SOURCE: eMarketer

June 12, 2007 09:00 ET

Tremendous Growth in Store for Behavioral Targeting Online

But Increased Ad Efficacy Is Offset by Privacy Concerns

NEW YORK, NY--(Marketwire - June 12, 2007) - A rush of brand-focused advertisers to the Web has all the major portals maneuvering to offer the most effective online ad targeting solutions. The Google-DoubleClick, Yahoo!-Right Media, WPP Group-24/7 Real Media and Microsoft-aQuantive deals are all attempts to own the best technology and data-analysis tools for online ad targeting.

Portals and ad networks are striving for models that not only react to, but predict consumer behavior, promising marketers to reach a more engaged audience with fewer ad impressions, according to eMarketer's report "Behavioral Targeting: Advertising Gets Personal."

US spending on behaviorally targeted online advertising will soar from $575 million in 2007 to $1 billion in 2008. Driven by advertisers' growing enthusiasm for establishing and building brands on portals and other Web sites, that figure will nearly quadruple to $3.8 billion in 2011.

As more Web sites scramble to make money from advertising, behavioral targeting and auction-based ad exchanges will become essential for publishers to monetize their "long tail" pages, the non-premium or remnant inventory that is sold at low cost or remains unsold.

All ad targeting depends heavily on user data. Behavioral targeting in particular depends on a plethora of information about where users surf, how long they stay there, what they click on and the keywords they use to search. This data is typically gathered and tracked using cookies stored on an individual's computer.

Although consumers may find ads that are more relevant to their interests, "When it comes to data about Internet users," says David Hallerman, senior analyst and author of the report, "advertisers most likely to succeed over time are those who employ transparency of intent, clarity of usage, freedom of choice and mutual understanding of the implicit bargain among consumers, content providers and advertisers."

In the report:

--  What types of ad targeting are most effective?
--  Why is behavioral targeting often at the forefront of techniques?
--  What is driving the growth of behavioral targeting?
--  Will privacy concerns slow down, or even derail, some online ad
    targeting methods?
To receive the full report or to speak to Mr. Hallerman, call or e-mail, the media contacts below.

About eMarketer

eMarketer is "The First Place to Look" for market research information related to the Internet, e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 2,800 sources, and brings it together in analyst reports, daily research articles and the "eStat Database" -- the most comprehensive database of e-business and online marketing statistics in the world. Visit for more information.

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