Study finds behaviourally targeted ads more than twice as effective as non-targeted online ads

29 Mar 2010  |  Sam Howroyd 
Laptop and mouse

A US study by the The Network Advertising Initiative (NAI) has found that behaviourally targeted ads are more than twice as effective and valuable as non-targeted online ads.

In 2009, behaviorally-targeted advertising secured an average of 2.68 times as much revenue per ad as non-targeted "run of network" advertising.

The report said that behaviourally-targeted advertising is more than twice as effective at converting users who click on the ads into buyers (6.8% conversion vs. 2.8% for run-of-network ads), and accounted for approximately 18% of advertising revenue.

The study was commissioned by the NAI and conducted by economist Howard Beales, the former director of the Bureau of Consumer Protection at the US Federal Trade Commission.

"Over the past several months, policy discussion around behaviourally-targeted advertising has lacked a critical foundation, because there had never been an empirical assessment of the value of such advertising to ad networks, consumers, and publishers," said Beales.

"This study found that behaviourally targeted advertising is a critical component of ad network, publisher, and advertiser success. Behaviourally targeted ads sell for twice the price and offer
twice the effectiveness of normal run-of-network ads, significantly enhancing the advertising revenue engine driving the growth of the internet."

Carat has just released a global adspend forecast, predicting 10.1% growth in online this year and 9.1% growth in 2011.

Latest

Somersaults and blind eyes Without great creative your media plan won't work ShortList ditches print as its publisher rebrands National Newspaper Daily ABC Circulation Social media: 4C and Essence on agency structures

Related articles

Leave a comment

Thank you for your comment - a copy has now been sent to the Newsline team who will review it shortly. Please note that the editor may edit your comment before publication.

DATA SNAPSHOT

16 Nov 2018 

Data from Mediatel Connected
Find out more about the UK's most comprehensive aggregator of media data.

Arrange a demo
Advertisement

Newsline Bulletins

Receive weekly round-ups of the latest comment, opinion and media news, direct to your inbox.

More Info
Advertisement