By Tom Ryan
Online consumers are more receptive to behaviorally targeted ads than contextual advertising, according to a new study.
The Jupiter Research study prepared for Revenue Science, a digital media company, found that 14 percent more online consumers are more receptive to behaviorally targeted ads than to contextual ads, representing 63 percent of the total audience. It also found that audiences receptive to behavioral ads are of higher value than those who respond to contextual ads.
Contextual advertising focuses solely on content. As an individual browses the web, they are presented with advertisements that are relevant to what they are reading.
By comparison, behavioral targeting is based on a marketer determining if a user spends time searching for a particularly product - say a new car on the Toyota website - and then visits a content site a short time later. At the content site, users would them be served with advertisements enticing them to purchase a Toyota car. Although behavioral ads clearly enable advertisers to reach consumers on a much more personal level, the downside is that many consider it invasive.
In Jupiter's study, more than 2,000 participants were polled in April on their receptiveness to different types of ads, their interest levels, and what type of ads are likely to lead them to action.
The survey found that behavioral targeting outperforms contextual advertising in gaining consumer attention by at least 10 percent across 14 major product categories. Among core brick & mortar categories, behavioral ads outperform contextual ads online by 15 percent for consumer electronics, 16 percent for CPG, and 14 percent for fashion.
The study also found that behaviorally-receptive audiences are more likely to have a higher income, spend more online, and shop more frequently than others.
"This study also reaffirms our belief that internet users favor advertising relevant to them personally and that advertisers should employ behavioral targeting campaigns to maximize their return on investment," said Marla Schimke, VP of marketing at Revenue Science.
Discussion Questions: Does the study's findings that consumers respond better to behavioral ads than contextual ones ring true with you? Do you consider behavioral ads invasive? What else would you like to know about how behavioral ads work versus contextual ones before deciding which is the best way to reach consumers?
- Revenue Science Study Shows Online Consumers More Receptive To Behaviorally Targeted Ads Than Contextual Ads Across All Major Categories - Online Behavioral Ads Beat Contextual Ads, Survey Says - Revenue Science
- Jupiter Research Study, Behavioral Targeting & The Purchase Funnel Opportunity - Revenue Science (Reg. required)