Wednesday, July 29, 2009

Behavioural Targeting & Retargeting are becoming another tool for clients to drive lead generation, but what about premium pricing?

The obvious trend during a recession is to become even more targeted with media spend and as we know the trend within online display is even more amplified in this way.

BT and Retargeting, otherwise known as "lower funnel media" are key tools for clients to target in-market consumers. As the technology in this area becomes even more sophisticated, the AU online industry will soon see this level of targeting become the norm.

The challenge for Publishers who offer BT/Retargeting as we see it currently is the pricing model, as media agencies planning for direct response clients will always want to crunch on CPM price to drive lowest cost per conversion, yet the technology is proprietary to the Publisher in most cases and doesn't come without significant investment & infrastructure/back-end support.

It will be interesting to see if Publishers can maintain charging a premium for BT/Retargeting CPM's in a market that has been flooded with 'low cost & untargeted' CPM package deals of late and for technology that will soon become 'the norm', as more advanced technologies are developed. Watch this space!

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