·        Significant unsold inventory in the online advertising industry.

     ·        CPMs are down dramatically (down from an average of $40 in 1997 to below $30 this year).

              Click through rates have plummeted (down from an average 2-3% to 0.24% in December 2000).

     ·        Online consumer lacks interest in banners (online “billboards” represent a primitive form of new media adv

              ertising).

     ·        Meanwhile, industry trends favor more accountable forms of online advertising.

     ·        Online managers are increasingly dissatisfied with banner ads and flat fee portal deals:

·        8Need a way to measure ROI!

·        Firms are increasingly looking for ways to integrate offline with online.

     ·        Major advertisers increasingly compensating their agencies based on results rather than fixed commissions 

              (15% of billings).

     ·        Direct marketers are now moving onto the Web and bringing significant database and fulfillment experience online.