As more advertisers embrace new technology in 2008, we can expect to see behavioral targeting continue to make headlines. This will give smart advertisers an advantage in expanding user attention--by (a) creating richer experiences, (b) delivering a better mix of digital channels, and (c) achieving higher relevance with more accurate targeting.

In 2007, behavioral targeting was exercised primarily as a function of media buying. Publishers emphasized their targeted offering, and behavioral networks further enhanced reach. Consumers responded positively: a Jupiter Research study finds that behavioral advertising outperformed contextual by as much as 22%.

But propositions such as these are not without limitations. Media buying is often confined to a single publisher, but consumers are not.

Without the ability to follow users across publishers, across networks, and even across applications, it's impossible to truly "understand" a user's behavior. Furthermore, often the conception and design of the campaign are totally separate from media buying--seriously limiting the ability to mesh behavioral aspects into the campaign concept. Behavioral targeting circa-2007 merely took a given creative and attempted to place it where relevant. This was a great advancement, but digital advertising can surely do much better than that.

Behavioral Optimization

Call it behavioral optimization. Thanks to recent innovations in dynamic creative and user behavior tracking, 2008 enables advertisers and agencies to take a new approach to behavioral targeting. These campaigns act upon actual user response to product messaging, giving a more accurate read on consumer behavior while simultaneously placating those with concerns about privacy issues. If we conceive our behavioral campaigns this way, we'll be able to optimize, in real-time, the type and content of advertiser messaging.

This approach will also free the media professional to exercise their entire repertoire of publishers and media properties, as users can be tracked on any site, IM application or even in-game experience. When approached this way, behavioral targeting lends added flexibility and increases ROI--a true revolution in interactive advertising.

While 2006 was the year of user-generated content, in 2007, the advertising world tried to learn from those users. Behavioral optimization truly empowers users, learns from them, reacts to them and ultimately presents exactly the messaging users want to receive.

The user has spoken, and the old way of conducting digital advertising won't cut it. They're ignoring standard ads, and banner blindness is a growing epidemic. But behavioral optimization identifies the right consumers, hones the message in real-time and builds the path to a dramatically increased ROI.

And I don't care whether it's 2008 or 1968; ROI is what it's all about.

This commentary is insightful. I recommend it to others.