Online Advertisers Are Bullish on Behavioral Targeting, SEMPO 2007 State of the Market Survey Data Reveals
Some 80% of Advertisers Polled Are Willing to Pay More for Behavioral Targeting, a Strong Indication of a Major Online Ad Spend Trend
Wakefield, MA, May 15, 2008 – Four out of five advertisers are willing to increase their online advertising budget in order to add behavioral targeting to their pay-per-click campaigns, according to SEMPO, (Search Engine Marketing Professional Organization), www.sempo.org, which conducted a 2007 state of the market survey of 867 search engine advertisers and search engine marketing agencies.
The survey also found that 57% of online advertisers polled were willing to spend more on demographic targeting, such as age and gender. Advertisers, on average, would pay 11% more for both behavioral and demographic targeting. While advertiser interest in behavioral targeting is very strong, actual investment is still low, according to the survey respondents. Some 40% of the respondents said they are not currently targeting or retargeting searchers but they plan to in the next 12 months.
Retargeting reaches "in-market” consumers who, for example, have just searched for a specific product. Advertisers can send targeted display ads to these in-market consumers, who may have visited the advertiser’s site – or a partner site – but not converted.
Dayparting showed considerable less interest: only 30% indicated they would bid more for clicks based on dayparting, and on average, said an additional 9% budget spend was their comfort level.
"The next best thing to an impression or click from a search result is the ability to serve a highly relevant and targeted graphical or textual ad to a consumer while they are still very interested in their search,” says Kevin Lee, a member of SEMPO’s board of directors and its research committee. Lee is chairman and CEO of Didit.
"Online advertisers are always faced with the challenge that there is a finite number of searches occurring daily. Behavioral targeting gives advertisers an opportunity to expand the search marketing universe,” says Lee. Many analysts believe that, when combined with demographic targeting, behavioral targeting of searchers provides a significant growth opportunity for the media industry, Lee notes.
The 2007 SEMPO global survey of online marketers was conducted by Radar Research and was administered via IntelliSurvey, Inc.
Survey and research findings released earlier showed:
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