Posts Tagged ‘Rich Media’

Behavioral Targeting: A Double-Edged Sword

30
June
2008

Relevant ads targeted towards Internet users’ needs lend to high click-through rates, yet debate over its infringement upon individual privacy persists…

Christine Pepin
Media Coordinator

With the potential audience for Internet ads exceeding two-thirds of the US population by the end of 2009, both online advertisers and web publishers are highly optimistic about greater revenues from ad inventory.  Unfortunately, these prospective 200 million users are actually becoming unresponsive to the most common forms of online advertising, finding ads to be irrelevant to their current interests.  With the use of behavioral targeting, advertisers have a chance of reversing user’s indifferent attitudes about the banners, rich media, and video ads disseminated online.

By targeting ads based on a consumer’s specific interests or needs online advertisers may begin to see the revenues they seek.  However, with behavioral targeted advertising comes a greater risk of violating the individual privacy of consumers, which is closely monitored and protected by privacy groups, state governments, and the FTC.  The good news for advertisers is that 66% of US Internet users indicated they would click on additional Internet ads if they were more relevantly targeted.  The bad news is that a nearly identical number (65%), represents users who call Internet advertising more intrusive than print ads.

Below is a study by eMarketer that shows the different attitudes of Internet users towards online advertising:

Attitudes of U.S. Internet Users Toward Online Advertising by Age, October 2007- eMarketer

Economic Struggles Won’t Stunt The Growth Of Online Advertising

26
March
2008

Despite the current state of the economy, eMarketer predicts that spending on online advertising in the U.S. will continue to grow.

Ryan Moss
Research Analyst

The struggling economy has been affecting many different areas in the marketing/advertising world, however online advertising is not expected to be significantly affected by the economic downturn. According to eMarketer, online advertising spending will increase by 23% during 2008. If eMarketer’s predictions are correct, online advertising will remain as the fastest-growing media in terms of ad spending. Experts attribute online advertising’s continued growth to the fact that it is very easy to measure online ad success, and to target ads to any desired market. These two qualities are what matters most to marketers.

In the online advertising industry, search is expected to account for the highest percentage of spending (40%) during 2008. However during the next four years experts believe that percentage will decrease, losing share of ad spend to rich media/video which is expected to grow significantly between now and 2012. See the chart below for a complete breakdown of U.S. online advertising spending by format.

US Online Advertising Spending By Format 2007-2012 eMarketer