Survey: Behavioral ads boost conversions

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Kennebunk, Maine—Behaviorally targeted display ads prompt conversions at more than twice the rate of nontargeted ads, according to a study by the Network Advertising Initiative, an association of advertising networks.

The study, “The Value of Behavioral Targeting,” which examined activity and advertising costs at 12 NAI member advertising networks in 2009, showed an average conversion rate for targeted ads of 6.8%, compared with 2.8% for nontargeted ads.

The survey also showed that targeted ads cost advertisers more than twice the price of usual run-of-network ads placed across an ad network’s entire Web site inventory. In the study, the average cost per thousand impressions (CPM) for behaviorally targeted ads was $4.12, compared with a CPM of $1.98 for run-of-network ads.

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