On the internet user behaviour matters more than content.
PERHAPS THE MOST EXCITING feature of the Indian online advertising market is not so much the advertising itself but the impressive buzzwords that keep floating in.
The latest mantra doing the rounds globally—Yahoo, MSN and Google are said to be testing this new format —is behavioural advertising which is being touted as the next big
thing since contextual advertising.
Also dubbed as behavioural targeting, this trend refers to an individual’s surfing behaviour, and is a bit different from the more common targeting method of displaying ads matched to the specific content of an individual page or to all users.
Says Rajneesh, Head of Digital Marketing (Revenue & Strategic Business), MSN India: “With behavioural advertising, the per user yield goes up by two to three times. It enables marketers to deliver ads to consumers based on their online behaviour—what they recently bought, where they surfed, or what they searched for. Based on this information, ads can be tailored to drive users back to the advertiser’s site to complete the desired registration, purchase, or other action.”
Adds George Zacharias, Managing Director, Yahoo India: “Two things increase the effectiveness of advertising in the online medium. One, the right ad product should creative rich media forms of advertising and has further potential to grow.”
Adds Rajneesh, “Behavioural targeting cannot be done in a portal scenario like email portals and messenger. Secondly there has to be enough internet penetration. Online advertising market is directly related with Internet penetration in any country.
So it will take some time. We at MSN are constantly evaluating these new formats and opportunities.”
Sources indicate that MSN in India is trying to test behavioural targeting on live.co.in (Windows’ live search beta). While Yahoo has rolled out behaviour targeting across the world, in India, Zacharias says that it will take time before it starts off in India as the media itself needs to grow. According to a study by Internet and Mobile Association of India (IAMAI), in India internet penetration is less than 2 per cent of the total population and the online advertising market is only 0.5 per cent of the total ad spend. The good news of course is the potential that hides behind those numbers.
(Published in Business Today in January 2007)