• by Jack Loechner , Staff Writer @mp_research, September 20, 2007

Relevant Advertising (Behaviorally Targeted) Yields More Receptive Prospects

Revenue Science, Inc. announced the results of a study on consumer receptivity to online advertising, conducted by JupiterResearch, that found that more online consumers are consistently more receptive to behaviorally targeted ads than to contextual advertising, outperforming contextual by as much as 22 percent in some categories.

Marla R. Schimke, vice president of marketing at Revenue Science, said "... (this report shows that) behavioral targeting is more effective than contextual advertising for advertisers, publishers, and for consumers... This study... reaffirms our belief that Internet users favor advertising relevant to them personally..."

The responses of more than 2,000 people surveyed revealed that, across all advertising, 14 percent more online consumers are more receptive to behaviorally targeted ads than to contextual ads, representing 63 percent of the total audience.

For advertisers, the study shows that behavioral targeting outperforms contextual advertising in terms of consumer attention by at least 10 percent across 14 major product categories, from Financial Services to Consumer Electronics to Pharmaceuticals to Fashion and Style.

Specifically:

• 17 percent more online purchasers of computing products are more receptive to behaviorally targeted ads
• 18 percent more online auto purchasers are more receptive to behaviorally targeted ads
• 20 percent more online telecom purchasers are more receptive to behaviorally targeted ads than to contextual ads

The necessity of using attention-getting behavioral targeting was reinforced by responses regarding online behavior. The study found that more than 75 percent of online shoppers shop once per month or less and that the majority only research a product once or twice before buying.

Schimke concludes that the research shows behavioral targeting is the solution to maximize a limited opportunity to move consumers through the purchase funnel.

The study also found that the behaviorally-receptive audience

• Is more likely to have a higher income
• Spends more money online
• Shops online more frequently than others

According to the study, behaviorally targeted ads fare better among both high and low online spenders. Among people who spend more than $500 online annually, 10 percent more were defined as behaviorally receptive and, among people who spend less than $500 online annually, 17 percent more were defined as behaviorally receptive.

"With behavioral targeting, marketers will be more effective in reaching both a higher value audience and the overall audience of online shoppers," added Schimke.

To download the complete study, please visit here.

To review the complete release, please visit Revenue Science here.