Friday, September 14, 2007

Behavioral Targeting better than Contextual Advertising

Finally a new study is out showing the value of Behavioral Targeting. AOL and Revenue Science commissioned
JupiterResearch to conduct an independent unbiased study to find the effectiveness of Behavioral Targeting.

The results were based on 2035 respondents answering 25 questions.
Key Findings of this study

  1. Behavioral ads outperform contextual ads by up to 22% (I think it is the CTR that was compared).

  2. 66% of the online user acted as a result of viewing online ads).

  3. 14% more online consumers are more receptive to behaviorally targeted ads than to contextual ads. That is 63% of the total audience.

  4. 93% of the BT receptive audience shop online

  5. BT receptive audience

    • Spend more online

    • Shop online more often

    • Have higher income

  6. Online Shoppers (Frequent, Infrequent) and Non Shopper are all more receptive to BT ads as compared to Contextual Ads.

  7. At least 10% more purchase intenders across 14 categories noticed BT ads as compared to contextual ads. The categories used in this survey were financial services, Auto, Travel, Health Products, Consumer Electronics, Computing Products, Telecommunications, Entertainment, Classifieds, Pharmaceuticals, CPG, Fashion/Style, Education Services and Government Services

"We're glad to see that the voice of the online consumer echoes our position that behavioral targeting is more effective -- for advertisers, publishers, and for consumers --than contextual advertising," said Marla R. Schimke, VP of marketing at Revenue Science, in a statement. "This study also reaffirms our belief that Internet users favor advertising relevant to them personally and that advertisers should employ behavioral targeting campaigns to maximize their return on investment."
Source:Information Week

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