DirectCPV Cost Per View Advertising Blog

Which is Better: Contextual Targeting OR Behavioural Targeting for Internet Advertising?

written by on Tuesday, February 9th, 2010 at 12:50 pm

Members of the online advertising industry are constantly growing, learning and changing their methods in order to keep up with the transformations that are always occurring in technology. In the cost per view (CPV) or pay per view (PPV) advertising industry, there is a continuous debate over the difference and success rate of contextual targeting and behavioural targeting for internet advertising. So which is better in the battle for targeting glory?

First things first, contextual advertising is a form of highly targeted advertising that serves relevant ads that appear on websites or other forms of media. The advertisements are selected based on the content that is being displayed to the user in real-time technology.

In most cases, contextual targeting operates by scanning the entire text or content of a website for specific keywords to provide the best fitting advertisement. If a user is viewing a webpage that focuses on weight loss or body building, an advertisement for a related company, such as Acai berry diet pill, will appear. Contextual targeting is also widely used by search engines to serve advertisements that are based on the keywords typed into the search box.

On the other hand, behavioural targeting for internet advertising focuses on the user’s online tendencies to increase the effectiveness of ad campaigns. This type of targeting involves collecting a user’s web-browsing patterns, searching history and behaviour. Many advertisers believe that this allows for the deliverance of the most relevant advertisements possible.

Which type of targeting is better? Is there a higher CTR rate for contextual targeting or behavioural targeting for cost per view (CPV) or pay per view (PPV) internet advertising? While there is still no definite answer, a study was recently conducted by Synovate for Vendare which asked adult consumers what type of targeted online advertisement they were more likely to click on. The results revealed that 62% were more likely to respond to contextual ads, 28% liked demographically targeted ads, 24% responded to geographical targeting and only 18% said they were likely to click on ads served based on behavioural targeting.

Contextual targeting is also a great option for cost per view (CPV) advertisers because it greatly increases the chance to communicate with users by enabling them to send different offers to the same user at different times. There are only a limited number of users, but an infinite number of user interests. The usual internet web surfer can look through more than 10 to 15 different types of website content throughout the day.

Don’t start eliminating behavioural targeting from your cost per view (CPV) or pay per view (PPV) ad campaign just yet though. A mixture of targeting practices that includes demographic, geographic and behavioural targeting is still one of the smartest strategies for online advertising.
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1 Comment

  • Student #1 says:

    Thank you for publishing this it was essential for a paper I am at this time writing for my finals. Thanks