Jupiter Research Study on Behavioral Targeting in Advertising
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Jupiter Research Study on Behavioral Targeting in Advertising
- 1. Behavioral Targeting & The Purchase Funnel Opportunity Prepared for: Revenue Science by JupiterResearch
- 2. Key Questions • What type of advertising drives interest and action? To what extent are online consumers receptive to different advertising strategies? • How large is the BT receptive audience and how can this group be characterized – in particular what is this group’s propensity to shop online? • How does the Internet fit into daily shopper activities? How are users leveraging different tools (as a compliment or outside of Search?) • How does the Internet fit into the shopping process? And how does the shopping process vary by product category? • To what extent is there an opportunity to reach online shoppers through behavioral targeting?
- 3. Methodology* • AOL and Revenue Science commissioned JupiterResearch to conduct an independent unbiased study to address the study key questions. • This effort leveraged an online consumer survey – developed by JupiterResearch – for the primary research effort. • Online survey specifications: • Timeframe: April 2007. • Number of respondents: 2035 representative of the online consumer population. • Number of questions: 25. *Note: This is an abbreviated methodology; the full version is available upon request
- 4. Online Advertising And Behavioral Targeting Study Highlights
- 5. Key Findings More consumers are consistently more receptive to behaviorally targeted ads than to contextual advertising. In fact, behavioral outperformed contextual by as much as 22 percent. Consumers who prefer BT ads represent a higher value audience making them a more attractive online advertising target Represent a higher income bracket Spend more money online Shop online more frequently 93% of the BT receptive audience shops online!
- 6. Moving Forward Online shoppers are a moving target but the opportunity is there to provide a relevant experience and win their attention by: Providing ads related to considered purchases during their daily activities Leveraging the general online activities and habits of online shoppers Taking advantage of the multiple steps of the purchase funnel where online shoppers leverage the Internet for more than just purchasing online – also for researching their purchases (whether the purchase execution is online or offline)
- 7. Two-Thirds Of Online Users Have Acted As A Result Of Viewing Online Ads Entered a sweepstakes 33% Visited Web site related to ad 32% Used search to find out more about 27% product/service Purchased product/service online 21% Registered with site for coupon/discount 17% 66% of Played a game online 17% Online Users Purchased in a physical store 14% Told a friend about ad/product 12% Forwarded ad to a friend 8% Called toll-free to order 7% None of the above 34% 0% 20% 40% 60% 80% 100% Percentage of Online Users Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 8. Behavioral Ads More Likely To Receive Attention Than Contextual Ads Overall Represents Top 2 Box Scores: Strongly Agree, Agree Behavioral Ads 63% Contextual Ads 49% 0% 20% 40% 60% 80% 100% Percentage of Online Users Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 9. More Online Shoppers of All Types Are More Receptive To BT Ads Represents Top 2 Box Scores: Strongly Agree, Agree 78% Frequent Shoppers 72% Contextual Receptive Behavioral Receptive 65% Infrequent Shoppers 50% 36% Non-Shoppers 20% 0% 20% 40% 60% 80% 100% Percentage Of Online Users Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 10. Online Shopping And The Purchase Funnel
- 11. Progress Of The Purchase Funnel Decision Stages Inspire/Initiate Compare Execute Review Check Find a general price, specific product features, store or info See etc. Narrow site Make what’s down purchase available choices Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 12. Online Shoppers Large Percentage Of The Online Population Researched and purchased 64% Researched not purchased 18% 88% have shopped online Purchased not researched 7% Neither researched nor purchased 12% 0% 20% 40% 60% 80% 100% Percentage of Online Users Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 13. Online Shoppers Visit Several Sites In A Typical Day 1 to 5 50% 6 to 10 27% 11 to 15 11% 48% visited more than 5 16 to 20 4% sites in one day 21 or more 6% E-mail or IM only 2% 0% 20% 40% 60% 80% 100% Percentage of Online Users Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 14. Half Of Online Shoppers Shop Online At Least Once Per Month Less than once per month 50% Once a month 26% Every other week 13% Once a week 5% More than once a week 5% Every day 2% 0% 20% 40% 60% 80% 100% Percentage of Online Shoppers Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 15. Online Purchase Research Activity Less than one day 33% 1 to 3 days 29% 4 to 7 days 14% 1 to 2 weeks 10% 3 to 4 weeks 6% 38% reported 5 to 6 weeks 1% the purchase process lasted 7 to 8 weeks 1% at least 4 days 9 to 12 weeks 1% More than 12 weeks 5% 0% 20% 40% 60% 80% 100% Percentage of Online Shoppers Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 16. Limited Opportunity to Connect With Online Researchers Once 28% Twice 29% Three times 23% Four times 8% Five times 2% More than five times 10% 0% 20% 40% 60% 80% 100% Percentage of Online Researchers Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 17. Behavioral Ads/Promotions More Likely To Be Noticed By Category Purchase Intenders 79% Financial services 69% 77% Auto 59% 73% Travel Contextual Receptive Behavioral Receptive 59% 79% Health products 68% 76% Consumer electronics 61% 74% Computing products 57% 77% Telecommunications 57% 0% 20% 40% 60% 80% 100% Percentage of BT and CT Receptive Segments Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 18. Behavioral Ads/Promotions More Likely To Be Noticed By Category Purchase Intenders 72% Entertainment 56% 78% Classifieds 62% 71% Pharmaceuticals Contextual Receptive Behavioral Receptive 58% 71% CPG 55% Fashion/ style 75% products 61% 73% Education services 55% 73% Government services 51% 0% 20% 40% 60% 80% 100% Percentage of BT and CT Receptive Segments Source: AOL/Revenue Science/JupiterResearch Consumer Survey (04/07)
- 19. More Information Marla Schimke Marlas@revenuescience.com