NBC-Interactive, 24/7 Sign TV-Internet Sales Pact

24/7 Media Inc. and NBC-Interactive Neighborhood Wednesday signed a three-year agreement to create a nationwide advertising sales force focused exclusively on the convergence of television and the Internet at the local level.

The companies said the venture will combine NBC’s on-air promotion strength
with 24/7 Media’s expertise in online advertising sales to build fully
integrated multimedia sponsorship programs for major market local advertisers.

Financial arrangements were not disclosed, but as part of the deal, NBC is
acquiring an unspecified equity interest in 24/7 Media.

Initial launch markets include NBC-owned and operated stations in New York,
Los Angeles, Chicago, Washington, D.C., Dallas and San Diego.

Plans are to add an 14 broadcast more station markets during the third
quarter. The partnership will also deliver ad sales consulting and regional
representation services to the more than 100 NBC stations that are currently
affiliated with NBC-Interactive Neighborhood, which is a localized Internet
community guide service customized for more than 100 local NBC stations.

24/7 Media will recruit, train and staff sales and support personnel who will
operate out of both the NBC stations as well as in 24/7 Media’s regional
offices. 24/7 and NBC-IN will develop cooperative advertising packages that
leverage NBC local television with the direct response, data mining and
marketing functionality of NBC’s local station Web sites.

“We are responding to the demands of this new Internet ad-sales market with
novel and creative solutions that keep NBC in a leadership position among
traditional media companies on the Internet,” said Martin J. Yudkovitz,
president
of NBC Interactive.

“In the local market, we will expand our on-air
relationships to include e-commerce, classified advertising and other direct
marketing Internet programs that turn viewers into customers.”

David J. Moore, chief executive officer of 24/7, said that NBC is the best possible partner for
the company’s foray into local markets.

“The Internet is capturing an
increasingly significant portion of media dollars, and this is a major first step in our integration of Internet advertising into multimedia packages,” he said.

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