Avenue A / Razorfish Attributes $735 Million of Online Spend to Vertical Properties and Search Engines

Media Billings Distributed across More Than 1,800 Web Sites as Consumers Personalize Experiences on Entertainment and Social Network Sites

SEATTLE – In its fourth annual digital outlook guide for marketers and advertisers, Avenue A | Razorfish, one of the world’s largest interactive agencies and buyers of digital online media, reports that domestic advertising media billings for the agency grew to $735 million on more than 1,800 web sites in 2007, up 36 percent from 2006. Publisher web site spending slipped to 19 percent of billings, down from 24 percent in 2006. Register to receive the 2008 Digital Outlook Report and visit Jeff Lanctot’s blog to stay informed about media trends throughout the year.

“Last year was an indicator that marketers must wisely invest their digital dollars across a broader range of web sites to keep up with the everywhere customer,” said Jeff Lanctot, editor of the report and senior vice president of Global Media at Avenue A | Razorfish. “Customers don’t live on a handful of web sites or portals anymore. Advertisers still value large sites, but they realize the web presents a seemingly endless number of advertising options.”

The broad range of vertical web sites that saw increased traffic, included entertainment sites and those focused on video sharing, gaming, music and social networks. Growth on search engines was attributed to improved flexibility for testing advertising relevance, targeting and campaign management. The agency also continued to consolidate its spending in the ad network category with the five largest online ad networks, as billings increased to 71 percent in 2007, up from 63 percent in 2006.

The comprehensive, eight-chapter report provides commentary, predictions, research and recommendations from agency thought leaders and discipline leads across the world to help marketers improve the effectiveness of online campaigns. Specific insights from the report include:

* Social Influence Marketing – examines how communities will change the way marketers do business in 2008 and whether consumers will be compensated for their social prowess.

* Targeting & Measurement – explores effective ways to move beyond behavioral targeting tools that work in silos.

* Search Gets Strategic – provides recommendations for how to implement multi-media search across video and rich media.

* Technology Changes the World – shares inspiring examples of how marketers are using technology to become more socially responsible and accountable.

New additions to the report this year include conversations from the “Connected Class,” a sampling of 18-34-year-olds who share anecdotes of how they engage in digital media. We believe this demographic will help predict future digital behavior. The agency also shares suggestions from the leading search providers about how marketers can be successful at Local Search and engaged Forrester Research Inc., to include an excerpt from its upcoming book, “Groundswell,” which explores the way social technologies are changing the world.

Other notable highlights include the “publisher of the year” distinctions, media trends to watch, emerging opportunities in mobile, video and rich media and commentary from Clark Kokich, CEO, Avenue A | Razorfish about what the marketer of the future will look like.

Lanctot concluded, “Consumers aren’t for sale. As digital media continues splintering in thousands of directions, the marketer who follows their consumer and engages with them in thoughtful, personal and meaningful ways will win.”

About Avenue A | Razorfish

Avenue A | Razorfish is one of the largest interactive marketing and technology services agencies in the world. The company helps industry leaders such as Starwood Hotels, Kraft, Ford Motor Company and Carnival Cruise Lines use digital channels to acquire and service customers. Avenue A | Razorfish’s full suite of digital offerings includes online advertising, Web site design and development, email and search engine marketing, emerging media strategies, and enterprise portal development. Its award-winning client teams have a great understanding of customer needs and provide solutions through distinct business disciplines, which include: analytics, strategy, technology, media, creative design and user experience. Avenue A | Razorfish has offices in markets across the United States, and global operations in Australia, China, France, Germany, Japan and the United Kingdom. Visit www.avenuea-razorfish.com for more information.