IAG Launches TV Ad Effectiveness System

  
Business Editors  
NEW YORK--(BUSINESS WIRE)--Dec. 10, 2001--Intermedia Advertising 
Group (IAG)--  
Backed by world's largest advertisers, including Coca-Cola,  
Unilever and Tricon, IAG launches first ever-daily syndicated 
  information about the performance of television ads within network  
programming  
Shareholder Group includes executives from Charter Communications, 
The Walt Disney Company, News Corporation, General Motors, The William  
Morris Agency, UBS Warburg and WPP  
Intermedia Advertising Group (IAG) has launched the first ever ad 
effectiveness system, which measures the performance of all primetime 
advertising on the major broadcast networks.  
IAG's system measures the performance of advertising at the time 
of broadcast on a daily basis addressing two of the most significant 
challenges facing advertisers today - declining attentiveness and 
increased demand for accountability. IAG has created the first ever 
complete, syndicated database of ad recall, understanding and 
likeability for the advertising industry -- a comprehensive database 
aimed at creating the standard for ad ratings.  
The IAG system is being developed with the world's biggest 
consumer brands, including Tricon (KFC, Pizza Hut, Taco Bell), 
Unilever and Coca-Cola. Using IAG data, accessible via the web on its 
TrendReporter(TM) software, advertisers and agencies can:   
--  pinpoint ad "wear-out" (the point at which an ad loses its  
effectiveness)  
--  understand how different ad creative works on individual programs  
and with specific demographic groups,  
--  target their ads toward the most effective shows and time slots,  
while their campaigns are still in progress.   
Better ads and ad placement means more powerful branding and 
message impact at a lower cost for advertisers.  
"This is a powerful new system which has the potential to 
dramatically increase accountability in the marketplace. In 
combination with other traditional measures, I think this product can 
make a significant difference in how advertisers measure the 
efficiency of their ad spending and increase ROI," said Carl 
Spielvogel, former Vice Chairman of IPG.  
Debbie Myers, Taco Bell's Vice President, Media, Entertainment and 
Licensing, said, "IAG has developed a system that provides a promising 
application to the way we measure the effectiveness of our television 
advertising. We're pleased with the results we've seen so far," said 
Debbie Myers, Vice President, Media, Entertainment and Licensing for 
Taco Bell Corp.  
The Industry Need  
IAG's offering has significant financial implications for 
advertisers, particularly in an environment characterized by 
continuing audience fragmentation and unprecedented demand for 
accountability by brand managers.  
Philip Guarascio, former vice president of Corporate Advertising 
and Marketing of General Motors, said: "Advertisers spend $50 billion 
annually to reach consumers via television - yet, they have very 
little information about which ads on which shows actually reach the 
target audience and have an impact. While I was at GM, we spent over 
$1 billion/year on TV ads, and had nothing that compares with IAG's 
system. I believe it will become known as a significant step in 
helping advertisers and networks understand their advertising and 
programming, and importantly, in this dynamic marketplace, help 
clarify the relationship between ads, content, attentiveness and 
sales."  
Currently, advertisers use a variety of copy testing and 
post-advertising survey methods, none of which actually measure the 
effect of the ads as actual viewers see them. With IAG's new 
syndicated data on ad performance, companies will be able to customize 
their creative messages, media planning, and media buying to achieve 
greater recall and message understanding by television viewers, which 
in turn will result in more sales.  
Changing viewer habits and declining attentiveness have created an 
environment in which only half of the television audience ever sees 
the ads. (They change the channel or simply leave the room.) Only 
about 20 percent of viewers who see the ads can recall the message, 
and less than 10 percent understand the message.  
Experienced Management Team  
Cheryl Idell, Chief Strategic and Research Officer of IAG, joined 
the company after 12 years at Initiative Media North America (formerly 
Western International Media), where she managed the Unilever account 
and oversaw their research and media systems development. Idell led 
the development of IAG's data collection and measurement systems, 
based on the needs of advertisers. Advertising Age Magazine has called 
her, "one of the most influential U.S. media thinkers."  
Brad Simmons, Unilever's Vice President of Media Services, said, 
"We are excited about the potential of this research tool because it 
was designed by Cheryl Idell, who we know as a person who really 
understands how to apply research in making spending decisions."  
Alan Gould and Kenneth Orkin founded the company in 1999 and serve 
as Co- CEOs. Mr. Gould's background is in advertising and research; 
Mr. Orkin's background is in entertainment and finance.  
IAG's Shareholder Group  
IAG's shareholder group, which are both advisors AND investors in 
IAG, is comprised of leaders in television, advertising, and finance 
and include:  


 
-   Lou Gonda, CEO, Lexington Ventures (founded, built and sold 
    multi-billion dollar International Lease Finance to AIG) 
 
-   Marc Nathanson, Vice Chairman of Charter Communications (founded, 
    built and sold Falcon Cable to Charter Communications for $3.5 
    Billion) 
 
-   Ambassador Carl Spielvogel, former Chairman and CEO Backer 
    Spielvogel Bates Worldwide, and Vice Chairman and a member of the 
    board of directors of Interpublic Group, Inc. 
 
-   Philip Guarascio, Former Vice President of Corporate Advertising 
    and Marketing, General Motors (Member, IAG Board of 
    Directors--responsible for the largest TV ad budget in the US for 
    12 years) 
 
-   Sandy Grushow, Chairman, Fox Television Entertainment Group 
 
-   Jim Wyatt, CEO, William Morris Agency 
 
-   Salil Mehta, SVP, Strategic Planning, The Walt Disney Company 
 
-   Gary Ginsberg, EVP, Investor Relations, News Corporation 
 
-   Blair Effron, Managing Director, Corporate Finance, UBS Warburg 
 
-   John Shaw, President, Jefferies & Co. 
 
-   Etienne Boillot, Managing Director, BlueLine Advisors 
 
-   WPP / Kantar Media Research 

    TrendReporter Results  
The TrendReporter, allows advertisers and media agencies immediate 
access to IAG data so that at any point in a campaign they can:   
-   run more ads that are proven to work  
-   spend their TV media budget in places where they get the highest  
return  
-   plan future ad campaigns on the basis of actual viewer  
attentiveness scores.  
How IAG Collects Data  
IAG collects data from a large user base of consumers who "play" 
fun, interactive trivia games about the TV shows that they watch on a 
separately branded entertainment Web site called RewardTV. These 
questions, written in the style and spirit of the show, test 
consumers' recall of both program and advertising content on network 
programming (ABC, CBS, NBC, FOX, WB, UPN).  
About IAG  
IAG, Intermedia Advertising Group, is the first company to offer 
daily syndicated information about the performance of television ads 
within network programming. IAG was founded in November 1999 by Alan 
D. Gould and Kenneth S. Orkin. For more information about IAG, please 
visit www.iagr.net. 
 
 
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