TARGETING
Published: February 21, 2008
A revenue-generating idea for publishers
 

Here are five ways behavioral targeting can boost a website's bottom line.

Since the onset of publishing (initially in the magazine industry), publishers have been working to increase their revenues in order to be able to commit more resources to editorial. In the world of online publishing, where most publishers have decided not to charge subscriptions, the main -- if not only -- source of revenue comes through advertising, be it through banner, text and in-text ads, sponsored content like white papers and webinars or email campaigns to subscribers.

To increase revenue, publishers have had two options: (1) to increase the quantity of ads and ad-sponsored vehicles or to increase the number of readers exposed to the ads, or (2) to increase their advertising rates. Most publishers have traditionally selected one of these two strategies.

With behavioral targeting, publishers have a third option. Here's why:

1. Behavioral targeting enables generating greater revenue per ad unit vs. non-behaviorally targeted advertising
If knowledge is power, then smarter, more knowledgeable advertising gives the publisher more bargaining power when closing ad sales deals. Behavioral targeting gives the advertising message a frame of reference, which increases the value of the specific advertising message and the likelihood that the website will be able to generate a sale from this particular ad.

2. Behavioral targeting enables increasing ad revenue without increasing the number of ads shown
Behavioral targeting companies enable publishers to serve a delayed ad to visitors after they have left the publisher's website. This enables the publisher to generate advertising revenue without serving any additional ads on their sites (while providing ad networks with a way to generate revenue from less-desired content).

3. Behavioral targeting provides a new inventory of ads
For a publisher not relying on behavioral targeting, the addition of BT provides a brand new revenue stream. In the same way that publishers are adding a range on contextual advertising programs in order to increase ad revenue, publishers can also add behavioral targeting to increase revenue.

4. Behavioral targeting can be implemented without creating user profiles and without data integration or cross-site information transfer
The images of Orwell's "Big Brother" or East German Stasi police are not relevant to all behavioral targeting programs. Some programs are reactions to single event actions. This could be showing a car ad this afternoon to a person who visited a car website this morning, regardless of the specific behavioral characteristics of the person.

5. Behavioral targeting can be controlled by the publisher
The days when publishers have no say over how behavioral targeting operates on their sites are over. Behavioral targeting companies can be held accountable and provide transparency to their publishers in order to ensure that the highest standards of user privacy are followed.

For publishers that have been reluctant to try behavioral targeting, imagine a scenario in which your boss offers you a raise and hires someone to be your assistant. Would you say no to that? Then it's time to re-visit behavioral targeting on your website.

Meir Zohar is CEO and founder of eXelate, the creator of the world's first exchange for targeting data. Read full bio.