Behavioral Targeting Comes to Online Display Ads

We have been telling regulators and others, in discussing GoogleClick, YahooRight, and MicroaQuantive, that the danger in terms of privacy (and competition) is connected to the ability to collect user data & target via the converging search and broadband video market. We think this excerpt from today’s Online Media Daily illustrates what’s here:

The future of online marketing lies in making graphical display ads and video perform as effectively for marketers as search marketing has. And the key to that is data.

If you’re looking for a marketplace that works–search is the best model to look at. Marketers are essentially bidding on “data”–in this case keyword data–to create an economic marketplace that ties them together with consumers.

Every time you search, you’re telling marketers exactly what you’re interested in at that very moment. That’s why search ads are so targeted and perform so well. What many people don’t realize is that by merging behavioral and other data sets with real time analytics and sophisticated targeting, we can now achieve that same level of performance with display ads…
For the handful of “next-generation,” targeted ad networks capable of adding this type of value to inventory, it means we hold the keys to a market that’s potentially five times the size of the search market, measured by
total available ad impressions.”

from: Online Advertising Future: Automation or Data? Gurbaksh Chahal. May 24, 2007.

Author: jeff

Jeff Chester is executive director of the Center for Digital Democracy. A former journalist and filmmaker, Jeff's book on U.S. electronic media politics, entitled "Digital Destiny: New Media and the Future of Democracy" was published by The New Press in January 2007. He is now working on a new book about interactive advertising and the public interest.

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