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BizReport : Advertising archives : April 08, 2010

Study: Behavioral targeting doubles campaign revenue

When it comes to targeting, a recent study from The Network Advertising Initiative indicates behavioral targeting may be the biggest impactor. According to the study behaviorally targeted ads (served in 2009) gave marketers more than twice the revenue per ad as 'run of network' ads. Behaviorally targeting ads also doubled click conversions.

by Kristina Knight

nai.gifBehaviorally targeted ads accounted for about 18% of total ad revenue for the 2009 year. As opposed to targeted an ad based on the contextual value of the content, behavioral targeting takes into account past clicks, page views and surfing histories of anonymous consumers to help them engage with advertising.

"This study demonstrates the increasing significance of behavioral advertising to the economic model supporting free online content and services for consumers," said Charles Curran, executive director for NAI. "We will continue to work closely with policymakers [to give] consumers better information, tool and choices while making online advertising even more relevant to their needs."

Researchers found:

• Behaviorally targeted ads earned 2.68 times more revenue than 'run of network' ads
• Behaviorally targeted ads converted at 6.8% compared to a 2.8% conversion for run of network ads (for consumers who clicked on ads)
• CPM for behaviorally targeted ads was $4.12, run of network ads ran $1.98

The study was conducted from January to March 2010 with the participation of twelve online advertising networks and marketing analytics companies that belong to the NAI. Study participants provided proprietary data on the revenue, composition and effectiveness of different types of online advertising on their networks.

Tags: ad targeting, advertising performance, advertising revenues, behavioral targeting, NAI, online advertising

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  • Jeremy

    converting at 6.8% and 2.8%....really? Those are some top notch researchers.



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