September 20, 2007
Behavior Beats Context in Online Ads
By Tom Ryan
Online consumers are more receptive to behaviorally targeted ads than contextual advertising, according to a new study.
The
Jupiter Research study prepared for Revenue Science, a digital media company,
found that 14 percent more online consumers are more receptive to behaviorally
targeted ads than to contextual ads, representing 63 percent of the total audience.
It also found that audiences receptive to behavioral ads are of higher value
than those who respond to contextual ads.
Contextual advertising focuses solely
on content. As an individual browses the web, they are presented with advertisements
that are relevant to what they are reading.
By comparison, behavioral targeting
is based on a marketer determining if a user spends time searching for a particularly
product – say a new car on the Toyota website – and then visits a content site
a short time later. At the content site, users would them be served with advertisements
enticing them to purchase a Toyota car. Although behavioral ads clearly enable
advertisers to reach consumers on a much more personal level, the downside
is that many consider it invasive.
In Jupiter’s study, more than 2,000 participants
were polled in April on their receptiveness to different types of ads, their
interest levels, and what type of ads are likely to lead them to action.
The survey found that behavioral targeting outperforms contextual advertising in gaining consumer attention by at least 10 percent across 14 major product categories. Among core brick & mortar categories, behavioral ads outperform contextual ads online by 15 percent for consumer electronics, 16 percent for CPG, and 14 percent for fashion.
The study also found that behaviorally-receptive audiences are more likely to have a higher income, spend more online, and shop more frequently than others.
“This study also reaffirms our belief that internet users favor advertising relevant to them personally and that advertisers should employ behavioral targeting campaigns to maximize their return on investment,” said Marla Schimke, VP of marketing at Revenue Science.
Discussion Questions: Does the study’s findings that consumers respond better to behavioral ads than contextual ones ring true with you? Do you consider behavioral ads invasive? What else would you like to know about how behavioral ads work versus contextual ones before deciding which is the best way to reach consumers?
- Revenue Science Study Shows Online Consumers More Receptive To Behaviorally Targeted Ads Than Contextual Ads Across All Major Categories – Online Behavioral Ads Beat Contextual Ads, Survey Says – Revenue Science
- Jupiter Research Study, Behavioral Targeting & The Purchase Funnel Opportunity – Revenue Science (Reg. required)
BrainTrust
Recent Discussions
Discussion Questions
Poll
Such a study is very worthwhile, but challenging! Its results become pertinent if they were segmented into people predisposed to the product and/or service; and demographically, with a generational overlay.
It is noted that behavioral and contextual ads have become an issue or subject of discussion across the generations. It would be beneficial for the researcher to offer more information, without giving the priority results away.
Hmmmmmmmmmmmmmmmmmmmmm
The holy grail of advertising is to reach the right prospect with the right message at the right place (increasingly, online) at the right time (just as they are in the market for the product or service being advertised). Of course behavioral advertising is more effective (if more annoying to those who are not in the market right now).
But it still points to where marketing and advertising are heading and must eventually arrive: markets of one, mass customization, and individualization.
If you can get the segment down to one customer, you can have a much more optimized delivery with instant return. A better understanding of each customer leads to better predictions of behavior (or, in other words, a better way to anticipate customer needs). And the best source of such information is the direct interaction and communication between customer and provider.
The companies that interact with their customers, learn from their customers, and collect relevant, specific information on each of their customers–information that can be accessed and utilized in serving individual customers–are the companies that will optimize results.
Another way to summarize this is research is: People prefer ads that do a better job of understanding who they are and what they want.
My company’s experience with personalized marketing is that contextual targeting (e.g., they have a dog, so try to sell them dog food and treats) doesn’t have anywhere near as much impact as behavioral targeting (e.g., they buy Iams large bag dog food, so make sure they know when it’s on sale).
I think Roger Selbert hit the nail on the head: “If you can get the segment down to one customer, you can have a much more optimized delivery with instant return.” The dynamic content capabilities of email and the Internet make that kind of personal communication possible, but you have to do the hard work to know what EACH customer wants to see.
Regardless of whether shoppers dislike behavioral targeting, advertisers only want to know one thing: does it sell more product? Everyone hates spam, but if it wasn’t profitable, there wouldn’t be any.
More Discussions
Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?OpenAI Names the Infrastructure Standard for Agentic Commerce
Will OpenAI or Google (or another entity) set the gold standard for agentic commerce?Is Five Below Poised For Even Greater Growth?
Five Below is hitting serious growth numbers. Can this trend continue?
Such a study is very worthwhile, but challenging! Its results become pertinent if they were segmented into people predisposed to the product and/or service; and demographically, with a generational overlay.
It is noted that behavioral and contextual ads have become an issue or subject of discussion across the generations. It would be beneficial for the researcher to offer more information, without giving the priority results away.
Hmmmmmmmmmmmmmmmmmmmmm
The holy grail of advertising is to reach the right prospect with the right message at the right place (increasingly, online) at the right time (just as they are in the market for the product or service being advertised). Of course behavioral advertising is more effective (if more annoying to those who are not in the market right now).
But it still points to where marketing and advertising are heading and must eventually arrive: markets of one, mass customization, and individualization.
If you can get the segment down to one customer, you can have a much more optimized delivery with instant return. A better understanding of each customer leads to better predictions of behavior (or, in other words, a better way to anticipate customer needs). And the best source of such information is the direct interaction and communication between customer and provider.
The companies that interact with their customers, learn from their customers, and collect relevant, specific information on each of their customers–information that can be accessed and utilized in serving individual customers–are the companies that will optimize results.
Another way to summarize this is research is: People prefer ads that do a better job of understanding who they are and what they want.
My company’s experience with personalized marketing is that contextual targeting (e.g., they have a dog, so try to sell them dog food and treats) doesn’t have anywhere near as much impact as behavioral targeting (e.g., they buy Iams large bag dog food, so make sure they know when it’s on sale).
I think Roger Selbert hit the nail on the head: “If you can get the segment down to one customer, you can have a much more optimized delivery with instant return.” The dynamic content capabilities of email and the Internet make that kind of personal communication possible, but you have to do the hard work to know what EACH customer wants to see.
Regardless of whether shoppers dislike behavioral targeting, advertisers only want to know one thing: does it sell more product? Everyone hates spam, but if it wasn’t profitable, there wouldn’t be any.