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ATG Announces First-Ever Marketer-Driven A/B Testing Solution

ATG Announces First-Ever Marketer-Driven A/B Testing Solution

Business Editors/High-Tech Writers

CAMBRIDGE, Mass.–(BUSINESS WIRE)–March 15, 2004

New ATG Campaign Optimizer Enables Business Managers to Easily

Test, Measure, and Analyze Online Customer Response

and Buying Habits Without Costly Web Development

ATG (Art Technology Group, Inc., NASDAQ: ARTG), the software provider behind the Web’s richest customer experiences, today announced ATG Campaign Optimizer, an innovative A/B testing application. ATG Campaign Optimizer allows business managers to simultaneously test multiple promotions, products and creative, so that they can know for sure which choice best maximizes conversions and revenue.

“ATG Campaign Optimizer takes the traditional method of A/B testing that was typically difficult to manage and makes it easy enough to put into the hands of a business user without requiring IT support to operate and maintain it,” said Robert Lerner, senior analyst at Current Analysis. “Empowering business users with this type of marketing solution is critical as e-business matures. Maximizing conversion rates, and in turn revenues, is what counts – and what wins in e-business.”

Through an easy-to-use graphical interface, ATG Campaign Optimizer puts the power of testing, measuring and analyzing promotions, products, and content in the hands of the business user. ATG Campaign Optimizer allows them to simultaneously test multiple site elements, for example, testing images and price points at the same time. It also enables business managers to test more than two choices – in essence, it allows A/B/C/D… testing. The marketing manager or other business user has complete control over how visitors are split between choices, which visitors are tested, which are control groups, and when tests start and stop – all without any programming or intervention by the IT department. No other e-commerce solution on the market offers this capability.

“ATG already has the best comprehensive e-commerce solution on the market, as evidenced by reviews from analysts and our repeated wins in head-to-head competition,” said Cliff Conneighton, senior vice president of marketing, ATG. “Our new ability that allows business managers to easily conduct robust testing, measurement, and analysis of product and service marketing campaigns really changes the game completely.”

Companies such as Intercontinental Hotels and Finish Line, both ATG customers, already use A/B testing capabilities (sometimes called split testing) as a way to reduce the costs of marketing and merchandising while creating a more compelling shopping experience for their customers. When implemented, split testing can help identify minor changes to a site’s promotion or pricing that can help drive major changes to conversion rates. ATG’s solution is not only driven by the business user, but it is quick and easy to use, significantly reducing the time to develop and analyze each test.

“The ability to capture measurable data on customer interactions enables us to continuously improve our merchandising, marketing and sales efforts,” said So Young Park, director of e-commerce at A&E Television Networks. “Providing our customers with outstanding service is a top priority. Working together with ATG, we have not only taken our online presence to new levels, but have maximized revenue opportunities across our online and offline channels.”

Features of ATG Campaign Optimizer include:

Slot Testing that allows for the rotation of products, promotions, advertisements, and creative into a specific location on a page (slot) based on weighted percentages. Slot Testing saves the cost and time attributed to building pages for every sample and provides more accurate results since companies will be able to test multiple items simultaneously.

Promotion Testing that allows for the testing of multiple promotions to see which will deliver the greatest click-through.

Location Testing that enables companies to test the best location on a page for pricing information, product information, navigation, and features (such as search).

Dynamically Served Content versus Fixed Content Testing to help companies test to see whether predetermined content, promotions, advertisements, and products produce better conversion rates than dynamically generated content based on a customer’s buying habits.

Functionality Testing to test which functionality will perform best on an organization’s site. With functionality testing, companies can measure the effectiveness of search capabilities, recommendation engines, and merchandising capabilities to see how they perform before making large investments in technologies.

“We’ve effectively taken the traditional method of A/B testing and turned it on its head,” said Phil London, senior vice president of products and technology, ATG. “ATG has been able to take a function that was typically difficult to manage, and put it into the hands of a business user without requiring IT support to operate it. That’s innovation.”

About ATG

ATG (Art Technology Group, Inc., NASDAQ: ARTG) delivers innovative software to help high-end consumer-facing companies create a richer, more adaptive interactive and guided experience for their customers and partners online and via other channels. ATG has delivered category-leading e-business solutions to many of the world’s best-known brands including A&E Television, Aetna Services, Inc., Alcatel, American Airlines, Barclays Global Investors, Best Buy, BMG Direct, Eastman Kodak, Ford Motor Credit, HSBC, Hyatt, J.Crew, Merrill Lynch, Newell Rubbermaid, Target, U.S. Army, Walgreen Company and Wells Fargo. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America, Europe, and Asia. For more information about ATG, please visit www.atg.com.

(C) 2004 Art Technology Group, Inc. ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc., and Campaign Optimizer is its service mark. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause ATG’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important risk factors affecting ATG’s business generally may be found in their periodic reports and registration statements filed with the Securities and Exchange Commission at www.sec.gov. Risk factors related to the subject matter of this press release include the possibility that the ATG product deployment will not be successful, on time or significantly enhance the user’s Internet experience or handle user volumes; that those customers leveraging ATG won’t have the opportunity to increase revenue and decrease future costs; the need to adapt to rapid changes so products do not become obsolete; the possibility of errors in ATG’s software products; the possibility that the solution will not make customer implementations faster or more flexible or permit the customer to meet its customer-facing or infrastructure requirements; that the ATG product will not continue to be integrated with third party applications servers or will not support all Web services enabled systems; that ATG’s product strategy may change in the future; and the risks and costs of intellectual property litigation. ATG undertakes no obligation to update any of the forward-looking statements after the date of this press release.

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