Effective Audience Targeting Leads to Bigger Display Budgets

Display advertising has been around for many years, however the total impact to business has been been measured in click through.  Needless to say the impact of banner advertising is much more than click through, but being able to deliver the message to the target market has allowed for display advertising to garner more of businesses marketing budgets.

Agencies, advertisers win additional display budget based on audience targeting effectiveness, reach.

In the early days of online display advertising, marketers equated a target audience with the demographic of a selected premium site placement. But in today’s data- and technology-driven world, display advertisers can supplement and even substitute standard premium buys with audience targeting.

With audience targeting, advertisers tap into a wealth of first-hand and third-party data, including demographic, geographic or behavioral audience information to identify potential audiences or retarget previous site visitors.

This year, nearly all (97%) display advertisers will use audience targeting, according to DIGIDAY and PubMatic.

Not only is audience targeting popular with display advertisers, but data from DIGIDAY and targeting provider/audience aggregator AudienceScience, found it also drives additional display spending growth: 48.2% of agencies and 52.8% of advertisers said targeting use had increased display budget.

Ways that Audience Targeting Campaigns Affect Online Display Budgets According to Advertisers and Agencies in North America, April 2011 (% of respondents)

Marketers were most willing to allocate additional budget based on audience targeting’s effectiveness. In addition, 28% of agencies and 21% of marketers said the technique’s ability to afford greater audience reach justified further spend.