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Business & MBA Internet & Culture Security & Privacy

Behavioral advertising efficiency

Researchers from U Minnesota, UC Irvine and CMU took a look into “behavioural based advertisement”, a segment that requires heavy tracking of users across websites through cookies. A report of their findings is here: Online Tracking and Publishers’ Revenues: An Empirical Analysis. Money quote:

Empirical analysis of behavioral advertising finds that surveillance makes ads only 4% more profitable for media companies

They found that despite the 40% “ad-tech” premium charged by behavioral ad companies, the ads only added about 4% the media companies that published them, meaning that behavioral advertising is a losing proposition.

Source: Boing Boing