TFSM 24/7 Real Media (MM)

24/7 Real Media, Inc.: -- Recurring trend: Audience receptivity to BT tied to ad and site content -- Highlights of Key Findings: -- Recent retargeting campaign for Polaroid2Go.com generated 25% of sales and 50% of revenue from just 7% of overall ads served -- 24/7 Real Media's 'Women' and 'African American' Behavioral Targeting segments received the highest number of impressions served for a 12-month period -- 24/7 OnTarget BT impressions increased 50% in Q1 2005, doubled in Q2 2005, and, while they remained the same in Q3 2005, increased by 200% over the course of the year -- Click-through rates have increased more than 166% since 24/7 OnTarget's inception After qualifying and quantifying the results of more than 800 behavioral targeting campaigns on its 24/7 OnTarget Behavioral Targeting network over the past 12 months, 24/7 Real Media, Inc. (Nasdaq: TFSM) today released its Q4 2005 Behavioral Targeting Report - Year In Review, summarizing results, metrics and case studies over the course of a year from Q4 2004 through Q3 2005. Overall, the report showed that 24/7 OnTarget produced significantly better results for advertisers and publishers than other online advertising methods. 24/7 OnTarget impressions grew 200% over the course of a year, and overall click-through rates increased 166%. "Compared to a year ago, advertisers, media buyers and publishers are far more knowledgeable now about what behavioral targeting is, what it can do for an online campaign, and how it can deliver better financial returns to both sides of the ad publishing transaction," said David J. Moore, Chairman and CEO of 24/7 Real Media. "As we move into year two, we anticipate that advertisers and publishers will reap even greater rewards as audience segments are further refined, and they become more proficient at being able to focus their behaviorally targeted ads on content areas where high responses can be achieved." Retargeting Campaigns Delivered Impressive Return on Investment (ROI) According to the report, retargeting remains one of the most promising and effective set of tools in the BT arsenal. In a recent campaign for Fulgent Media, on behalf of Polaroid2go.com, which sells Polaroid imaging solutions and consumer electronics for businesses and consumers, retargeting accounted for 25% of sales and 50% of revenue, despite the fact that only 7% of the campaign ads were behaviorally targeted. In an earlier campaign for a popular seasonal retailer, retargeting increased an advertiser's conversion rate by 270% while lowering customer acquisition costs by 50%. The report states that much of the success of retargeting depends upon access to a large, diverse advertising network, such as the 24/7 Web Alliance, which greatly increases the chances for recurring audience interaction. 'Women' and 'African American' BT Segments Surge in 2005 The number of impressions that a BT segment receives depends on the nature of the campaign being run and the size of the segment being targeted. As expected, campaigns targeting "Techies" consistently generated between 12% and 18% of impressions each quarter. However, campaigns targeting 'Women' achieved the highest percentage of impressions served (greater than 20%). The 'African American' segment also achieved tremendous growth - despite not rolling out until the latter half of 2005. The segment captured nearly 20% of all impressions served in Q3 and averaged 12% of impressions overall for the year. The segment achieved above-average click-through rates, combined with modest eCPMs, making it an increasingly valuable demographic for advertisers and publishers. "The continued refinement of the taxonomies and methods used to create 24/7 OnTarget's behavioral segments, along with increased ad volume, has enabled the results for each behavioral segment to become more predictable, and thus allowed advertisers to better focus their behaviorally targeted ads on content areas where high responses can be anticipated," said Jack Smith, vice president, product strategy at 24/7 Real Media. "Behavioral targeting and audience segmentation will increasingly become even more powerful and sophisticated in 2006 and beyond, as marketers seek to further segment their target audiences through the use of different media, such as video and mobile devices, and branch out into new territories, such as brand building." Audience Receptivity to BT Tied to Ad and Site Content Another recent BT campaign for Basement, Inc. on behalf of Sugarshots followed a recurring pattern 24/7 Real Media had experienced over the past year: audiences are more receptive to behaviorally targeted ads when the ads do not contain content similar to the target site. For instance, BT ads targeting the 'Women' segment performed below average when served to sites in the Women's Interest vertical, but performed significantly better on other types of sites. "24/7 OnTarget demonstrated a clear ability to impact results during a behavioral targeting test 24/7 Real Media conducted for us on behalf of Sugarshots liquid sugar product," said Doug Schumacher, President and Creative Director of Basement, Inc. "The results of the 24/7 OnTarget campaign were both insightful and impressive, particularly within the 'Women's Interest' segment, where behavioral targeting generated a remarkable leap in performance over standard targeting methods." How to Obtain the Free Behavioral Targeting Report To obtain a free copy of the complete Q4 2005/Year In Review Behavioral Targeting Report, or view past reports, please visit http://www.247realmedia.com/infoform/resQ32005. About 24/7 OnTarget 24/7 OnTarget is 24/7 Real Media's state-of-the-art behavioral targeting solution that enables marketers to reach large-scale target audiences more efficiently. By leveraging non-personally identifiable data and delivering ads only to those Internet users most likely to respond, 24/7 OnTarget increases campaign performance and eliminates waste for advertisers, while increasing the value of inventory for publishers. 24/7 OnTarget operates within the context of the 24/7 Web Alliance, its global network of more than 850 Web sites that deliver more than six billion impressions each month. About 24/7 Real Media, Inc. 24/7 Real Media, a pioneer in interactive marketing and technology, targets and delivers audiences for publishers and marketers. Our customers generate increased revenue and profits through media and search services, coupled with one seamless platform of serving, targeting, tracking and analytics technologies. The company is headquartered in New York, with offices in other major U.S. cities, Canada, Europe and Asia. For more information, please visit www.247realmedia.com. 24/7 Real Media: Delivering Today. Defining Tomorrow. Caution concerning forward-looking statements: This news release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to changes in economic, business, competitive and/or regulatory factors. More detailed information about those factors is set forth in our filings with the Securities and Exchange Commission. In addition, the following factors, among others, could cause actual results to differ materially from those described herein: the potential for impairment of relationships with employees or major customers, loss of faith in Internet advertising, international risks, regulatory risks, and other economic, business, competitive and/or regulatory factors affecting the businesses of 24/7 Real Media. All information in this release is as of February 27, 2006. The Company is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. 24/7 Real Media is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC. These principles are designed to help ensure Internet user privacy. For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt-out of 24/7 Real Media cookies, go to: www.networkadvertising.org.