Monday, June 11, 2007

Behavioral Targeted Ad Spending to Rise to 3.8 Billion by 2011

If you are reader of this blog then you know that I have been writing about Behavioral Targeting from the beginning.
I predicted earlier this year that Behavioral Targeting will become a common term among marketers
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A recent report by eMarkters furthers validates my prediction. According a latest study by Marketers Spending for Internet advertising with a behavioral targeting component will soar to 3.8 billion by 2011.



There are three key reasons for the large spending gains:
1. Behavioral targeting helps marketers reach a more engaged audience with fewer ad impressions
2. Behavioral targeting helps publishers monetize their "long tail" pages — the non-premium or remnant inventory that either is sold for less money or remains unsold
3. Even though individuals are often not aware of the process, many tend to find ads targeted by their actions to be more relevant to their needs, and therefore more palatable or even welcomed


Behavioral targeting spending will continue to grow at a significant rate, peaking at nearly 74% next year due to a combination of greater advertiser acceptance, greater publisher support (only about one-third of Web sites can do behavioral targeting, according to Advertising.com) and greater overall online ad spending with the national elections and Summer Olympic Games.



By 2011, "very large publishers will be selling 30% to 50% of their ad inventory using this [behavior targeting] technique," predicts Bill Gossman, CEO of Revenue Science.