Tuesday, October 17, 2006

This is why we test

In a synopsis of the DMA06 activity and other news, results of a new study on targeting was highlighted. The point is that until we try, we won't know.

Study Finds Customized Segmentation Beats Automated Targeting

Behaviorally targeted ads are more likely to generate higher conversion rates in customized market segments, compared to automated pre-packaged rules-based targeting, according to new study findings released by BL Labs of San Jose, CA. The study concludes that online advertising networks need to focus on custom segmentation and data analysis to optimize the nuances of behavioral targeting. Although online ads placed with contextually relevant content are likely to generate higher click through rates, ads shown with unrelated content typically pulled higher conversion rates. For example, the study found that advertising targeting travelers achieved the highest click through and conversion rates when placed on food Web sites.

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