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NMA, 9th June 2005

Advertising.com joins race for behavioural targeting solution.

AOL subsidiary Advertising.com has joined ad serving companies jockeying for position in the emerging market for behavioural targeting solutions, with the UK launch of its LeadBack technology.

Behavioural advertising can be used for a variety of online marketing objectives, such as lead generation or customer acquisition campaigns. Advertising.com claims LeadBack has the ability to follow visitors as they leave a site and serve them with appropriate advertising on its own network, with out the need for further media buys. According to comScore Advertsing.com UK reaches over 79% of the UK online population.

LeadBack works by using cookies to give web site visitors anonymous status tags based on site activity, such as those who visited but didn't register. Users are then anonymously identified when they visit other sites within Advertising.com's network and severed with ads designed to drive them back to the original site.

Mike Peralta, MD of Advertising.com UK , said, "We can show ads to users who are interested in a particular product or service, and as such they're more like to respond." Several ad serving companies including 24/7 Real Media and Accipter, have already begun testing behavioural solutions with UK customers (NMA 03.03.05). But Peralta claimed that only LeadBack can save the effort of having to arrange media buys, "It takes a lot of effort to get 79% reach," he said. "We have both the technology and the reach."

Spend on behavioural targeting in the US has more than trebled since 2003 and is currently nearing $1bn (£547m), with the UK market set to follow. Advertising.com US reports that in the first quarter of 2005 its revenues from behavioural marketing solutions were up 80% on the previous quarter.

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