Wednesday, July 25, 2007

Ad Networks: Why it’s better than ever to be a targeted content site

Jeremy Liew has written a very interesting article on Venturebeat:

A recent report by Collective Media found that:
  • 66% of advertisers plan to increase their usage of ad networks in 2007
  • 88% of respondents planning to use online ad networks in 2007 (up from 77% in 2006).
  • 57% of respondents believed how an ad network targets audiences was the #1 differentiating factor between networks


The WSJ recently had an excellent article on behavioral targeting that detailed Pepsi’s launch of Aquafina Alive,their new low cal vitamin enhanced water. The campaign was backed by an online campaign through Tacoda and targeted to people who had previously visited “healthy lifestyles” websites.

The result? Pepsi recorded a threefold increase in the number of people clicking on its Aquafina Alive ads compared with previous campaigns. “We’ve never been able to get to this level of granularity,” says John Vail, director of the interactive marketing group at Pepsi-Cola North America.

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Blogger Vivek said...

An interesting topic. And I would agree that targeted advertising is the way to go.
I recently read an article that tries to (a bit harshly in my opinion) question the potential for behavioural targeting in India.
Although - The author has made one key observation which I might tend to agree with for a while.
In this post on WATBlog, point 5 is something that seems interesting to me - but for a slightly different reason that what the author mentions.

There is one key difference I think, that exists in the demographic makeup (and corresponding online behaviour) of most of the current first world online consumers versus those in a country like India or China. This is going to be a bit tricky to explain, but I will give it a shot:
Choice Awareness: Most of the first world consumers have over the years evolved into a more or less aware and well informed set, which in turn allows for the profiles/segments to be a little more predictable than for a consumer base in places like India and China. I think there is still some way to go, before the consumer in the BRICS markets will lend themselves to stable and accurate targeting for the most part. Till this happens, targeting might not lead to similar levels of success as in the US etc. However, this is a time-bound issue and targeted ad solutions that establish themselves early on based on a better understanding of the markets they are serving and technology innovations are going to succeed eventually.

3:27 PM  

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