Adaboy Offers a New Dimension in Internet Advertising: Targeted Ads in 3-D Environments.

Business Editors/High-Tech Writers

PITTSBURGH--(BUSINESS WIRE)--March 15, 2000

Adaboy, Inc. today introduced a breakthrough method of online marketing that places high-impact, three-dimensional (3-D) advertising within digital environments, such as video games and other cyber applications.

The U.S. Patent Office has granted Adaboy a patent (U.S. patent 6,036,601) for a new technology that provides an exclusive means to seamlessly insert logos, brand messages and product placement within the action of virtual worlds.

Unlike conventional Internet banner advertising, Adaboy's technology makes it possible to place ads that are customized and ever-changing to fit the demographics of the specific online user. Adaboy's 3-D "virtual billboards" appear spatially correct but do not disrupt the user's online activity as most Internet and computer advertising techniques do today. And advertisers pay only for the precise number of targeted users reached by the ads.

"This is the most radical step forward since banners began five years ago," said Craig Campbell, president and CEO of Adaboy. "Until now, Web advertising has been primarily limited to banners, which offer little in the way of measurable accountability for the marketer. The Adaboy model changes that, because messages are delivered in a customized fashion and advertisers don't gamble their marketing dollars."

To consumers, the benefit of the new model is that it has the capability of liberating them from certain Internet-related fees. The cost of the game or service becomes advertiser-supported, just as television and radio programming is sponsored by advertising revenue. In practice, that means Internet-based entertainment, such as video games, can become a totally free proposition for the user.

"Our initial emphasis will be in gaming, where the fit is a natural," said Campbell.

The online gaming community is currently estimated to be eight million users, and online games are growing at a rate of 66 percent a year. Even the latest console games are coming equipped with features for multi-player action over the Internet.

How Adaboy Technology Works for Everyone

For game developers and publishers, incorporating Adaboy advertisements into games involves simply installing a software module that enables the display of virtual billboards by the game's existing engine. It can be applied to all game genres, including action and adventure games, mass-market puzzle games, casino-style and card games, and "edutainment" products. Revenues generated by advertisers are automatically paid to developers each month, based on the number of game plays.

For the user, the online gaming experience will change only slightly - every minute or so, the player will view some form of advertising that will be integrated into the game in a natural way.

"It may be a billboard, a sign, a logo-placement on an item, much the same way we're presently exposed to advertising in the real world," said Campbell. The only information required of the user is age, gender and zip code and optional user-set preferences. User lists and databases will not be available for sale or use by others.

An extraordinary feature of the Adaboy experience is that it will be different and highly targeted for every user. For example, a 17-year-old boy playing a hockey game might see a specific soft drink ad on the perimeter of the ice, where the 24-year-old playing against him might see an appropriate automotive brand displayed.

Advertisers will also benefit from compelling advantages beyond the cost and reach benefits described. Unlike traditional banner advertising, which is primarily used for brand awareness and redirecting user-traffic to specific Web sites, Adaboy features a marketing research tool that will quantitatively measure change in brand awareness and purchase intent through pre and post surveys. Custom programs can link Adaboy advertising with banners, sweepstakes, prizes, samples, coupons and other promotions at the end of play for a cohesive marketing effort directly tied to quantitative business results.

The flexibility of the system also allows for customized geographic reach. For instance, even at the last minute, ads for a particular concert series can be timed and offered to targeted users in advance of where a group will be performing.

"We believe the Adaboy solution will become the premier technique for revenue generation for game producers and developers as games move toward computer and online platforms," said Campbell.

Beyond the Gaming Experience

Beyond gaming, other exciting Adaboy applications include virtual worlds and other 3-D environments in cyberspace. Such 3-D Internet environments will include e-commerce stores and shopping malls, chat areas and public forums, search engines and research tools, content sites and entertainment.

The flexibility of the Adaboy system applies in these cyberspaces, too. For example, an adult female who enters a virtual mall might see a targeted advertisement for a clothier. An adult male conversing in a 3-D chatroom, such as a virtual park, might see an airplane flying overhead towing a banner for a specific line of cellular phones.

"As with the video games, this type of advertising will not interrupt or slow down the experience," said Campbell. "There are endless and very cool possibilities for using Adaboy technology that will ultimately make the online experience far more compelling than it is today."

Considered to be an expert in the fields of virtual reality and 3-D environments, Campbell founded the company in 1996 as Virtual Motion, Inc. Based on its present focus, the company was renamed in 1999. Adaboy, Inc. currently holds several patents in the field of virtual environments. For more information, visit the Adaboy Web site at www.adaboy.com.

Note to editors: Adaboy's logo can be found at www.adaboy.com/news.html