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Use of enriched Data Segments will grow Targeted Advertising to $1.1 Billion by Years End

by Scott Hoffman on August 16, 2010

Explosive growth of data mining, audience correlation and segmentation data is becoming increasingly important to online advertisers, the role of targeting media has grown more central.

In a recent study conducted by eMarketer, 14.2% of display ad spending in 2010 will use some form of consumer behavior data indicating interest or intention to target ads. That will grow to nearly 20% by the year 2014 (a figure which I personally think is under reported.) Display advertising includes banners, rich media and video units. (see chart below)

U.S. online display ad spending with behavioral components that look at audience interests and intentions will reach more than $1.1 billion in 2010 and will rise to at least $2.6 billion by the end of 2014. This study mirrors research from Private Equity Firm VSS.

  • jonathanmendez

    The rate of growth for targeting on a stand alone percentage basis is high but this seems misleading when you look at its market share growth in comparison to the size of the overall market – especially on a dollar:dollar basis. When you consider its place in the overall online ad market (throw in Google/Search and it’s growth ~ 25% a year, Email which is roughly the size of display) the numbers creep down even more. 3rd party targeting is a nice evolutionary step for display but revolution is what’s needed to save it as a marketplace against the rise of singular channels (Apple/Google) that will begin to hoard ad dollars.

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