With behavioral targeting, ads get served to you based on the behavior you exhibit via your clickstream, not based on the site you’re on or what the ad network may know about you via your cookie trail. In theory, this allows not only more relevant ads to be shown, but allows advertisers to place them on less expensive real estate, improving cost-per-click in both the numerator and the denominator. Personally I find video advertising intrusive, though, and a development that will drive advertisers to use more of it will, at least for me, make my web experience less productive and pleasant. A variant for advertisers to consider would be to serve the graphic ad with a link to “the videotape”. If the ad is truly relevant, as behavioral targeting promises, click-through rates should be quite high.
Tacoda's targeting and Tremor Network's in-stream ad-serving product give both companies a new offering to attract brand advertisers.
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