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.
IAG Launches TV Ad Effectiveness System
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