1) "24/7 Real Media's Interactive Marketing Experts Reveal Their Online Advertising Predictions For 2006."

2) "Amazon.com Customers Order over 108 Million Items Worldwide During 11th Holiday Season."

3) "Classified Ads."

4) "Tell Us What You Think!"

After a remarkable resurgence in 2005, the online advertising industry is now looking forward to the trends and developments likely to have the greatest impact on the industry's growth and direction in 2006. Interactive marketing experts at 24/7 Real Media, Inc. (Nasdaq: TFSM), an interactive marketing and technology pioneer, revealed their Top 10 online advertising and interactive marketing predictions for 2006 during Ad:Tech 2005 in New York.

Among the most remarkable revelations, 24/7 Real Media's experts predict that search engine marketing, which helped boost the entire online advertising sector in 2005, will reinvent itself as a lead-generation channel while continuing to drive significant advertising revenue. Podcasting, blogging and mobile applications will become more attractive to advertisers, as behavioral targeting becomes increasingly indispensable for delivering the right content to the most receptive audience.

"Thus far, 2005 has been a hallmark year for the online advertising industry, led by the explosive growth of the paid search market, and richer, more interactive and creative advertising facilitated by increased broadband penetration around the globe," said David J. Moore, chairman and chief executive officer of 24/7 Real Media. "We believe the momentum of the past 12 months is likely to continue in 2006, and our experts in media, search and technology are already anticipating the key trends and developments they believe will play a significant role in shaping the continued evolution of the industry in the year ahead."

1) Consumer-generated media will become increasingly attractive to advertisers

Podcasting, blogs and 'wiki' will continue to gain momentum and attract an increasing number of consumers -- both content creators and content users. All indicators point to consumer generated media becoming a promising 'ad spend' opportunity, particularly for advertisers looking to reach specific micro-communities.

Interactive advertising service providers seeking to capitalize on these opportunities will need to provide scale in both global advertiser acquisition and service delivery, and in data complexity - handling hundreds of thousands of sites with millions of transient visitors. New technologies will make ad delivery easier for publishers and advertisers, including filtering unsuitable content to protect advertisers from unwanted impressions. Better blog and audio/video search tools will increase traffic and dramatically improve relevance metrics.

2) Advertisers will continue shifting traditional ad spending to the Web due to increased Internet consumption and better targeting/reporting capabilities

The Internet has replaced the TV as the most sought after medium across different demographics, and time spent online continues to grow. This trend will enable Internet advertising to steal a greater share of advertising dollars away from TV networks. To illustrate this point, Google will sell more advertising in 2005 than any of the major TV networks or newspapers.

24/7 Real Media anticipates that in 2006, Internet advertising will continue along on the same trajectory that the cable TV industry traveled during the 80s and 90s. The key differentiating factor that will continue to fuel growth of Internet advertising is its transparency, flexibility and accountability, making it the ultimate marketing tool.

3) Advertisers, cable providers and interactive marketing experts will collaborate to address "The TiVo Effect"

In the past, TV advertisers knew that 50 percent of their advertising was wasted, but were unsure which 50 percent. With the proliferation of DVRs, and the inevitable commercial-skipping "TiVo Effect," advertisers suspect the waste is increasing, but have no real way to measure. Interactive TV could be the answer that advertisers are looking for - incorporating the creative bandwidth and storytelling capabilities of television combined with the real-time delivery and tracking abilities of the Internet.

Until iTV becomes a reality in the United States, TV advertisers will begin pressuring cable providers - many of whom now offer DVRs - to create an interim solution that addresses the TiVo Effect or suffer decreased future ad spending. 24/7 Real Media believes that the cable companies will turn to interactive marketing experts to replicate the successes they have achieved in delivering targeted messages online.

4) Brand advertisers will drive the next wave of growth for the paid search market

Even as performance- and acquisition-focused advertisers gravitate towards the direct response benefits of search, 24/7 Real Media experts expect to see a significant uptake in search from the major agencies and traditional off-line advertisers. This will be led, at least in part, by continued research and data into the branding benefits of search, studies into assisted and unassisted recall of brands based on participation in both display and search results in the same user session, the emergence of view-through data, as well as the tendency both from the engines and search engine marketers/agencies to bundle search messaging with display/affiliate/e-mail/other elements into consolidated media plans.

This will allow the search sector to continue its current growth rates, reaching a critical mass in terms of benefit and audience that will enable it to finally become more than just a speck on the "big agency" media schedule.

5) Best practices in localized mobile marketing will be perfected overseas in 2006

The explosive growth of mobile ownership and the emergence of novel mobile behaviors in India and China will far overshadow mature markets elsewhere in South East Asia. With low PC ownership rates, cell phone and TV will continue to dominate the consumer's interactive media experience. Less restrictive regulatory environments coupled with the introduction of current generation mobile infrastructure have created a thriving market for rich media mobile content and value added service providers.

Wireless carriers will soon deploy services with the ability to pinpoint local audiences and serve them targeted local advertising using enhanced, searchable "yellow pages" functionality. These markets will not only see the emergence of new use models, but also new business models. As a result, best practices in local advertising will be perfected in overseas markets long before they arrive in the United States. Interactive advertising providers with global reach and scale will benefit most from this trend in 2006, and be able to leverage these opportunities well before their landlocked peers.

6) Online advertisers will employ holistic targeting methods to deliver better results and reduce reliance on high-profile, high-CPM ad buys

In 2006, advertiser focus will be more on the audience itself and less on where or how the audience is captured. There is a nearly unlimited supply of ad impressions, but a limited number of internet users. With growing internet adoption rates, advertisers have gravitated to a handful of popular sites or portals in hopes of reaching their intended audience though this narrow tract of ad space.

Next year, advertisers are going to take a more holistic approach to reaching their audience. Rather than purchasing high-CPM ad buys on high-profile, heavily trafficked sites, advertisers will merge behavioral, demographic and geographic methods to generate better results across a wider range of niche sites. In addition, audiences will be segmented similarly to the offline market so that tried and true methods, perfected over decades, can be applied to the online world.

7) Technology and better data access will transform online advertising success to a formulaic equation

Online advertising will become a pure math equation in 2006 and see the emergence of a new "CPx" (Cost Per [variable]). Recently, there has been a refocus on Major League Baseball statistics to highlight on-base percentage over batting average as the best indicator of a hitter's impact. In the same way, online advertising will be driven by more strategic quantitative analysis across segmented audiences.

Media companies will have greater access to more finely tuned targeting methods that segment out audiences based on the most important variables. The new statistics will help advertisers and publishers to identify and influence audiences more efficiently and effectively. The ultimate result will be new models of how to approach advertising, and new ways of reaching consumers.

8) Japan will be the next frontier for paid search and interactive marketing

With an economy poised for dramatic expansion next year, Japan has the second highest number of Internet users and broadband users in the Pacific Rim after China, according to PricewaterhouseCoopers. 2006 will prove to be "the year of search engine marketing" in Japan, and the country's internet advertising sector will experience its strongest year of growth ever.

According to PricewaterhouseCoopers, Japan already has the second largest online advertising market globally, behind the United States, with revenues projected to increase nearly 20 percent to $1.7 billion by the end of this year. However, paid search is the area that is poised to show dramatic increases over the next twelve months, with the major traditional advertising giants in Japan all vying for a piece of the action.

9) Mobile carriers will adopt new ad models to boost revenue beyond usage

The next year will see mobile carriers begin to experiment with a variety of ad models and delivery platforms as they look to expand their revenue beyond usage. In addition, 24/7 Real Media experts anticipate that video ads will begin to appear on phones as mobile video usage increases to the approximately 6.1 million subscribers, reported by M:Metrics.

SMS will be utilized primarily as a customer relationship management (CRM) tool for advertisers to continue dialog with existing customers much in the same way email is currently utilized. Ad standards will also begin to shake out for WAP display ads through the efforts of the major carriers, service providers and mobile industry group, MMA.

10) Performance-based pricing models will demonstrate the true value of search engine marketing (SEM) as a lead generation channel

The majority of the market has left traffic arbitrage behind, and search engine marketing is more credible for it. "Value" arbitrage, however, has yet to be fully exploited to any significant extent. With the ability of sophisticated SEM tools to understand both the market price for inventory and the true value of that inventory to the advertiser, coupled with margin pressures on "managed services," 24/7 Search experts anticipate that SEM firms and agencies will more willingly embrace and participate in performance-based pricing models. This will transfer some of the performance risk to the operators, who must use their experience and tools to deliver the value they have long promised, and who will share in the return generated.

For the skilled SEM firm and tool developer, this will drive higher returns and closer client relationships, while maintaining transparency of the medium. For the savvy marketer, particularly in acquisition-based industries, this will transform the view of search from an advertising medium to a lead generation channel.

Amazon.com announced that the 2005 holiday season finished as its best ever, with the company's Holiday Delight-O-Meter surpassing 108 million items ordered for the first time. The 2005 holiday season also brought another single-day record with the Delight-O-Meter tracking more than 3.6 million items ordered, or 41 items per second, on Dec. 12th.

"To our customers around the world--thank you," said Jeff Bezos, founder and CEO of Amazon.com. "We are grateful to our customers for shopping with us this holiday season and we wish everyone a happy new year."

Worldwide 2005 Holiday Facts (Includes www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp, www.amazon.ca)

• Amazon.com shipped more than 99 percent of orders in time to meet holiday deadlines worldwide.
  
  
• On the peak day this season, Amazon's worldwide fulfillment network shipped over 2.7 million units.
  
  
• More than 600,000 gift certificates were ordered between Nov. 25th and Dec. 22nd 2005.
  
  
• Amazon.com shipped to over 200 countries.
  
  
• One of Amazon.com's most remote shipments was the Panasonic PVL552H VHS-C Camcorder with 4.0" LCD shipped to Napaskiak, Alaska

Amazon.com 2005 Holiday Facts (www.amazon.com only)

• If all of the tents sold in Amazon.com's Sports & Outdoors store were stacked on top of each other, they would top 30,000 feet, which is higher than Mt. Everest.
  
  
• The most expensive item purchased in Amazon.com's Jewelry & Watches store was a $94,000 pair of diamond earrings.
  
  
• Amazon.com sold enough running shoes to outfit nearly every participant in this year's Boston Marathon.
  
  
• The last order placed on Dec. 22nd in time for Christmas delivery contained 14K Yellow Gold Four Prong 4mm Square Sapphire Stud Earrings. The earrings were delivered to Albany, Oregon on Dec. 23rd.
  
  
• Amazon.com's hot holiday sellers (Nov. 25 through Dec. 22 based on units ordered) Video games were popular this year, and topping the list were Mario Party 7 for Gamecube, Sid Meier's Civilization IV for PCs, and Microsoft's Age of Empires 3 for PCs.
  
  
• Tops in video game hardware were the Game Boy Advance SP in Pearl Blue, the Sony PlayStation Portable (PSP) Value Pack, and the Electric Blue Nintendo DS.
  
  
• iPods ruled the holiday season in Electronics, owning the top three slots- the Apple 2 GB iPod Nano (Black), the Apple 30 GB iPod with Video Playback (Black), and the Apple 512 MB iPod Shuffle were the top sellers.
  
  
• In music, the top sellers included Amarantine by Enya, Christmas Songs by Diana Krall, and Born to Run: 30th Anniversary 3-disc set by Bruce Springsteen. The top-selling Sports & Outdoors items were the Diamond Gen IV- Rechargeable No Battery Forever LED Shake Flashlight, the Wenzel Nova Sport 6'x5' 2 person Dome Tent, and the Halex 64302 Alpha LCD Dartboard.
  
  
• The top-selling books were The Chronicles of Narnia Box Set (paperback) by C.S. Lewis, The World Is Flat: A Brief History of the 21st Century by Thomas L. Friedman, and Rachael Ray 365: No Repeats--A Year of Deliciously Different Dinners (A 30-Minute Meal Cookbook) by Rachael Ray.
  
  
• In the Tools store, the Black and Decker SS925 Storm Station All-in-one Rechargeable Power Source/Radio/Light, the Black and Decker ATM100 25' Auto Tape Measure and the Sheffield WH58009 Folding Lock Back Utility Knife were the top sellers.
  
  
• Top Software titles included QuickBooks Pro 2006 Financial Software for Small Business, TurboTax Total Tax Solution Deluxe 2005 with State (Win/Mac), and Adobe Photoshop Elements 4.0 (Windows).
  
  
• Top sellers in the Beauty store were philosophy candy cane shower and bubble bath, philosophy holiday rescue hot cocoa & marshmallow gift set, and the Caswell-Massey 10 Product Sampler.
  
  
• Jewelry was popular and the top sellers included a 20" Sterling Silver Eternity Cross Pendant, a Diamond Circle Pendant, and a Floating Heart Pendant with Diamond.
  
  
• Watches were also popular with the Invicta Men's Automatic Pro Diver S2, the Harry Potter and the Goblet of Fire, and Movado Women's Amarosa watches among the top sellers.
  
  
• In DVD, top sellers were Star Wars, Episode III- Revenge of the Sith, March of the Penguins (Widescreen Edition) and Madagascar (Widescreen Edition). The top-selling Kitchen items included the Calphalon Commercial Hard-Anodized 8 ½ Quart Saucier with Lid, the George Foreman GR10AWHT Champ Grill, and Riedel O Cabernet/Merlot Wine Tumblers.
  
  
• In Health and Personal Care, the Panasonic ER411NC Nose and Ear Hair Groomer, the Rayovac Sportsman LED Headlight, and Sonicare Elite 7500 Power Toothbrush were top sellers.
  
  
• Coats were the popular apparel item this year, with the Weatherproof Men's Microfiber Bomber Jacket and the Pritti Women's 10 Button Solid Short Peacoat topping the list, along with the Hue Women's Long Muk Luk Slippers.
  
  
• In shoes, the Adidas Men's a3 Megaride Running Shoe, Unlisted A Kenneth Cole Production Men's Groovy Nights, and Adidas Men's a3 Ultimate Power Training Shoe were top sellers.
  
  
• In Gourmet Foods, 2 pounds of Imported Chocolate Truffles from Winning Gifts and Flowers was the top seller, followed by a Ghirardelli Chocolate Holiday Tower from Amazon.com Gift Baskets and a Tower of Sweet Treats from Harry and David.

About the Delight-O-Meter

The Delight-O-Meter tracks the approximate number of items ordered from Amazon.com and third-party sellers at www.amazon.com, www.amazon.co.uk, www.amazon.de www.amazon.fr, www.amazon.co.jp, www.amazon.ca, as well as Amazon.com owned items, such as books, music and DVD/video products, ordered at Syndicated Stores domains (such as www.borders.com) and from Amazon.com's stores at www.target.com.

The Delight-O-Meter excludes certain items, including items ordered from www.joyo.com, Amazon gift certificates, items ordered through catalogs and items not owned by Amazon.com ordered through non-Amazon.com domains - such as www.target.com. The Delight-O-Meter is not adjusted for items ordered that are subsequently canceled or returned.

This year's Delight-O-Meter launched on Nov.23, 2005 with a count of over 33 million items ordered since Nov. 1, 2005. The Delight-O-Meter is updated continually, but lags actual items ordered depending on the item. The Delight-O-Meter should not be viewed or used as a predictor or indicator of revenue or other financial information relating to Amazon.com

 Amazon.com, Inc., (Nasdaq: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as beauty, health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden.

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4) "Tell Us What You Think!"

Dear friend, I would love to hear what you think of this issue of The Internet Marketing Profits^™ newsletter. And of course, if you have any suggestions for upcoming issues that you'd like to share with me, please send those, too -- just email me right away! And don't forget to check out the previous issues at the Internet Marketing Profits Newsletter Archive.

"Stay Hungry. Stay Foolish."

Valeriu S. Popescu, Editor and Publisher
The Internet Marketing Profits^™ Newsletter

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