January 26, 2001

Advertising agencies believe in the effectiveness of streaming media advertising and are encouraging clients to use streaming media ads. This is one of the key findings of the "Advertising Agency Streaming Media Awareness Study," recently commissioned by streaming audience measurement firm MeasureCast Inc., and completed by the Yankee Group. The study, based on interviews of 100 senior media department employees of traditional advertising agencies and interactive agencies, is being released this week. Other important findings include:

-- Nearly two-thirds of responding agencies have recommended streaming media advertising to their clients in the last 12 months and are likely to recommend its use in the next 12 months.

-- Over 90% of respondents expect that their clients that have already purchased streaming media advertising will do so again in the next 12 months.

-- Respondents consider streaming media advertising effective for both branding and direct response.

-- More than half of the respondents (56%) who previously purchased streaming media ads expect to spend more on streaming media advertising in the next 12 months.

-- The main obstacle to greater adoption of streaming media ads is client perception that the cost is too high.

"The streaming media Industry should be encouraged by the results of this study," said Ed Hardy, MeasureCast CEO. "Streaming is on the ad agency agenda. But to achieve success, streaming media, including Internet radio, must be advertiser-supported. Therefore, it is important that content providers educate advertisers on the power and benefits of streaming media ads."

"These study results support the tremendous opportunity for advertising agencies to work with clients to incorporate streaming media advertisements into their overall marketing campaigns," said Michele Pelino, Director of the Internet Market Strategies Planning Service at the Yankee Group. "A critical success factor is to develop streaming advertising campaigns that address the specific characteristics of the target audience."

A copy of the study results can be downloaded at http://www.measurecast.com/study/.

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