Behavior-targeting of Display Ads

This past week, Google announced the quarterly report. Display Ads and Mobile become a significant part of Google revenue source. For Display Ads, Google revenue is $2.5 Billion in the next 4 quarters. Excluding fee paid to partners, it is estimated that Google will earn $2 Billion in the next 4 quarters.

Display Ads was actually born earlier than Search Ads. But Search Ads is much more effective than Display Ads because it captures user intent. That's why Google Search Ads is so successful.

In the past few years, however, display Ads is catching up because behavior-targeting technology. Among behavior-targeting technologies, data is the core part. With user intent data, display ads can be much more effective.

According to a report, Rocket Fuel can lower their eCPA as large as 64%.

Here is the breakdown for different verticals:

• Automotive: 64% lower effective cost per action (eCPA)
• Retail: 24% lower eCPA
• Travel: 37% lower eCPA
• CPG: 50% lower eCPA

I believe that display advertising has a bright near-future as long as it deals with privacy issue well.