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BizReport : Research archives : January 12, 2011

Reports: Ad targeting, SMB spending on the up in 2011

The future may not have a rosy hue, but businesses are responding to 2011 in high spirits. According to two new reports, businesses plan to increase their spending this year; part of that increase will be placed in audience targeting and some in social media.

by Kristina Knight

The first report, from AudienceScience, suggests that half of advertisers will increase their audience targeting spending in 2011. Despite reports that consumers don't want to be targeted, brands are seeing results from targeted ads. Some experts suggest that the negative response to targeting in surveys is the result of biased questioning, because when presented with a targeted, relevant ad most consumers do respond positively. Because of that positive response, many businesses plan to continue using safe methods to target.

"Audience targeting has entered the mainstream as an essential part of any successful marketing campaign," said Stuart Colman, Managing Director, Europe, AudienceScience. "Spending on Audience Targeting continues to increase as advertisers, agencies and publishers all recognize the value of audience targeting as an effective channel."

The report finds:

• 85% of agencies/advertisers use audience targeting
• 50% of agencies/advertisers plan to increase audience targeting in 2011
• 63% of publishers have seen increased revenue from audience targeting
• More than half of agencies/advertisers say they've increased display advertising because of targeting

Another positive sign for 2011? Small businesses have plans to increase spending for the New Year and many handed out holiday bonuses during the 2010 holiday season.

The second report, Manta's 'Pulse of Small Business Survey', finds that 77% of Small businesses plan to increase spending in 2011, with about 47% making marketing and sales their top priority. Many of these SMBs will turn to social networks (42%) to connect with consumers with another 14% planning to integrate with socnets 'in the near future'. Still, 33% of SMBs say socnets aren't useful to them.

Tags: ad targeting, audience targeting, AudienceScience, Manta, online advertising, small business, SMB trends

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