A new study by Advertising.com found that behavioral targeted ads produce lower response rates than run-of-network placements, but deliver higher conversion rates. The study examined three advertiser campaigns targeted to Advertising.com’s personal finance, automotive and education behavioral populations. For each advertiser, identical creative messages were sent to both a run-of-network audience and the behaviorally segmented audience. In each study, conversion rates increased markedly for targeted impressions vs. run-of-network impressions. However, click-through rates experienced the opposite effect — with the number of clicks decreasing for targeted impressions. These findings suggest that behavioral targeting actually increases the value of each click, as consumers who click on a targeted ad are more motivated to convert.
The buzz in online advertising in not only around search engine marketing. Behavioral targeting plays a key role in the market, enabling advertisers to proactively reach out to a highly targeted group of consumers. A new free report (“What Comes Before Search?”) by eMarketer looks at how behavioral targeting works, the relationship between search and behavioral targeting, and the challenges associated with making it effective. eMarketer projects that, in 2005, behavioral targeting will reach $934 million and will account for 8.3% of all online advertising spending. That’s compared to $627 million and 6.9% projected for this year. You can download the report here.
Imediaconnection a couple of weeks ago has started a new column dedicated to Behavioral Marketing, today on ClickZ James Hering writes about Targeting Good Behavior. It seems like behavioral marketing is the new online fashion. Hering’s article is pretty good, since it provides the basics to understand what BM is about.
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