Behavior Matters

« The Gates (continued) | Main | Grammys »

Behavior Matters

I came across a great article this weekend in eMarketer.

The piece is titled Web Marketers Branch Out Beyond Banners.

That is not news as web marketers have been using other ad methods for years.

But the stats in the article are fascinating.

Here is a chart of the best performing categories of online marketing according to AdTech attendees in December 2004.

First of all, its my pleasure (as a large shareholder of two email marketing companies) to point out that emailing to house lists performs better than paid search (the current darling of online media).

But beyond that, my main point of this post is that behavior matters. The top three performing segments of online media are based purely on behavior.

First comes house lists. You don't get onto house lists in this post Can Spam environment without asking to be on them. Opting into an email list is behavior of the highest order. You are asking to get info mailed to you. No wonder they perform so well.

Second comes paid search. Paid search ads result from a person typing in a keyword in a search field. That's behavior of the second highest order. It's a consumer looking for information, possibly on your product or service. Again it's not surprising that these ads perform so well.

Third comes behavioral targeting. This technique involves the publisher storing profiles on a consumer's behavior and serving ads that are targeted to that behavior. This is less active behavior in some regards than the first two, but it's active behavior that's driving these ads and I am not surprised to see that this method performs almost as well as the first two.

As some readers of this blog know, we are investors in Tacoda, the leader in behavioral targeting, so I am pleased to see that the market has come to realize that behavioral is in the big leagues along with emailing to house lists and paid search. It's about time.

Comments (2) | | TrackBack (5)

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451b2c969e200e5503676e58834

Listed below are links to weblogs that reference Behavior Matters:

» blog=透明=信任=机会=钱 from keso
Ping Back来自：www.donews.net [Read More]

Tracked on Feb 14, 2005 8:27:14 PM

» The best way to spend on online advertising dollar from you can sleep when you're dead
The following stats from Ad:Tech's December conference clearly shows the pecking order for online marketing. Not surprisingly, a company's "email house list" (basically people with an ongoing relationship with a company) yields the highest success rat... [Read More]

Tracked on Feb 16, 2005 6:48:38 AM

» The best way to spend an online advertising dollar from you can sleep when you're dead
The following stats from Ad:Tech's December conference clearly shows the pecking order for online marketing. Not surprisingly, a company's "email house list" (basically people with an ongoing relationship with a company) yields the highest success rat... [Read More]

Tracked on Feb 16, 2005 6:49:49 AM

Tracked on Feb 16, 2005 6:51:53 AM

» Hail of bullets from Pegasus News
Lots of smart people are talking about concepts that relate to our ad model. Whether you call it pay-for-performance or [Read More]

Tracked on Feb 16, 2005 11:45:12 PM

Posted February 14, 2005 in Venture Capital and Technology

Comments

Though I would tend to agree that behavioral is working, but let's keep in mind that emails, in house or rented, and banners etc.. have been around for much longer than behavioral. Plus, behavioral is more a tactic so I am not sure it makes a ton of sense to compare it with banners or other formats. What if I do some rich media behaviorally targeted on email?...that day will come. The bottom line is that online advertising is slowly zeroing in on the holy grail: the relationship...I am surprised by affiliates beating the crap out of seo....

Posted by: Pierre Guillaume | Feb 14, 2005 9:00:19 PM

sagittario - scarica - scaricare - scherzi - scherzo - scorpione - screensaver - sfondi - sfondo - skin - skype - software

Posted by: sagittario | Sep 29, 2005 1:11:17 PM

A VC

Musings of a VC in NYC