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Study suggests contextual ads are more cost-efficient than behavioral advertising | Ad Age

A new study from GumGum sought to answer the question, and worked Dentsu Aegis and brands such as Sephora to find out.

 

Contextual targeting was more efficient than behavioral targeting in cost-per-click (CPC); cost-per-viewable impression (vCPM); and the cost associated with reaching the intended demographic of the brand (eCPM), according to the study; “CPM” refers to the cost of showing an ad a thousand times.

 

Specifically, the average CPC cost was $.80, while CPCs for behavioral targeting came in at $1.53 — a 48 percent delta, according to the study. The cost-per-viewable impression was also 41 percent less than behavioral targeted ads ($5.85 versus $3.44 on a vCPM basis). Meanwhile, contextual eCPMs on average cost $4.36 — about 36 percent lower than behavioral eCPMs ($6.85).

CYDigital/marteq.ios insight:

Granted the sponsor of the study is in contextual advertising, but the study was done in an unbiased fashion.  Excellent data, and a compelling argument.

 

Join the marteq.io white list to receive pre-launch benefits: https://un.marteq.io/wl1/ #martech #marketing

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Context Matters! - IAS Insider

Context Matters! - IAS Insider | The MarTech Alert | Scoop.it

Consumers prefer brands to target them based on their behaviour and context:
48% prefer contextually targeted ads
35% are receptive to ads based on their previous purchases 
34% want to be targeted based on their browsing history

 

Consumers are growing more aware of their data privacy online
87% are aware websites and apps collect and share their data for advertising purposes
67% are confident in the security of their data
50% believe the security of their data is their own responsibility

 

There remains resistance from consumers around the sharing and understanding of how their data is used :
62% are still clearing/deleting their browser history
61% would prefer a less targeted ad experience, rather than sharing their data
33% are not even aware of any data privacy regulations

CYDigital/marteq.ios insight:

There is a HUGE opportunity when providing contextually targeted ads, e.g., it's possible to send an ad while the consumer is looking at a competing item!

 

marteq.io delivers zero party data solutions that significantly reduce digital advertising costs. Learn more: https://www.marteq.io #martech #marketing #adtech

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