Behaviour-targeted advertising is more than twice as effective at converting users into buyers. A new study by the Network Advertising Initiative (NAI) found that behaviour-targeted advertising pulled in 2.7 times more revenue per ad than non-targeted advertising.
The study shows us how crucial behaviour-targeted advertising is to improving your conversion rate. Although behaviour-targeted ads sell at twice as much, they are clearly twice as effective as normal running ads.
This increasing significance of behavioural advertising will also now need new consideration of policies that may affect the current online advertising marketplace and the innovation it supports.
Other highlights from the study include:
• The average relative cost of behaviour-targeted ads in 2009 was 2.68 greater than that of standard run-of-network advertising.
• Behaviour targeted ads accounted for 17.9% of respondents' advertising revenue, with revenue increasing from 16.2% in Q1 to 19.4% in Q4 2009.
• More than half of the respondents' advertising revenue - 54.6% - went towards the purchase of inventory and was therefore shared with publishers and content producers to support their businesses.
