Online Consumer Education Programs Outperform Traditional Media Advertising and Direct Marketing Programs

AUSTIN, Texas--()--May 22, 2006--

  New Study from Leading Research Firm Next Century Media Shows That Online Consumer Education Programs Are 29x More Effective Than Media Advertising & 5x More Effective Than Direct Marketing  



Powered, Inc., the leading provider of online consumer education programs for Global 2000 brands, today announced the results of an independent industry study showing that sponsoring online educational programs for consumers produces a far greater ROI than comparable marketing dollars spent on traditional media advertising or direct marketing. According to the study entitled Consumer Education Produces High ROI, consumers reached through online educational programs purchase significantly more and have a more favorable perception of the brand because of the experience.

"Online consumer education produces phenomenally high ROI for advertisers over traditional marketing campaigns," says Bill Harvey, report author and CEO of Next Century Media. "Our research found that consumers who participate in sponsored educational programs tend to view the sponsoring brand favorably, and are very likely to buy the company's branded products after the experience. This is consistent with the results of our other work on 'Gratitude Sponsorship' - giving consumers content they want with only a 'brought to you by' message, without advertising."

To determine the effectiveness of online consumer education as a marketing channel, Next Century Media analyzed surveys of nearly 200,000 consumers who participated in online education programs in 2005. Key findings include:

-- Consumers who complete courses are 29 times more likely to buy the sponsor's products compared to traditional media advertising;

-- Consumers who participated in online education programs are 5 times more likely to buy the sponsor's products compared to direct marketing;

-- 20% of consumers will purchase a product as a result of their experience;

-- 97% of students are satisfied with the experience;

-- 90% are likely to recommend the experience to a friend;

-- 94% have a more favorable perception of the brand because of the experience.

"Our clients have consistently told us they are extremely satisfied with the results of the programs we deliver for them, but this study proves online consumer education produces real ROI for advertisers and marketers," says Dave Ellett, Chairman and CEO of Powered. "Consumers have proven they prefer to be approached by advertisers in alternative ways that let the consumer engage on their own terms, rather than being bombarded with irrelevant, invasive messages."

Online education also reaches consumers that previously had little or no awareness of a company's brand - either not having been reached by traditional advertising, or having been unengaged by it. Almost two-thirds of respondents were unfamiliar with the sponsoring company's brand before participating in the educational experience.

To receive a complete copy of Consumer Education Produces High ROI, visit the Powered Web site at http://report.powered.com.

About Powered, Inc.

Austin-based Powered, Inc. is the market and technology leader in online consumer education. Powered provides a proven way for the world's largest brands to use online education to drive sales, build brand loyalty and deliver a significantly higher ROI than other marketing programs. Manufacturers, retailers, media properties and web publishers also rely on Powered to gain new insights into consumer attitudes and buying behavior. Powered clients include Atkins, BusinessWeek, Gateway, HP, P&G, and Sony among others. For more information, visit www.powered.com.

Contacts

Brady Public Relations
Emily Brady, 650-692-6107
emily@bradypr.com
or
Powered
Buck Krawczyk, 512-682-3200, ext. 262
buck_krawczyk@powered.com
www.powered.com

Contacts

Brady Public Relations
Emily Brady, 650-692-6107
emily@bradypr.com
or
Powered
Buck Krawczyk, 512-682-3200, ext. 262
buck_krawczyk@powered.com
www.powered.com