilities were the least important attribute noted.

"Especially in light of the Dynamic Logic study that found that creative quality is 50 to 75 percent responsible for campaign success or failure, agencies must start evaluating the creative capabilities of networks," said Russ Fradin, president of Adify. "As the industry looks for better ways to engage, not just reach, their audience, brands need to focus on compelling creative that builds an ongoing conversation with consumers and placing it where consumers spend time."

Other key findings from the survey include:

-- More money is being allocated online each quarter:
   - 56 percent of respondents' budgets were more than $500k in 2008.
     73 percent were over $500k in 2009.
   - In 2009, 37.9 percent of the respondents spend between $1-5 million
     per quarter on online advertising, 15.2 percent of respondents spend
     $5-20 million per quarter, and 5.9 percent spend more than $20 million
     per quarter on online advertising.

-- Branding is a major focus for online ad campaigns:
   - 83 percent of respondents allocate 50 percent or more of their budget
     to branding vs. direct response.

-- The use of ad networks continues to grow:
   - 69 percent of media planners and agencies now use online advertising
     networks, compared to only 45 percent who were using ad networks
     regularly according to Adify Media's May 2008 survey.

-- Awareness of vertical ad networks (VANs) continues to grow as a way to
   reach niche audiences:
   - 72 percent are familiar with VANs versus 56 percent in 2008.

Adify Media's December survey was completed by 216 media planners, interactive marketing directors, and executives from top agencies including Carat, Mediavest, MPG, Ogilvy, OMD, Starcom, and Universal McCann.

About Adify Media

Adify Media is one of the largest mid-tail ad networks. Built on the Adify Network Builder platform technology that powers more than 200 vertical ad networks, Adify Media has unique access to over 15,000 quality mid-tail sites in networks built by top media companies. Adify Media reaches advertisers' goals by delivering creative and content with 100 percent transparency.

About Adify

Adify Corporation is a vertical ad network management and media services company that is an independent, wholly owned subsidiary of Cox TMI Inc., part of Atlanta-based Cox Enterprises.

Media Contact:
Corie Pierce
Horn Group for Adify
646-202-9758
[email protected]

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