The Behavioral Targeting Year in Review, Part 1
Networks, portals, and individual sites all saw changes in behavioral targeting over the past year.
Networks, portals, and individual sites all saw changes in behavioral targeting over the past year.
Behavioral targeting grew both in breadth and depth in 2006, with new capabilities and new players fueling the growth of one of the most successful online marketing approaches. The areas of growth were diverse, reflecting a rise in both technical capabilities and awareness among media players and their customers. As media properties pore over numerous case studies of marketers who touted their programs’ behavioral components and received RFPs (define) specifically requesting this capability, they stepped up to include or enhance similar options in their mix.
The Resurgence of the Ad Network
Not only have a number of new ad networks been introduced, many networks and portals have evolved and refreshed their technology and targeting capabilities. In an increasingly crowded field, many networks are trying to find their point of differentiation. Right Media introduced an auction-based media management system, for example. Specific Media delivers a premium network with top 450 sites, as reported by comScore. Several networks have newly offered retargeting, including Vendare Media, Undertone, and Tacoda. Some have gone for sheer spending, adding sites to their lists and impressions to their inventories.
Additional Targeting Options in Portals
Portals adopted and refreshed behavioral targeting competencies in 2006. In September, MSN began utilizing behaviorally targeted ads across MSN sites, and Yahoo revamped its behavioral targeting platform in the summer to include a new matching system, which identifies the various stages of the purchasing process. Further segmentation options are giving portals a decided selling point against the reach of networks.
Individual Sites
Individual sites are now stepping up and offering more advanced behavioral targeting capabilities within their sites. This allows them to profile site user behavior and present relevant ads to users outside the related content areas. This may be Behavioral Targeting 101 to some, but it’s new to many standalone sites and a significant advancement now seen even in smaller sites. Behavioral targeting allows individual sites to monetize inventory on less trafficked pages and helps substantiate their CPMs (define).
New Opportunities
Mobile carriers are adopting behavioral ad technologies. Sprint Nextel displays ads on its deck with home-page advertising that allows it to target cell phone users by their behavior. In the past few weeks, Verizon Wireless and AT&T announced similar offerings. We may still be a long way from effective mobile advertising in the mode of Europe or Japan, but 2007 will be a year to watch in the U.S. A lot depends on hardware and infrastructure advances in the space.
What’s New for Advertisers and Agencies?
Where will all this growth take us? Will networks continue to overlap, giving us strangling duplication, or will they coexist to offer extended reach? Will the industry come together to establish standards, including language commonalities, to dispel the confusion surrounding the space? We’ll explore the challenges and obstacles in the second part of this column. Stay tuned.