Industry Outlook
Companies Report Success With Email Marketing
Consumers Use Web for Entertainment Decisions
Inside The Excite Network
iWon 2002 Annual Winner
Exclusive Partnership with Match.com
My iWon Builds Loyalty
Exciting Marketing Opportunities
Channel Sponsorship
Campaign Optimization
Sweepstakes Administration
Have You Heard?
Sixth Most Trafficked Property
A Third of US Households Banking Online
Internet Drives One in Three New Car Sales
Contact Us
Online Media Kit
About Exciting News
May 6, 2002

While the words "profit" and the "internet" have not been used together much in the past, happily, they are being spotted in the same places a little more frequently lately. In its annual State of the E-Commerce Industry Report, the Direct Marketing Association reports that 55% of the direct marketing firms doing business online are making a profit from their Web presence, either from direct online sales or from the use of information gathered from visitors. And those who are not currently seeing positive returns are optimistic, with 17% estimating profitability in 2003.

At The Excite Network, we have also become very familiar with the P-word. We've just completed our second consecutive quarter of profitability and we're continuing to move ahead at full speed.

Read more about the Direct Marketing Association's report in this issue of Exciting News, and we also invite you to visit the new
Excite Network Online Media Kit, a complete resource for information about advertising on iWon and Excite, including audience research, details on advertising and marketing programs, and technical specifications.

Regards,

Michael Newman
SVP, Sales
The Excite Network
Companies Report Success With Email Marketing
In a survey of 700 companies by the Direct Marketing Association in conjunction with the Association for Interactive Marketing, two-thirds of the companies reported increases in 2001 sales as a result of email marketing, with 15% of their total online sales resulting from email based promotions last year. Additionally, 63% of surveyed companies placed email marketing as their most effective customer retention tool, and 37% described email as an effective customer acquisition tool.

Companies are dedicating resources to support email marketing, with two-thirds of companies managing email marketing in-house. 13% of all companies allocated their total marketing budgets to email marketing. Small companies tend to allocate more of their budget to email marketing:
  • Small companies 21.4%
  • Medium companies 7.0%
  • Large companies 13.4%
While the majority (two-thirds) of companies use click-throughs to measure the effectiveness of email campaigns, companies are also turning to other metrics:
  • Unique links 54%
  • Embedded HTML code 40%
  • Unsubscribes from targeted email lists 29%
  • Coupon codes 27%
  • Banner ads 14%
Source: Direct Marketing Association - State of the E-Commerce Industry Report 2001-2002
Consumers Use Web for Entertainment Decisions

While television ads and word-of-mouth are the primary sources consumers use to determine which TV shows or movies to watch, the Web also plays a key role in the consumer's decision-making process. Nearly 25% of online consumers regularly visit TV show or movie websites when they want to find something to watch, and 20% of online consumers go online to read reviews of television shows and movies to help them decide what to watch.

30% of North American online consumers go online to research television shows:
  • Visit television show website 23%
  • Read online reviews for TV shows 18%
  • View online ads for TV shows 13%
34% of North American online consumers go online to research movies:
  • Visit movie website 24%
  • Read online reviews for movies 23%
  • View online ads for movies 11%
Source: Forrester Research - Retail & Media North America Consumer Technographics April 2002
iWon Announces $1 Million 2002 Annual Winner
Robin Dyche from Federal Way, Washington is a typical iWon consumer. A regular visitor since August 2000, Robin frequents iWon to read the news, search the Web, take the daily survey, catch up on celebrity gossip, and check the weather. But April 19th was anything but typical for Robin when iWon announced on Hollywood Squares that she was the winner of the third annual prize. With $1 million in hand, this mother of 13 year-old daughter Amber plans to "...give Amber a better life...move to another house, buy a mini-van to drive her and her friends to the mall and, most importantly, ...send Amber to college."

Match.com and The Excite Network Announce Exclusive Distribution Partnership
The Excite Network and Match.com have announced an exclusive strategic distribution partnership. A global leader in online dating with more than 3 million members who have profiles currently posted on the site, Match.com will provide content and advertising on the Excite Relationships channel and will be the sole provider of online dating services for iWon.


Find a Date on iWon
Meet Your Mate on Excite

New Personalization Features on My iWon Breed Loyalty
With one of the highest registration rates on the Web, iWon already offers consumers highly personalized content. But we've taken it even one step further with the latest release of My iWon. In addition to enhanced speed and performance, the new My iWon includes 20 new loyalty features to keep consumers coming back for more including:
  • Customized colors and 140 visual themes to match every interest, personality or mood.
  • Enhanced layout options that enable consumers to arrange the information on the page to meet their individual needs.
  • More news choices in 50 categories from advertising to automotive.
  • More personalized content including movie showtimes, favorite photos, local sunrise and sunset, and enhanced TV listings, just to name a few

Get Hooked on My iWon
Exclusive Ownership Opportunity with Channel Sponsorship
A Channel sponsorship brings together the benefits of content targeting, the ability to surround the consumer, and total exclusivity. For a month or more, advertisers on iWon and Excite can have total ownership of a Channel. With complete exclusivity, advertisers have a dominant presence in the Channel - owning all ad units on every page including standard banners, skyscrapers, and interstitials. With no competitive advertising, advertisers completely surround consumers for the ultimate branding opportunity.

Automated Campaign Optimization from The Excite Network
One of the promises of the Web has long been the ability to instantly gauge ad performance and make adjustments on the fly. Unfortunately, blessed with lots of data, but little time or resources for analysis, most marketers are unable to capitalize on this opportunity. The Excite Network now offers marketers an automated solution with Darwin, a proprietary campaign optimization tool. Darwin analyzes ad performance for you - monitoring click-through rates twice a day and rotating creative to maximize results. An effective tool for advertisers with click-through goals and metrics, Darwin has improved click-through rates from 15% to over 100%.

To take advantage of Darwin at no additional cost, contact your sales manager.

The Excite Network Offers Expertise in Sweepstakes Administration
As the leading loyalty platform on the Web, The Excite Network has managed thousands of sweepstakes totaling more than $50 million in cash prizes paid out to over 264,000 winners. An experienced leader in promoting and administering sweepstakes, The Excite Network is extending this expertise to marketers with a Sweepstakes Administration program. With this program, The Excite Network will manage all aspects of an online sweepstakes, from concept to fulfillment. All details are handled by The Excite Network, from legal issues to prize procurement and fulfillment.

In addition to full backend service and administration, the program offers clients ultimate flexibility. The Excite Network is experienced working with any type of sweepstakes format, prize, and time period. Marketers can promote the sweepstakes through all media vehicles, both offline and online, and easily leverage The Excite Network audience of 17 million responsive consumers.
Sixth Most Trafficked Property
The Excite Network is the sixth most trafficked property on the Web, generating 2.1 billion page views each month.
Source: Nielsen NetRatings 3.02

A Third of US Households Banking Online by 2005
The number of US households banking online and/or paying bills online will grow from 20% in 2001 to 33% by 2005.
Source: Financial Insite - Online Banking Report

Internet Drives One in Three New Car Sales
Internet-generated new car sales will jump from 13% of total new car sales this year to 32% in 2006.
Source: Jupiter Media Metrix
Eastern Regional Sales
Mike Alvarez
Direct: 917-522-2009
Fax: 917-522-2080
malvarez@excitenetwork.com

Phil Carl
Direct: 917-522-2078
Fax: 917-522-2080
pcarl@excitenetwork.com
535 Fifth Avenue
Second Floor
New York, NY 10117

Midwest Regional Sales
Michael Claffey
Direct: 312-279-3301
Fax: 312-321-9739
mclaffey@excitenetwork.com
444 N. Michigan Avenue
Suite 510
Chicago, IL 60611

Northwest Regional Sales
Charles Whittingham
Direct: 415-633-8489
Fax: 415-633-8444
cwhittingham@excitenetwork.com
550 Fifteenth Street
Suite #3
San Francisco, CA 94103

Southwest Regional Sales
Jeff Apodaca
Direct: 310-254-2181
Fax: 310-473-9047
japodaca@excitenetwork.com
10990 Wilshire Boulevard
Suite 460
Los Angeles, CA 90024

For more information about advertising opportunities on iWon and Excite, visit The Excite Network online media kit at: www.excitenetwork.com/advertising
Exciting News is a monthly email newsletter, designed to help advertisers keep up with the latest in industry research and new marketing opportunities on The Excite Network.

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