ReacTV's Prior Research Reinforced by Game Show Network and Ball State Interactive Advertising Study

ReacTV's Prior Research Reinforced by Game Show Network and Ball State Interactive Advertising Study

U.S. Patents Support ReacTV's Exclusive Position in 'Reactive' Ad Space

ST. PETERSBURG, Fla., April 4 /PRNewswire/ -- TV InterNetwork ReacTV(R) disclosed today that a recent advertising study by the Game Show Network (GSN) and Ball State University's Center for Media Design (CMD) supports prior research and a patent portfolio controlled by ReacTV. The CMD study examines the efficacy of interactive ads in a two-screen gaming environment -- precisely the environment within which ReacTV77 will embed its patented CRAV(TM) reactive and immersive ad pods when the TV InterNetwork launches on July 16, 2006. ReacTV77 is the first of ten reactive InterNetworks that ReacTV's founder and chairman, Frank S. Maggio, intends to launch in the next five years.

"We're not at all surprised by the Ball State study, but are excited about the timing of its release, so close to the July 2006 launch of our reactive gaming and ad InterNetwork," states Maggio. The Emory University Woodruff Scholar and former Procter & Gamble executive is also the inventor of the 2003 U.S. Patent, 6,606,745, for a process referred to as the CRAV Reactive Ad process -- a patent that has been licensed exclusively to ReacTV. CRAV is an acronym for "Consumer Rewarded Advertising Vehicle," and describes a wide range of ads, including TV, radio, print and Internet-streamed, that reward consumers for "verifying their immersion" in ad messages.

In the late 1990s, Maggio began studying the work of advertising scientists, including South African Erik Du Plessis, to determine if science and physiology supported the belief that a new form of "reactive" ad could outperform standard ads. His research revealed that various attributes of successful campaigns, including memory testing, the "multimedia effect," and likeability attributes, were all present in the reactive ad process. This provided further evidence that reactive ads would break through ad clutter, while lessening ad skipping.

Maggio coined the phrase "reactive" to differentiate his invention from "interactive" ads, positioning that broadcast ads are NOT interactive ads, when compared to the selectable, truly interactive ads found on the Internet, and supported by costly cable set-top box middleware. "ReacTV broadcasts ad pods, and then invites viewers to react to one or more questions about the ads through a second 'segregated network,' like the Internet or cell phones. To illustrate, I think most people would agree that American Idol would be considered more as 'reactive' content, than 'interactive' content. Viewers don't truly interact with the show; they react to a question about the show. That's the premise of ReacTV, except we invite and reward viewers to react to our ads."

Immersion verification, segregated networks, ad pods and follow-up CRM (Customer Relationship Management) applications are among the core attributes incorporated in U.S. Patent 6,606,745. At least seven other pending Maggio patent applications cite the CRAV process and are moving through the U.S. patent approval process, including a wireless color remote control that enables response to CRAV ads from the comfort of home.

In late 2003, ReacTV commissioned a study through six-time David Ogilvy Research Award winning Ameritest to test various efficacy aspects of reactive CRAV ads. Various genres of ads, including commercials provided by P&G and General Motors, were tested in ten U.S. cities across the country. "We wanted to see not only how well CRAV ads worked versus non-reactive ads, but also if there was a halo effect about brands that used reactive ads, and if so, did this affect all viewers, or only certain segments of the viewing audience," Maggio explains.

The study's findings were published privately in early 2004. They indicated that CRAV ads experienced significantly enhanced levels of probed brand recall, attention, and brand linkage when compared to non-CRAV ads. Additionally, the study found that among one group of viewers -- a group coined as "Reacters" by Maggio -- not only did CRAV ads work better in all key benchmark areas, but brands that used CRAV ads were more likely to be thought of as "higher quality," a "better value," "trustworthy," and "exciting."

Reacters are defined as people who have participated in any sweepstakes, contests, lotteries or game contest within the last 6 months. According to the Ameritest study, they make up approximately 37% of the television viewing population and have demographic characteristics deemed favorable by many advertisers, including advanced education, employment income and likelihood to have ISP and broadband within the home. ReacTV has been utilizing portions of the study as it has gained advertiser momentum on Madison Avenue, as well as in its presentations to MSO's targeted to carry the ReacTV network beginning this summer.

"The results of the 2003 Ameritest study essentially proved that our patent for reactive CRAV advertising would find a willing audience among advertisers and consumers -- ESPECIALLY Reacters. The 2006 CMD study appears to provide further support that Reacters will respond voraciously to ReacTV's CRAV ads," concludes Maggio.

The ReacTV network will feature 120 second CRAV ad pods every ten minutes "on the 7s" -- 7 after the hour, 17 after, 27 after, etc. -- with questions and prizes immediately following. ReacTV will also feature live, prime-time, nationally synchronized broadcast games exclusive to ReacTV, where Reacters at home comprise the entire audience and cash and prizes are awarded after every CRAV pod, and also after the end of each 30-minute game show. ReacTV77 expects to give away over one million dollars a day in cash and prizes within 18 months of its July 2006 launch. It will make its official trade show debut at next week's National Cable and Telecommunications Association show in Atlanta -- where, ironically, ReacTV's display is located immediately adjacent to GSN.

As to GSN's "new Interactive Pod" and "Power Play" elements, ReacTV's President, Noreen Parker, commented that, while open to creative methods to expand CRAV ads beyond ReacTV, no other network had yet licensed the CRAV patent to date, to her knowledge. "We would certainly entertain exploring ways other networks, including GSN, could utilize our CRAV technology -- provided it doesn't dilute the impact of ReacTV at this critical juncture."

About ReacTV:

ReacTV is America's first TV InterNetwork, delivering a reactive television and simulcast Internet experience, embedded with reactive advertising. The ReacTV gaming network allows viewers at home to compete for thousands of dollars in prizes each hour, simply by interacting with challenging games and rewarding ads. ReacTV has exclusively licensed the patented CRAV Reactive Ad System, enabling advertisers to create a new level of consumer awareness through reactive advertising. ReacTV ( http://www.reactv.com/ , and http://www.77.tv/ ) is owned and founded by real estate and new media magnate Frank Maggio, and is an entity of The Frank Maggio Companies.

Source: ReacTV

CONTACT: Media, Dawn Dixon, Communications Director, ReacTV,
+1-727-828-3688, ext. 305, or mobile, +1-727-776-0025, or dd@FrankMaggio.com

Web site: http://www.reactv.com/
http://www.77.tv/

-------
Profile: intent