Huge rise in use of behaviorally targeted ads predicted

The report, “Behavioral Targeting: Advertising Gets Personal” forecasts that U.S. spending on behaviorally targeted online advertising will rocket to $1 billion in 2008, from the current level of $575 million. By 2011 that figure, says eMarketer, will almost quadruple to $3.8 billion.

eMarketer gave three reasons for their predicted rise in spend. Firstly, the ability for behavioral targeting to reach a more engaged audience with fewer ad impressions. Then there’s the increased relevance of the ads to the internet user which, in turn, promotes action and finally the ability to monetize “long tail” pages.

Behavioral targeting relies on the collection of user data, usually via cookies, to analyze the sites users activity, how long they remain on a site, what they interact with and the keywords they use to search. Not all users are comfortable with their internet usage being tracked.

"Advertisers most likely to succeed over time are those who employ transparency of intent, clarity of usage, freedom of choice and mutual understanding of the implicit bargain among consumers, content providers and advertisers," said the report's author and eMarketer senior analyst, David Hallerman.

Tags: advertising spending, behavioral targeting, eMarketer