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garyp
09-09-2004, 07:01 PM
Targeted ads are the new kid on the Net block
Canadian IT/The Globe and Mail
http://www.canadait.com/cfm/index.cfm?It=902&Id=19182&Se=2&Sv=&Lo=2

The Globe and Mail takes a look at behavioural targeting.

Companies mentioned:
+ Tacoda Systems Inc.
+ Revenue Science Inc.
+ Burst Media

The advantage of the system for marketers is that targeted ads produce higher response rates than those delivered at random, according to Dave Morgan, chief executive officer of Tacoda. "Ads targeted to people always outperform ads targeted to pages on-line. This is true both for advertisers trying to deliver brand messages, and those trying to drive response or sales."

So far, consumer reactions to behavioural targeting have been mixed. A recent survey by on-line ad network Burst! Media LLC indicated one-in-five respondents would be willing to have their information tracked if it led to more relevant advertising.

"That's pretty amazing," says Burst's Chuck Moran, "since respondents were not prompted by visual cues and had to envisage for themselves what their Web surfing experience would be like."

"This year is a test year," says Nate Elliott, an associate analyst with Jupiter, noting that the concept of behavioural targeting has been around for years but the technology as it relates to advertising is "nascent."

Adoption is sluggish among publishers, as well. In the United States, major websites such as BusinessWeek On-line, About.com, FoodNetwork.com and MarketWatch.com have embraced the technology, but Canadian publishers are only beginning to take interest.