Content Targeted Text Advertising is the Fastest Growing Online Media
Content-targeted sponsored links such as Google AdSense, Kanoodle BrightAds, Marketplace, Quigo, and Overture Content Match will become the fastest growing interactive marketing tool over the next 12 months, according to the first-ever Kanoodle Content Targeting Survey. An additional 20% of advertisers surveyed will be incorporating content-targeted sponsored links into their overall marketing programs, in comparison to other interactive marketing tools including: display ads (14%), e-mail marketing (12%) and sponsored links on search results pages (15%).
Of the nearly 70% of advertisers surveyed that used sponsored links in 2004, more than 26% spent $100,000 or more on their campaigns. Over the next 12 months this spending will increase by close to 10% – beating the overall advertising industry, which is expected to grow at 6%.?
“This research confirms that advertisers see sponsored links on content pages as a big opportunity to drive sales and build brand equity,” says Lance Podell, chief executive officer of Kanoodle. “It’s exciting to see that advertisers recognize the different methods for content targeting and the overall opportunity to build their business.”
The survey, produced in partnership with JupiterResearch, is the first-ever study of advertiser trends in content-targeted sponsored links. Its focus was to examine how advertisers and direct marketers used content-targeted sponsored links as part of their overall marketing plan in 2004 and their intended use in plans for 2005.
Broad Business Benefits
As more sophisticated advertisers utilize content-targeted sponsored links, they are noticing that there are a number of broad business benefits associated with this form of online marketing. In fact, when asked about the added benefits that content-targeted sponsored links provide, 40% of advertisers surveyed reported that content targeting increased their overall sales and revenue. Of this group, 55% of larger advertisers (1,000+ employees) reported an increase in overall sales and revenue from content-targeted sponsored links.
These advertisers have also found that content-targeted sponsored links can be used to directly improve their brand awareness. In fact, 46% of respondents said that they use content-targeted sponsored links as a vehicle for increased brand exposure.
Larger Advertisers Come Online
As the sponsored links industry continues to grow, larger, more sophisticated advertisers are embracing content-targeting and the value it brings to their overall marketing campaigns. As this group continues to invest more in sponsored links, there is a growing need for content-targeting networks to offer maximum control over ad purchasing and targeting, as well as accepted measurement and tracking tools.
The most important characteristics that these larger advertisers surveyed look for when choosing a sponsored links network for content targeting are quality of distribution (57%), bid management and campaign tracking tools (48%) and the ability to treat search and content listings separately (38%).
Beyond Search…and Context
As the search market matures, advertisers are looking beyond search results to content pages to find more quality distribution for their sponsored links. However, since different types of content pages require different targeting methods for maximum effectiveness, advertisers are beginning to recognize the need for methods beyond editorial context, which was the first method for targeting sponsored links on content pages. 63% of advertisers surveyed would like the ability to target sponsored links based on user behavior, and 49% would like the ability to target based on geographic location.