ClickZ: Behavioral Targeting Study Reveals CPM Lift

Advertising.com conducted some tests of its behavioral targeting performance on its own network, finding that targeted ads out-performed normal placements at least several times over. Behavioral targeted ads (impressions targeted to people who had, for instance, previously abandoned a registration process) were served for one advertiser that then saw a tripling of clickthroughs and more than two and a half times the conversions. Factoring in costs, the behavioral element proved to be about 167 percent more efficient.

Another advertiser selling goods online saw a more than 20 times improvement in conversions and a doubling of clickthroughs. Advertising.com would not reveal the advertisers or even categories used for the study.

Perhaps most interesting in the study is the comparison of targeted versus non-targeted media costs. On the Advertising.com network, one advertiser saw a $1.49 CPM generally, with a $3.98 CPM for the targeted impressions. Another advertiser went from a $0.55 CPM to a $3.44 CPM. While prices vaulted upward by two to eight times, it appears the behaviorally targeted media could have cost a good bit more and still been a rational decision for the advertisers.