http://www.emarketer.com/Report.aspx?code=emarketer_2000415&src=report1_head_info_newsltr

Internet advertising is no longer all about paid search. Targeted display advertising is exploding. Today, it's where the excitement is, where the eyeballs are and where the industry dollars are flowing. In fact, behavioral marketing may be the future of advertising everywhere.

The Behavioral Targeting report analyzes why more major brand marketers are turning to the Web to advertise to and target their increasingly fragmented audiences.

The $1 billion that eMarketer projects for behavioral targeted ad spending in 2008 represents only 11% of the US display, rich media and video market. With the greater attention paid to overall ad targeting, however, and the rising focus on brand messages online, this market will nearly quadruple by the end of 2011.

Key questions the "Behavioral Targeting" report answers:

• What types of ad targeting are most effective?
• Why is behavioral targeting often at the forefront of targeting techniques?
• What elements contribute to large spending increases for behavioral targeting?
• Can targeting's reduced reach and effective ad campaigns be reconciled?
• Will privacy concerns slow down, or even derail, certain online ad targeting methods?
• And many others...

eMarketer Reports—On-Target and Up-to-Date

The Behavioral Targeting report aggregates the latest data from marketing and communications researchers with eMarketer numbers, projections and analysis to provide the information you need to make the right business decisions—right now.

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The Behaviorally Targeted Ad Audience

JUNE 18, 2007

Is your campaign too finely targeted?

Consumers like the idea of getting relevant ads tailored to their interests — at least online. In a study published in January 2007 by ChoiceStream, 70% of respondents said they were interested in receiving personalized advertising via the Internet.

That was more than those who wanted such ads delivered to their TVs, and far more than those who were interested in personalized mobile phone ads.

The more relevant an ad can be, the better. For instance, the more general relevance of contextual targeting tends to lag behind the more specific focus of behavioral targeting, at least according to surveys from companies in the behavioral targeting space, such as Revenue Science.

In a May 2007 consumer study from that company, JupiterResearch and AOL, the following top-line results compared contextual with behavioral methods:

1. 74% of frequent ad viewers stated they would pay more attention to a contextual ad vs. 89% who would pay more attention to behavioral ads
2. 63% of online consumers say they pay more attention to ads that fit their specific interests vs. 49% who pay more attention to ads that are directly related to their current online activity; that data could be interpreted as more attention for contextual (specific interests) than behavioral (current online activity)
3. 67% of online shoppers — defined as those who research and/or purchase online — notice behaviorally targeted ads vs. 53% who notice contextual targeted ads

The personalization inherent in correctly done behavioral targeting tends to mean greater awareness among the target audience. In the ChoiceStream survey, 38% of respondents say they are more willing to pay attention to such individually focused advertising.

The personal touch inherent in well-segmented behavioral targeting appeals even to those Internet users who are sensitive to privacy issues, with 50% of that group saying they like to receive promotions and offers that are based on their interests and tastes, according to a study from Ponemon Institute sponsored by Claria.

As useful as targeting can be, eMarketer Senior Analyst David Hallerman says that it can be taken too far.

"An advertiser can slice and dice the audience too much," Mr. Hallerman says. "While the target may then be more accurate, the number of people exposed to the message, in the time needed for the campaign, can become too limited to be effective. Marketers need to remember not to let their desire for the perfect drive out the good."

Learn more about how advertisers and publishers can find their audiences. Read the eMarketer Behavioral Targeting: Advertising Gets Personal report.