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BizReport : Research archives : October 16, 2006

For Conversions Show Ads Out Of Context

A new study indicates that ads seen in the same context as behavior have a higher click through rate, but ads viewed in a different context had a higher action through rate.

by Kristina Knight

The study, conducted by Blue Lithium’s BL Labs, indicates that direct marketers will get better conversion results by advertising on sites that are different from what is being advertised. In other words, if you want to target hobby chefs advertising on a dating website may bring more purchasing shoppers than advertising on a cooking website will.

BL Labs analysts evaluated the click through rates (CTR) and conversion as well as action through rates (ATR) of more than 400 million impressions gathered from its network of sites, across behavioral and contextual segments.

Dakota Sullivan, Blue Lithium’s CMO told , “If your goal is traffic, use behavioral targeting in context. If your goal is conversions, use behavioral targeting out of context."

In the study, CTR was 108% higher when behaviorally targeted ads were shown in a different content category. The overall ATR was 19% higher than ads that were shown in the same category.

This isn’t new. A December 2005 study from Tacoda showed very similar results. In that study, however, behaviorally targeted ads only received more “looks” when viewed out of context.

Tags: behavioral targeting, online marketers, online marketing, search marketing

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