Targetted Online Advertising Expected to Double by 2014


As the effective mixing and mining of audience data becoming increasingly important to online advertisers, the role of behavioral targeting has grown more central, finds eMarketer, which estimates that online advertisers in the US will spend more than $1.1 billion on behaviorally targeted advertising. By 2014, spending will hit $2.6 billion, representing steady growth rates of about 20% from 2009 through 2014.

The figures include spending on online ads displayed to a select audience whose interests or intentions are revealed by Website or ISP tracking data, audience segmentation or predictive analysis.

Behaviorally targeted ad dollars will rise as a proportion of online display spending from 14.2% in 2010 to nearly 20% by 2014, when ads targeted based on interests or intentions will account for 7.6% of total US online ad spending.

However, with ad targeting and privacy issues in the public eye, marketers face the possibility of regulation or legislation that sets boundaries on how they can use audience data, warns EMarketer.

“A more open deal between the two sides, the ad industry and consumers, could help draw more ad dollars to behavioral targeting,” said eMarketer senior analyst David Hallerman. “In that case, traditional brand marketers would be less concerned about giving a black eye to their brand image through what some consumers see as privacy violations from behavioral targeting.

“And many consumers would wind up more educated about the essential anonymity of behavioral targeting and therefore could more readily accept such ad targeting in exchange for free content,” Mr. Hallerman said.

www.emarketer.com/Article.aspx?R=1007489

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