Advertisers and agencies that have tested early online behavioral targeting services are seeing positive results, according to a new report titled "Effective Targeting" from JupiterResearch, which estimates that one in four online advertisers will be using behavioral targeting by 2007. When questioned about the effectiveness of online advertising campaigns, 88 percent of advertising agencies that have used some type of behavioral targeting in the previous 12 months said they are "very or somewhat satisfied."

Among agencies that did not use behavioral targeting, a significantly lower proportion - 56 percent - said they are "very or somewhat satisfied" with their online advertising efforts in the previous 12 months, according to JupiterResearch.

"Now is the time for publishers and service providers to capitalize on advertisers' optimism and offer a behavioral targeting solution," says Emily Riley, JupiterResearch analyst and the lead author of the report.

"Online advertisers are using behavioral targeting to uniquely build their brand, drive direct online sales and meet advertising goals," said David Schatsky, president of JupiterKagan. "As service providers and publishers develop their behavioral targeting offerings, advertisers must keep their specific goals in mind when selecting which service provider to engage."