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BizReport : Research : May 04, 2010

Report: Behavioral targeting a question mark for brands

Behavioral targeting may have proven to be a highly engaging form of advertising, but rising concerns about consumer privacy has many marketers questioning the process. And holding back ad dollars from behaviorally targeted advertising. That, according to a recent report from the Ponemon Institute.

by Kristina Knight

The report suggests that brands and marketers would jump whole-heartedly into the behavioral space, potentially quadrupling the behavioral spend, if privacy concerns were lessened. Behaviorally targeting ads is the act of tracing consumers as they go about surfing, clicking onto content and ads during web sessions. That data is then used to send them ads based on the information collected.

According to researchers nearly three-quarters (70%) of online marketers believe that behaviorally targeted ads is effective, but most are still leery of the medium because of the way much of the data is captured and used. They estimate that only about 12% of online marketing budgets are currently being used for behaviorally targeted ads, but that if consumer privacy could be better protected the spend could grow to as much as 50% of online ad budgets.

Behavioral targeting is not new to the online space, but over the past few months has gotten more attention as US lawmakers try to determine if consumer privacy is being violated in the way data is collected and used.

To reach their conclusions Ponemon Institute researchers polled 90 marketers about behavioral targeting.

Tags: ad budgets, behavioral targeted, online advertising, Ponemon Institute

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