Neustar’s Q1 Media Intelligence Report Finds Seasonal Changes and Uptick in Ad Exchange Buying Drove 29-Fold Increase in

  Neustar’s Q1 Media Intelligence Report Finds Seasonal Changes and Uptick in
  Ad Exchange Buying Drove 29-Fold Increase in Conversions from Q4 2013 to Q1

Business Wire

STERLING, Va. -- June 10, 2014

Neustar, Inc. (NYSE:NSR), a trusted neutral provider of real-time information
and analytics, today released its Q1 2014 Media Intelligence Report (MIR),
revealing insights into the effectiveness of different online advertising
channels in reaching customers and increasing sales. This quarter, the report
found that overall conversions increased dramatically, occurring 29 times more
often than the previous quarter. The uptick was due in large part to a shift
in spending from social channels and portals to ad exchanges, a medium more
focused on direct response than the other channels studied.

According to Rob Gatto, SVP of Neustar Media and Advertising, “The jump in
conversions between Q4 2013 and Q1 2014 demonstrates that marketers are
learning where they can best reach their highest value customers and which
message resonates with them. Without activating real-time customer and media
intelligence, this would not be possible.”

The report analyzed more than 152 billion global ad events during the first
quarter of 2014. Key highlights include:

  *Social led in reach: outperforming exchanges by 37 percent. According to
    the Index, social has led in reach for the last three quarters,
    demonstrating the important role it plays in efficiently reaching users
    not found on other channels. Social also demonstrated the best
    cost-efficiency this quarter, indexing 350 percent below the industry
    average. An increased use of demand side platforms (DSPs) -- a more
    cost-efficient tactic than buying impressions directly from social
    providers --is most likely behind this trend.

  *Exchanges reached high-quality users:performing 121 percent above the
    indexed average. This trend is due in large part to seasonality. In the
    post-holiday quarter, advertisers scaled back social and portal spending,
    and more ad inventory become available on exchanges. As a result,
    exchanges served a larger volume of impressions, reached more users, and
    reached them repeatedly.
  *Offline first-party customer data performed better: CRM data performance
    across clients in Entertainment and Retail was between 32 and 107 times
    better than the advertiser average. This performance underscores the
    important benefits of bringing offline customer data online, including the
    ability to reach current customers online, more effectively segment
    audiences and extend reach.
  *Targeting top performers increased conversions by: 500 percent in Health,
    900 percent in Telecommunications, 2500 percent in Education, 2700 percent
    in CPG, 2900 percent in Entertainment, and 5500 percent in Retail. By
    identifying and targeting top-converting audiences versus spending your
    marketing dollars trying to reach audiences in general you can optimize
    your spend and increase ROI.

Using a set of algorithms designed by Neustar’s data scientists, the quarterly
MIR looks at the best digital advertising channels for reaching new and
high-quality customers, reducing ad spend that doesn’t reach the intended
audiences, driving customers’ actions and influencing their buying decisions.
Neustar’s MIR insights help marketers, brands and agencies determine where and
how to engage their prospects and customers using a personalized dialogue.

The MIR indexes the most prevalent digital advertising channels by cost, reach
efficiency, user quality and funnel attribution, giving marketers the tools
they need to better reach “the always addressable customer”. The report also
delves into the campaign types that drive the most impressions and actions, as
well as the results generated by leveraging offline customer data online, and
targeting top-performing audiences. To download the full Q1 Neustar Media
Intelligence Report based on AK Media Insights, click here.

About Neustar

Neustar, Inc. (NYSE:NSR) is the first real-time provider of cloud-based
information services and data analytics, enabling marketing and IT security
professionals to promote and protect their businesses. With a commitment to
privacy and neutrality, Neustar operates complex data registries and uses its
expertise to deliver actionable, data-driven insights that help clients make
high-value business decisions in real time, one customer interaction at a
time. More information is available

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Neustar, Inc.
Nicole Nolte, +1-571-434-5323
Public Relations Manager
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