Boom forecast for content-targeted sponsored links
16 February 2005
Content-targeted sponsored links such as Google AdSense, Kanoodle BrightAds, Marketplace, Quigo, and Overture Content Match will become the fastest growing interactive marketing tool over the next 12 months, a new survey predicts.
The first Kanoodle Content Targeting Survey found that an additional 20 per cent of advertisers surveyed would be incorporating content-targeted sponsored links into their overall marketing programs over the year.
More advertisers are also planning to use other interactive marketing tools, including an additional 14 per cent planning to use display ads, email marketing (12 per cent) and sponsored links on search results pages (15 per cent).
Of the nearly 70 per cent of advertisers surveyed that used sponsored links in 2004, more than 26 per cent spent $100,000 or more on their campaigns and this spending is expected to increase by close to 10 per cent over the next twelve months, compared with forecast growth for the overall advertising industry of six per cent.
When asked about the added benefits that content-targeted sponsored links provide, 40 per cent of advertisers surveyed reported that content targeting increased their overall sales and revenue, while 46 per cent of respondents said they used content-targeted sponsored links as a vehicle for increased brand exposure.
Looking to the future, Kanoodle found that 63 per cent of advertisers surveyed would like the ability to target sponsored links based on user behaviour, and 49 per cent would like the ability to target based on geographic location.
"This research confirms that advertisers see sponsored links on content pages as a big opportunity to drive sales and build brand equity," said Lance Podell, chief executive officer of Kanoodle. "It's exciting to see that advertisers recognize the different methods for content targeting and the overall opportunity to build their business."
The survey, produced in partnership with JupiterResearch, is the first-ever study of advertiser trends in content-targeted sponsored links.
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