10.13.07

JupiterResearch Reports Behavioral Targeting Is Transforming Effectiveness of Online Advertising Campaigns; One in Four Online Advertisers Will Be Using Behavioral Targeting By 2007

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, reports that advertisers and agencies that have tested early online behavioral targeting services are yielding positive results. Detailed in a new report, "Effective Targeting," JupiterResearch estimates that one in four online advertisers will be using behavioral targeting by 2007.

"While behavioral targeting is still a new form of targeting for online advertisers and content publishers, early adopters are demonstrating its significance, especially advertisers with long purchase cycles," said Emily Riley, Analyst at JupiterResearch and lead author of the report. "Now is the time for publishers and service providers to capitalize on advertisers' optimism and offer a behavioral targeting solution."

Service providers work with both advertisers and publishers and provide a layer of technology or expertise that enhances the advertiser / publisher relationship. Currently there are two popular forms of behavioral targeting: extended content targeting and purchase intent targeting. Extended content targeting focuses on a displayed interest of a group of people and allows advertisers to target people with this interest while they are viewing other types of content. Purchase intent targeting is employed by advertisers to define an audience at a certain stage in a purchase or conversion cycle.

When questioned about the effectiveness of online advertising campaigns, JupiterResearch reports that 88 percent of advertising agencies that have used any type of behavioral targeting in the past 12 months are "very or somewhat satisfied." Only 56 percent of agencies that did not use behavioral targeting are "very or somewhat satisfied" with their advertising efforts over the past 12 months.