Behaviorally Targeted Ads Get More Attention

    September 14, 2007

Behaviorally targeted ads outperform contextual ads by as much as 22 percent in some categories; according to a new study from Revenue Science conducted by JupiterResearch.

"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, vice president of marketing at Revenue Science.

"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."

Across all advertising, 14 percent more online consumers are more receptive to behaviorally targeted ads than to contextual ads. For advertisers the study shows that behavioral targeting outperforms contextual advertising in terms of consumer attention by at least 10 percent across 14 major product categories, from financial services to consumer electronics.

In addition the study found that over 75 percent of online shoppers shop once per month or less and the majority only research a product once or twice before making a purchase.

"Due to the level of consumers’ online activity, marketers have to maximize a limited opportunity to move consumers through the purchase funnel and this research shows behavioral targeting is the solution," Schimke said.

The study also found that behaviorally targeted ads did better with both high and low online spenders. Among people who spend more than $500 online annually, 10 percent more were defined as behaviorally receptive and, among people who spend less than $500 online annually, 17 percent more were defined as behaviorally receptive.

"With behavioral targeting, marketers will be more effective in reaching both a higher value audience and the overall audience of online shoppers," added Schimke.