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BizReport : Advertising archives : July 27, 2007

There are still obstacles to behavioral targeting

Targeting online ads according to past behavior is expected to reach the $1 billion mark in 2008, but according to some reports, there are still issues with this type of targeting. Is behavioral targeting right for your campaign?

by Kristina Knight

Only you can decide.

Targeting behaviorally is a large expense and the metrics that equate the cost effectiveness of this type of targeting are still in the beginning stages according to MediaPost. Which means in many cases, advertisers won't know if the cost of these ads is in line with the ROI of the overall campaign.

Another problem is proper behavioral targeting sometimes requires more information than an advertiser can gather. In some cases, marketers need to actually talk with consumers or customize ads to the extent that the ads are no longer affordable.

Who is using behavioral targeting? Roughly 16% of advertisers have used this type of targeting in the past 12 months. That is a small percentage compared to the nearly 33% who have used geographical targeting or contextual targeting. Most of those using behavioral targeting are in an agency setting rather than on the client level.

Though behavioral targeting is expected to continue to grow as marketers learn how to deliver behaviorally targeted ads properly, about one-quarter of marketers say content targeting is more important, at least as this point.

Tags: behavioral targeting, contextual targeting, geographic targeting

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