Audience Buying: Breathing Life Back Into Display Advertising.
Wednesday, March 10th, 2010By Adam Carroll, Senior Marketing Strategist
It was not long ago that display advertising, in the form of banner ads, was becoming the dinosaur of online marketing. Declining click through rates and poor brand engagement meant that marketers were allocating their budget to more effective online channels. However, in the last couple of years key developments in targeting technology and media buying platforms have significantly boosted the effectiveness of display advertising.
At the forefront of these advancements is the concept of ‘Audience Centric Buying’. To understand why this new approach is such an important development in online advertising it is important to understand the existing model for buying ad units online:
Typically the editorial environment was considered to be a critical piece of ad placement and targeting, so advertisers would attempt to reach their target audience by purchasing placements on contextually relevant sites. For example- a car tire manufacturer would place ads on automobile sites, hoping to find customers looking to purchase car tires. While this form of targeting certainly goes some of the way to reaching a responsive audience, it does not take into account the behavioral, demographic and financial characteristics of individuals that will influence the likelihood of them making a desired action. Furthermore, a targeting strategy focused on contextually relevant placements means that you are often vying for limited ad units with your competitors, forcing up media costs and cluttering the space with similar ads.
Wouldn’t it be great if there was a way to identify browsers who we know are most likely to respond to a particular message and serve them an ad across any site, rather than simply casting a wide net by placing ads on what are believed to be relevant sites? ‘Audience centric’ targeting makes this concept a reality, providing a more scientific approach that ensures ads reach the most engaged and relevant audience.
So how does it work?
‘Audience targeting’ works by analyzing customers who have already completed a desired action on an advertisers site (such as making a purchase) and using this to identify and target other browsers with similar characteristics across virtually any site or network. Ultimately, this means you are buying and targeting a qualified audience, as opposed to simply buying pre-fixed ad placements across set sites.
Let’s take a slightly closer look at this process:
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| From Drop Box |
- Cookie based technology collects data on customers who have been to an advertiser’s site and/or completed a desired action eg: purchased goods; requested further information etc.
- This data is used to build a profile of a browser most likely to complete a desired action. This profile includes multiple layers of behavioral, financial and demographic characteristics (eg: browsing history, age, gender, income etc)
- Through ‘ad exchange’ buying platforms, advertisers are able to match the data they have collected with that of 3rd party providers and effectively bid for individual ad units (impressions) across the web that are served to browsers whose cookie information is aligned with that of the ‘ideal’ customer profile.
- A display ad is served, with copy and message that is targeted specifically for that browser, significantly increasing the likelihood of a desired outcome.
Essentially this process ensures that only the customers who are most likely to respond are served an ad no matter which sites they are browsing on.
Apart from the obvious advantages of reaching a more relevant audience, this form of targeting provides further benefits. Firstly, the advertiser knows the exact characteristics of their target audience and the online behavior they are able to segment this audience and deliver a more timely, customized message in the ad creative this compounds the level of engagement and value from the advertising spend. Additionally, being able to target an engaged audience in a non-contextual environment can help ads to stand out as they do not get lost in the clutter and ultra-competitive space of contextually aligned sites.
For advertisers this new technology really is a big step forward. Rather than simply landing on the target, advertisers can now have the data required to hit the bull’s-eye.
Whether the campaign objective is getting a direct response (lead, sale etc) or brand awareness the result is going to be a more responsive and engaged audience and less wastage on poorly targeted ad placements. I believe this is going to see display advertising once again become a vital component of the online marketing mix.
It is no secret in the industry that this is going to be a key trend in online advertising in 2010 but the biggest opportunity will be in the first half of the year where advertisers who adopt audience centric targeting will reap the full benefits of reach and cost advantages whilst the rest of the online advertising world catches up.
















