• by Joe Apprendi , Op-Ed Contributor, February 12, 2008

Not that behavioral targeting (BT) needs any more press, but the adoption and popularity of this proven method to deliver targeted display ads to millions gained exponentially in 2007.

Today, BT is largely enabled and brought to market by leading portals, savvy publishers and opportunistic ad networks, but there may be another well-positioned, capable party ready to enter the mix this year: The agencies and/or advertisers themselves. What's more, these players have the power and money to drive this market to the next level.

As BT practitioners, agencies and advertisers have operated under the radar over the last several years -- working the system through a myriad of companies sourcing, segmenting and packaging behavioral targeting audiences to best meet the objectives of their media plans. But it's important to remember that there is a wealth of information, a virtual behavioral targeting blueprint, within every media buy.

Targeted placements by site, section, search category, demographic profile and more, are begging to be transformed into bits and pieces of BT data. A simple pixel properly segmented and placed in the creative can yield desirable, re-marketable audience clusters via any third party distribution partner, basically enabling the equivalent of a two-, three-, four- or five-for-one for every purchased ad impression. This truly sounds like a smart way to leverage an enormous media investment and increase the effectiveness of the overall online marketing campaign.

So, why aren't more advertisers doing it?

Well, it's not for lack of available ad technology or willing ad network partners. Ad networks provide an intelligent and scalable way to leverage the targetability of a well-planned media buy. In fact, this audience targeting segment of the overall media buy is a great complement to how they work directly with publishers and portals on site-specific, high CPM buys.

If it makes sense, what's the hold-up?

For years, the debate about this topic has been percolating. Does the advertiser have the right to leverage behavioral data gleaned from a paid-in-full media buy? Many BT players believe that the data shouldn't be shared because this would break down lines of trust between partners. On the flip side, others believe that there's so much opportunity for super-targeting that by not sharing the data seems like a waste.

So the debate goes on: between agencies and publishers, next might be the advertisers and the publishers, and then even the ad servers and ad networks. I don't believe it will come to this, but it can't be discounted as a possibility.

This isn't the same situation that we saw years ago when companies unbeknownst to the consumer downloaded applications for collecting data (a.k.a., spyware) to desktops. This is completely different. There are guidelines and industry best practices in place for the use of BT data, and whether it's the advertisers or publishers using the data, both will comply with Federal Trade Commission BT guidelines. With tight adherence to these guidelines, there should be no concerns around consumer privacy or need for government interference.

Without policies, standards or precedent, today's negotiations are taking place on a case-by-case basis, between publisher and advertiser based on the parameters of a specific media buy. Some publishers are already clear on their position: the data is not for sale.

We'll see how this unfolds in 2008, but I'm certain we're just at the beginning stages of this burgeoning debate. Both sides are readying their positions and preparing for their opening remarks. As far as the ad networks and ad technology companies go, we stand willing and able to support both sides of the equation. All we hope for is a swift resolution as it's certainly a win for us either way. In fact, when the debates end and business moves forward I think both sides will realize it's a win-win for them as well.

Joe Apprendi is founder CEO of Collective Media, a leading online advertising network specializing in premium publishers and leading advertisers. Apprendi has held senior management and board-level positions within the industry including CEO of Falk North America and SVP of North American Sales Operations at 24/7 Media.