Back to the September 2008 issue.

Online Display Advertising Gets Better With Age

(by Craig Cooke, CEO)

Online display advertising has been around for a long time, but gone are the days of the traditional 468×60 animated gif purchases as a run-of-network placement. This advertising medium has matured and is offering new methods of reaching target audiences more effectively.

One method of increasing online display effectiveness is through behavioral targeting. This is different than contextual advertising (which is a good method as well). Behavioral targeting displays ads to users based on their previous behavior related to search, visits, viewing and purchase history. This means a user might not be on a site that is contextually relevant to the advertised product or service. For example, a user might be on a music website, but due to the fact that they just purchased some home improvement products online, they may be served an ad promoting gardening supplies. The main premise is that users will purchase items relating to their past behavior.

“Retargeting” is a recent development that is gaining traction in the online display space. This involves serving ads to users that have previously visited a website but left without making a purchase. A couple of planets have to align in order for this to happen (actually, it’s not that unlikely), but once it does, the fact that the user delivered an advertising message to a company that they were genuinely interested in is very powerful.

A more recent development is personalized messaging within banners. The idea is to deliver ads that are personalized based on the user’s profile, making the banner more relevant to their needs. For example, a person that recently searched for “HD flatscreens” may see a banner ad for BestBuy that not only advertises BestBuy but delivers a message promoting HD flatscreens available at the store closest to the user.

Online display advertising is getting better with age. We will continue to experience further advances to the methods mentioned above but also in respect to interactivity and video. Technology is accelerating once again, and opportunities abound to take advantage of this medium, especially in a tough economy where every penny counts.





Statistics Corner

According to the Pew Internet and American Life Project, the percentage of users who use search engines on a typical day has increased from one third of all users in 2002 to 49 percent today.

According to a survey conducted by the Pew Internet and American Life Project, 13 percent of users surveyed said they visit social sites on a daily basis.

According to the Pew Internet and American Life Project, email is the biggest daily activity of Internet users.

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