Contextually targeted ads more likely to drive consumer clicks

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Contextually targeted ads more likely to drive consumer clicks

Consumers are more likely to respond to contextually targeted online ads than demographic, geographic, or behaviorally targeted ads, according to a survey by market research firm Synovate. In the survey of 1,000 adults, 62% said they were likely to respond to contextual ads, 28% said they were likely to respond to demographic targeting, 24% said geographic targeting, and only 18% said behavioral. The survey also showed that women were slightly more likely to respond to contextual targeting than men (63% vs. 60%). Age also played a factor in consumer responsiveness to targeted ads. Behavioral targeting was three times more popular among people aged 35-44 than those aged 18-24 and demographic targeting was almost twice as important to the older group, according to the survey. Synovate conducted the survey for online media and marketing firm Vendare Media.

 

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Consumers Twice as Likely to Click When Contextual Targeting is in Play, New Traffic Marketplace Targeting Study Reveals; Three-Fifths Say 'Subject Matter' Matters Most in Online Advertising; Other Forms of Targeting Also Popular with Affluent Consumers

Business Wire via NewsEdge Corporation

EL SEGUNDO, Calif.--(BUSINESS WIRE)--March 21, 2006--Engage consumers' interest and they'll click your ad - and among the best ways to pique their interest is to link ads to subjects consumers care about.

That's the principal finding of a new nationwide survey of consumer attitudes online, conducted among 1,000 adults in late January by market researcher Synovate for Traffic Marketplace, the ad network division of Vendare Media (www.vendaremedia.com) and a premier Internet ad distribution network. Three out of five adults prefer contextual targeting - more than double the number who respond best to demographic, geographic or behavioral targeting.

When asked about the type of targeted online ad they are likely to respond to, 62 percent of consumers cited contextual -- "a subject of particular interest to you." That's more than twice the number who engage based on demographic criteria (28 percent) -- "a specific group you may be a member of." While local is all the rage - at least in terms of search -- just 24 percent of those surveyed said they respond most to geographic targeting ("businesses in your local community"); 18 percent said they were most apt to respond to behavioral targeting (ads based on "your past behavior on a given website").

The market remains fluid, however. In what may be an indication of the state of consumer sophistication about targeting in general, fully one-third of respondents weren't sure or had no opinion on what method moves them most.

"When you present advertising on top-of-mind topics, consumers respond," said Lynn D'Alessandro, Vice President, Sales, for Vendare Media's Traffic Marketplace. "Contextual advertising matches your messaging with pages on related topics, and you can't really get any more relevant than that."

Although contextual advertising is consumers' number one choice across the board, it's far from the only way to reach the affluent, well-educated consumers that advertisers prize. Those with annual household incomes above $75,000 and those with post-graduate degrees are roughly twice as likely to respond to demographic, geographic and behavioral targeting as their counterparts at the bottom income and educational levels. Women are slightly more likely to respond to contextual targeting than men (63 percent to 60 percent).

"Targeting isn't an either-or decision, so it's best to mix and match targeting tactics -- especially when it comes to educated, prosperous consumers who simply won't respond to messages that aren't personally relevant," D'Alessandro said. "If your messaging says 'we know what's on your mind,' plus 'we are you,' 'we are where you live,' and 'we are ready to handle your online needs,' you have four good shots at reaching your best customers."

Among other findings of note:

-- Contextual targeting varies according to racial makeup: 72 percent of nonwhites respond to relevant subject matter, against 60 percent of whites.

-- Those employed part time are significantly more likely to respond to demographic targeting than those in any other employment category (by as much as a 15 point margin)

-- Demographic targeting is nearly twice as important to those in the 35-44 age bracket as to those ages 18-24.

-- Geographic/local targeting is second only to contextual among those in the West, while demographic targeting is relatively more appealing among those in the Northeast, the Midwest and the South.

-- Behavioral targeting was three times more popular among the 35-44 age group than with the 18-24 crowd.

Traffic Marketplace offers InFocus(TM), the industry's first integrated targeting solution that leverages all four methods: contextual, demographic, geographic and behavioral. Powering the integrated suite of services is Vendare Media's top-ranked proprietary and extended media networks, which provide access to more than 50 percent of the Internet.

For a copy of the survey data, please send an email request to: info@edgecommunicationsinc.com.

About Vendare Media

Vendare Media is a leading online media and marketing company providing solutions for brand marketers, direct marketers and web publishers. Reaching more than 120 million consumers worldwide every month through its proprietary and extended media networks, Vendare Media provides advertisers and publishers with a suite of online solutions including display advertising, co-registration marketing, email marketing, search marketing, promotions and advergaming. The company, founded in 1999, is majority-owned by Idealab, a leading creator and operator of technology businesses.

Vendare Media, which employs some 200 people, is headquartered at 2101 Rosecrans Ave., El Segundo, Calif., 90245, with additional offices in San Francisco and New York City. The company can be reached at 310-647-6000, or on the Web at www.vendaremedia.com