Title: Behavioral Targeting – An Efficient Use of the Online Advertising Budget?
Authors: Hans-Christian Riekhof, Tobias Schäfers, Immo Eiben
Abstract
Behavioral targeting, i.e., the targeted delivery of online advertising based on user behavior, has gained increasing importance in recent years. Advertisers refer to efficiency increases – especially through the reduction of scatter losses – compared to traditional online advertising, for which advertising companies must pay a significant surcharge. In the context of an empirical study among almost 2.7 million internet users, it was examined to what extent behavioral targeting can meet the requirements for increased advertising efficiency. The comparison of three groups of internet users (traditional online advertising, classic targeting, behavioral targeting) shows that the key figures for analyzing advertising efficiency could be improved by using behavioral targeting. The behavioral targeting group has a significantly higher click-through rate, lead rate, and conversion rate; at the same time, the users of this group generated a higher turnover per purchase. Despite the higher costs associated with the use of behavioral targeting, the decisive key figures – cost-per-order and cost-per-lead – could also be improved. Overall, the study provides clear indications that the efficiency of the use of advertising media can be improved through behavioral targeting.
