Companies are slightly more satisfied with their ability to measure marketing ROI, according to the "2006 Marketing ROI and Measurement Trend Study" by MarketingProfs and the Lenskold Group. The study was based on a survey of more than 800 marketing executives worldwide. It found that companies that describe their ability to measure financial returns from marketing as either "as good as it needs to be" or "a real source of leadership" jumped from 8% in 2005 to 16% in 2006. Also, companies indicating their ability to measure financial return on marketing as "a long way from where it could be" dropped from 53% in 2005 to 42% in 2006. The study also found that 74% of those companies measuring financial returns said profits can increase by more than 10% with better measurements to capture marketing's contribution to sales.
ValueClick introduces behavioral targeting
Online advertising company ValueClick announced the launch of User Retargeting, a behavioral targeting product that lets advertisers reach their target audience based on users' previous online behavior. Users are identified as having visited an advertiser's site, then are "retargeted" with customized ads based on their interest in an advertiser's product or service. Campaigns using User Retargeting have resulted in up to 26% improvement in the average cost per visitor and up to 59% improvement in the average cost per sale, according to ValueClick.
Behavioral targeting spend to reach $2 billion
Advertisers will drop about $1.2 billion on behavioral targeting this year, up from $925.0 million in 2005, according to a report released recently by Internet research company eMarketer. By 2008, ad spend on behavioral targeting will jump to $2.1 billion, according to eMarketer. About 62% of 1,000 adults surveyed said contextual targeting-placing ads relevant to the pages displayed online-would be more likely to generate user response, as opposed to 17.5% of respondents who said the same about ads that target consumers based on their Web behavior. EMarketer said spending on contextual ads will surpass $1 billion by the end of 2008.
Return Path debuts e-mail sender reputation monitor
Return Path, an e-mail marketing company, has launched Sender Score Reputation Monitor, an e-mail reputation management system that is based on calculating a "credit score" for e-mail. The score is based on 60 data points from more than 50 million e-mailboxes to quantify a mailer's reputation. Data gathered include complaint rates, security practices and unsubscribe functionality.
Online ad revenue up 30% in 2005
Internet ad revenue totaled $12.5 billion in 2005, up 30% over ad revenue in 2004, according to the "Internet Ad Revenue" report by the Interactive Advertising Bureau and PricewaterhouseCoopers. In the fourth quarter, Internet ad revenue reached $3.6 billion, up 34% over revenue in the fourth quarter in 2004. Keyword search grabbed the lion's share of online advertising in 2005, making up 41% of all Internet ad revenue. Display advertising, including all banner ads, sponsorships and rich media formats, made up 34% of total online ad revenue. Classified ads contributed 17% to total revenue. The full report is available at www.iab.net.