HYBRID AND PERFORMANCE-BASED AD SPENDING SOARS: AFFTRACK REPORTS 79% INCREASE IN SPENDING AMONG TOP 50 INTERNET PROPERTIES, UNVEILS CONSULTING ARM



For Immediate Release
Contact:     CarrieAnn DeYoung
        708.358.2656
ca@afftrack.com

HYBRID AND PERFORMANCE-BASED AD SPENDING SOARS:
AFFTRACK REPORTS 79% INCREASE IN SPENDING AMONG TOP 50 INTERNET PROPERTIES, UNVEILS CONSULTING ARM

JANUARY 2002 – Chicago – Online ad spending may be down overall but spending on performance and emerging hybrid strategies is soaring according to AffTrack LLC, the leading revenue analytics and reporting solution provider for the online advertising and performance marketing sectors. The company announces an increase in performance-based sales revenue among their client base for the months of November and December 2001.

This is a significant barometer for the online ad world as the company's client roster includes many of the top 50 Internet properties such as RealNames, LookSmart and the Excite Network. While most Web properties and online publishers are suffering from a glut of inventory and decreased revenue from traditional ad sales, AffTrack's clients saw a 79 percent increase in sales revenues relative to the 2000 holiday season.

"Indeed, spending in the online ad business is not what it once was; however, innovative publishers and Web properties have moved quickly to embrace both pure performance and hybrid models – strategies involving a ‘blending' of traditional eyeball-oriented and direct response buys," says Scott McNulty, CEO of Afftrack. "Those who do not adapt to the dynamics of the Internet are sure to suffer and, perhaps, perish. Our clients are clearly ahead of the pack."

Gone are the days when advertisers raced to plaster their logos in as many places as possible. This year marketers are demanding more from publishers, portals and major shopping partners. According to the Internet Advertising Bureau (IAB), there was an estimated a 7.8 percent decrease in online ad spending for the year 2001. On the flip-side, these statistics point at the emerging importance of integrated, hybrid advertising models and innovative campaigns, as seen with AffTrack's clients.

"We will invest heavily in performance marketing strategies throughout 2002," says Fred Neil, VP and General Manager of Seta Corporation, the world's largest direct marketer of jewelry. "We seek to partner closely with top Web properties and other marketers - all who are motivated to generate revenue through performance and online commerce syndication arrangements."

"Performance-based marketing strategies are at the heart of our online marketing and advertising efforts," says Jeffrey Parnell, VP General Manager of E-Commerce at multi-channel direct marketer, Blair Corporation. "Because accountability and ROI are paramount, we are moving beyond simple affiliate programs - toward more sophisticated and more in-depth relationships with major portals, shopping properties, and other marketers, not to mention performance-based e-mail opportunities. So far, the results have been encouraging."

AffTrack is offering clients a comprehensive solution – sharing industry best practices and proven strategies with its clients through its relatively new consulting division. This area of the company is focused on providing insight on negotiating and structuring next generation "cost per action" (CPA) offers, hybrid advertising deals campaigns, incentive shopping and collaborative commerce arrangements.



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"Working with the leading names in online affinity, loyalty, search and publishing has placed AffTrack in a unique position," says president and founder Scott McNulty. "We have developed a wealth of knowledge in advanced revenue generation strategies. Spearheaded by Jeff Molander of Molander & Associates, our consulting division will work to transfer this best practice knowledge, thereby helping publishers to adopt emerging ‘hybrid' revenue models that go beyond the limitations of traditional advertising."


AffTrack LLC, a data solutions provider, is headquartered in Chicago, IL. Working with large entities AffTrack's core clientele is among Media Metrix's top 50 sites. Its concept and creation began in 1999, with a team of extremely experienced industry leading database and software professionals, spearheaded by President, Scott McNulty. For additional information contact www.afftrack.com or 888.453.4898.





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