A study was just released from the NAI (National Advertising Initiative), which has some interesting findings. Keep in mind that they surveyed only their own members. Still, it could be telling us a lot that can benefit our Search Engine & Internet Advertising strategies.
The study was on Behaviorally Targeted Ads versus non-BTAs. They found that Behaviorally Targeted Ads were both twice as effective and twice as expensive. However, if this approach raises your profitability what do you care that it costs more? It’s an investment, remember?
The study highlights, courtesy of SmallBusinessNewz:
- Behaviorally-targeted ads were 17.9% of respondents’ advertising revenue, with revenue increasing from 16.2% in Q1 to 19.4% in Q4 2009.
- Over half of the respondents’ ad revenue – 54.6% – went towards the purchase of inventory and was therefore shared with publishers and content producers to support their businesses.
- Data from a smaller subset of the survey respondents suggested that users who clicked on a behaviorally-targeted ad were more than twice as likely to complete a transaction or sale with that site than those who clicked a standard run-of-service ad (6.8% vs. 2.8%).
- Total online ad revenue for the twelve companies who participated in the study was $3.323 billion in 2009.
Sounds like emphasis on these ads could pay off very well. To see the full study in PDF:
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