Excerpt from:  The INSIGHT Blog
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June 30, 2008

Behavioral Targeting: A Double-Edged Sword

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

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