Behavioral Targeting and Reducing Ad Spend? Nah

Robert Moskowitz introduces a piece on iMediaConnection reflecting industry insiders weighing in on whether behavioral targeting enables advertisers to spend less while getting better results.  It’s a light a fluffy piece, citing insight from Bill Gross at Revenue Science, Emily Reilly at Jupiter Research and Dave Hallerman at eMarketer.  The gist of it all is that Behavioral targeting allows an advertiser to ‘get more for their money,’ insinuating that they could reach goals with less dollars. 


 


Of course that assumption is off.  When budgets are set, advertisers will spend those dollars whether performance is better or worse.  Subsequent budget planning will be based on those results.  Therefore if an advertiser can get more accomplished with fewer dollars, they will just get even more accomplished with the budgets that were planned.  Kudos! 


 


Online spend is on the rise.  If it is becoming more efficient to generate better quality results through BT, then spend will likely increase to generate even more results. 


 


Of course, the flip side is that publishers are on to this as well and the cost of BT is on the rise as well!  Publishers are not making the money on BT that they had hoped.  It requires a lot of $0.30 CPM impressions to get that $30 CPM BT impression served so the net is not great.  Therefore there are additional fees being slapped on the advertiser and there are net fees being included as well to raise the cost and justify the capability for the publishers.

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