So Google has finally jumped on the BT bandwagon. Last Wednesday, Google began showing behaviorally targeted ads, and frankly, it’s something I (and many others) have anticipated for a while. With all of the non-contextual inventory they have now (YouTube, etc.), it is essential to have BT functionality. Empowering BT across all parties is an important factor in the advancement of the practice, and Google’s announcement further validates a long held position that display advertising will be dominated by BT.
The current U.S. non-search online ad space is a $10 billion market. This is a huge opportunity that AudienceScience has been addressing, and there is plenty of room for Google and others. Yahoo has been selling BT for a couple years now and, in fact, has generated hundreds of millions of dollars in revenue with this offering. They are the largest display advertising salesforce in the world, and their efforts have done nothing but validate and accelerate the acceptance of BT as a mandatory part of online advertising.
An added benefit - Google has taken a forefront role in advancing consumer privacy standards which will help considerably with some of the high level conversations taking place within our government. We like their video explaining “intent based” targeting to consumers and appreciate the education aspect of it. http://www.youtube-nocookie.com/v/aUkm_gKgdQc&hl=en&fs=1&rel=0
This is a new model for them and they will face yet unknown challenges in the non-search space, where they have to buy inventory at high eCPMs and marketer buying is not an automated process. This is consistent with the problems that they have had with getting into other advertising mediums. Google has interestingly also put themselves in more direct competition with the largest agencies in the world in terms of building data assets.
Google has put their weight behind the practice, their rising tide lifting all ships. It is an exciting time for behavioral targeting given an industry shifting to maximizing efficiency and performance.
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