NEWS: Behavioral Targeting: Big Noise, Tiny Business

Behavioral Targeting: Big Noise, Tiny Business

from Silicon Alley Insider by Michael Learmonth

Is there any way to escape the scourge that is behavioral targeting -- publishers that watch what Web visitors are doing, and pitch them ads based on what they do online?

Sure there is. Just go about your business -- there's just not that much of the stuff on the Web today. Despite attention from Congress and the press, two privacy bills in the New York state legislature and flurry of lobbying activity, this is a tiny market. EMarketer estimates that a mere $775 million will be spent on behavioral ads this year -- about 3% of the $26 or so billion that will be spent on online advertising in 2008.

The promise of behavioral targeting of advertising, we're told, is huge. So why aren't more dollars being spent? Part of it is bad technology, but the more significant issue is squeamishness on the part of brand advertisers. Charter's deal with data firm NebuAd is red meat to the privacy advocates and subject of a Senate hearing next week.

Ed: We agree.

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