• by Gavin O'Malley  @mp_gavin, June 15, 2009

Web site testing and personalization startup Amadesa on Monday announced the launch of an automated, site-side behavioral targeting capability.

The algorithm analyzes hundreds of anonymous user data points in real time in an attempt to learn which campaign promotion, category image or other content element is most compelling to online consumers, and automatically matches the best content to each visitor in an effort to drive engagement.

Smooth Fitness, an online retailer of home fitness equipment, is among a small group of clients that are already using the behavioral targeting technology. The e-tailer claims to have achieved a 78% aggregate click-through rate increase, and a nearly 20% increase in average order value as a result.

This is achieved by "incorporating principles more commonly seen in advanced advertising solutions and applying them on marketers' sites," according to Rita Brogley, CEO of Amadesa.

The Evanston-based Amadesa charges clients -- including Pfizer, AOL and Jdate -- between $2,000 and $15,000 per month for software services like product recommendations, improved online shopping carts, and personalized content.

Last year, the company gained some notoriety for its testing approach to shopping cart optimization by creating what it calls "virtual layers" on top of a given page, which can test a large range of variants on the fly.

Founded in Israel in 2004, Amadesa raised $5.4 million in its first round of financing led by Carmel Ventures.

The Web optimization market is attracting more attention as of late. Earlier this year, WPP Group made a strategic investment in publicly traded Web analytics firm Omniture. The deal, which involved a $25 million stake in Omniture's common stock, included the development of new analytical tools by combining those of the two companies.