Behavioural targeting: Can online advertising deliver in 2006?

Abstract

Online marketing strategy today comprises a wide range of tactics, including search, e-mail, viral, blogs and advertising. But it is on the last of these activities, online advertising, that much of the debate around the effectiveness and contribution to the overall marketing plan continues to focus. In the same way as in the fashion and music industries, online marketing is a victim of trends: online advertising, once very much out of fashion, is now back in fashion. Part of the reason for its renaissance is that its users have learnt to apply traditional DM and database marketing methodologies to its business model. As a result the concept of ‘behavioural targeting’ is becoming a new weapon in the banner advertiser's arsenal, a weapon which wields great power to deliver better click and conversion rates and reduce the biggest issue of all in the media spend, wastage. Behavioural targeting is now helping to challenge the entrenched ROI models of effective CpA, and to deliver enhanced long-term value.