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Behavioral Targeting to Reach Over $1.1 Billion This Year?


eMarketer Thinks So

Research and analysis firm eMarketer estimates that over $1.1 billion will be spent this year in behaviorally targeted advertising. Will your business be in that mix?

It's certainly something to consider when looking at the research eMarketer has compiled from various sources. For one, they cite Choicestream who reports that 41% of US Internet users surveyed said they paid more attention to advertising that was personalized. On top of that, about 39% said they were more willing to click on personalized ads.

Another thing worth considering is that the more money people spend online in a year, the more likely they are to click on such ads. This is illustrated plainly in this graph from eMarketer:

US Internet Users Who Are More Willing to Click on Ads if They Are Personalized, by Amount Spent Online*, 2008 (% of respondents)

Of course, there is the whole privacy issue. Many people still get paranoid about this kind of thing. In fact, eMarketer cites a poll from TNS Global and TRUSTe that found 57% were worried about advertisers using their browsing history to serve them ads. They provide some interesting information here:

US Adult Internet Users' Attitudes toward Advertisers Using Their Browsing History for Advertising Purposes, February 2008 (% of respondents)

There is no question that behavioral targeting can produce great results. And the numbers would probably steer more marketers in that direction, but don't go into it blindly or you could end up with a tarnished reputation or even a PR nightmare if you don't go about it the right way. People are very sensitive to this kind of thing. Make sure you employ a strategy that is both legal and ethical.

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About the author:
Chris is a content coordinator and staff writer for SmallBusinessNewz and the iEntry Network. Subscribe to SmallBusinessNewz RSS Feeds.

Comments

Behavioral Targeting

Very interesting approach to target marketing. We all assume that this is going on right now but are never sure. With permission it would be useful for both buyer and seller. Without permission it could end a companies business quickly.

Paranoid?

To me, "paranoid" is when fears are unjustified.  As someone who has rationally investigated and discussed the abuses that can and have happened, I think "paranoid" is a misnomer.  Even though we're still in its infancy, over 41% of people (chart 3) already agree that they'd opt out of the promised "benefits".  As the real abuses mount, the BM (behavioral marketing) story will unravel and crumble.

Telemarketers eventually were constrained via the national do not call list.  I believe an anologous situation will unfold.  Already we're hearing endless stories about criminal data theft, accidental data exposed, search engines being required by some governments to curtail data retention length, and on and on.  Navy records lost, department stores hacked, crimnal networks pushing software to monitor personal data and so much more.

The value of personal data is one of the new currencies of the 21st century, so I predict regulated PII banks will emerge to house and safeguard our data and people will be able to chose to exchange permission to access it, to parties who provide a value back to the consumer.  The age of nearly unfettered data collection, retention and analysis is upon us now, BM will help rush it headlong towards its death.

very very interesting

very very interesting article Thanks, Peter Roesler President of a Florida Web Design company

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