Hong Kong, November 8, 1999
— In the keynote address made to an audience of over 200 Internet professionals at the Asian Internet Advertising and Marketing Forum at Internet World Asia@Hong Kong on November 4, 99, Mr Patrick Jonathan Wong, Managing Director of 24/7 Media Asia Limited, part of the NASDAQ listed 24/7 Media Inc. network, agreed to the prediction that the Internet advertising in Asia will experience exponential growth in the next two years.
According to Forrester Research, global Internet advertising revenue will grow from US$3.3 billion in 1999 to US$33 billion in 2004. The amount spent outside the US will grow from 15% to more than 30% during the same period. In another research by Goldman Sachs reviews that the aggregate Internet advertising market in Asia could be worth as much as US$1.5 billion by 2001 and will represents 5% of total advertising spending across all media.
Commenting on the growth potential for Asia, Mr Wong says, "Until online purchase gains widespread acceptance among the Asian community as a whole, website publishers and Internet companies in general are using the advertising model as their key revenue story. I'd like to refer to this model as the "chief revenue model" of the Internet. 24/7 Media is leading this model of generating revenue for our affiliate or member websites. Besides keeping our member websites happy, we also focus on extending our solid relationships with our Asian and Global advertisers and deliver their online advertising messages to a very targeted audience in the most cost effective way."
"If we look at the popularity of different media, the Internet is growing the fastest. According to a survey by Zenith Media, the conventional media from TV through to outdoor billboards are growing at a straight 1% per each year throughout the Asia Pacific region, excluding Japan, while the Internet is racing ahead at over 9%"
Mr Wong went on to say, " We are not in the research business and cannot comment on the accuracy of all those very exciting forecast. But from what we are experiencing first hand in our business is a monthly revenue growth of an average of 100% since we have started our operations in Asia in December 1998 which is not a forecast but a track record."
24/7 Media Asia offers a unique proposition that brings together advertisers and web publishers from Asia, Europe and the United States. Leveraging its global scale, the company creates customised interactive marketing and advertising solutions to benefit both parties. 24/7 Media Asia employs AdForce, the leading advertising management software, which segments viewer access to online advertisements, allowing the company to develop demographic databases for highly targeted media placements. This translates to minimum wastage and a true measurement tool for advertisers; a capability not available to traditional print and broadcast advertisers.
24/7 Media Asia, wholly owned by NASDAQ listed China.com Corporation, is the advertising component and one of the three components of the integrated portal strategy of China.com Corporation. At the end of the third quarter 1999, advertising revenue accounted for 40% of the total revenue of the Group and will become the main revenue stream before the end of next year. China.com Corporation is on track of being profitable by 2002 or 2003.
Mr Wong recognises that the Internet advertising industry is still in its infancy in Asia, but sees great potential for innovation. "Here we are still using the humble banner as our main vehicle. But the opportunities for message promotion are huge - we only have to look at the new technology emerging from the US and Europe to see the future. On page advertising, wallpaper, interstitials, superstitials, buttons, interactive games, contests and promotions are just the beginning of the new wave for Asia."
Mr Wong believes the rapid Internet penetration in Asia, the Greater China in particular, will bring great opportunities to this new advertising medium. "According to a recent research of International Data Corporation, the online population of both Taiwan and Hong Kong will be doubled in two years' time, reaching 4.4 million and 2 million respectively. The number of Internet users in China is also growing at a similar rate. Today, the total Greater China audience of 24/7 has already reached 6 million and we expect it will exceed 10 million in the Year 2000"
Mr Wong went on to say, "More and more companies are going to the Web in Asia - building cyber shop fronts to market their wares," he continues, "New content means new interest for new users - a new channel for advertisers to post their message. Due to the versatility that online advertising offers, online advertising companies like 24/7 Media Asia are building networks of affiliate or member websites to ride on this success in Asia. We have the Ad Serving Technology System to provide a total global advertising solution, coupled with the ability to target specific sites visited by specific users. Position this with our creativity to understand and applying different web technology and, most importantly, the ability to provide performance management, and we have a winning combination. Any campaign's performance can be measured in real time by the client, over the Web, and be fine-tuned as well."
Commenting on 24/7 Media Asia's unique selling proposition, Mr Wong boosts, "combining the operations in Asia, the United States and Europe, the 24/7 Media network expands to over 45 offices in 25 countries. In Asia alone, we now employ over 100 media professionals across 10 offices in 9 countires. Even the largest website in Asia cannot afford to maintain a selling force of such a scale to sell their web inventory around the world. At 24/7 Media Asia, our sales people have an average of 8 years' media sales experience. With this unique position, we focus on selling advertising and our member websites can remain focus on their core competence which is building their content to drive traffic and to attract audience to their sites. It is a win, win, win collaboration for all," he concludes.
About 24/7 Media Asia
24/7 Media Asia, a China.com Corporation company, delivers unparalleled Internet advertising and online direct marketing solutions for advertisers and Web publishers across the Asia region. Reaching a potential market of over 23.4 million Internet users in Asia (including Japan), its highly targeted ad-serving network includes Greater China, the ASEAN nations, Australia, India, South Korea and Japan and currently employs over 100 media professionals.
The 24/7 Media Asia network of over 300 Web site affiliates attracts a broad set of Asian advertisers and international companies interested in advertising in Asia. Over 300 leading global and regional advertisers and agencies have signed up with 24/7 Media Asia, including Sony Corporation, Mitsubishi Motor Corporation, Compaq, Microsoft, KLM Royal Dutch Airways, Ericsson, AT&T, Hewlett Packard, the Coca Cola Company, Samsung, Johnson & Johnson and Daewoo. 24/7 Media Asia is a wholly owned subsidiary of China.com Corporation [NASDAQ: CHINA] developed in cooperation with 24/7 Media, Inc. [NASDAQ: TFSM].
About China.com Corporation
China.com Corporation [NASDAQ: CHINA] is a comprehensive, pan-Asian, integrated Internet business providing a full rage of solutions that build, distribute and sell services for the Internet in Asia. China.com Corporation has a strong and innovative Internet-based business strategy which covers the full range of Internet services with its portal network (hongkong.com, china.com, cww.com and taiwan.com), Web-based e-commerce and e-solutions business (the Web Connection) and Internet advertising network (24/7 Media Asia). Today, China.com Corporation is committed to facilitating the development of the Internet in Asia, and has over 650 staff in 16 offices across 9 Asian countries.
About 24/7 Media, Inc
Reaching more than half of all online users in the U.S., 24/7 Media, Inc. is one of the largest Internet media companies. Through its global online advertising and direct marketing networks, 24/7 Media provides a full-suite of online media sales services to advertisers and Web publishers. Through its flagship networks, 24/7 Media represents more than 2.5 billion ad impressions per month on more than 300 high profile sites globally. In 1999, 24/7 Media acquired Sift, Inc., a leading e-mail marketing company, and ConsumerNet, a leading provider of e-mail marketing solutions and formed 24/7 Mail, an independent subsidiary of 24/7 Media. 24/7 Media also owns and operates 24/7 Profilz?, the first online co-op database of Web user profiles used to deliver targeted online banner and email campaigns. Based in New York, 24/7 Media, Inc. is a publicly traded company [NASDAQ: TFSM] with offices in 31 cities in 16 countries. For more information please visit www.247media.com
Issued on behalf of 24/7 Media Asia by Burson-Marsteller.
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