Net Perceptions, Real Media Partnership Promises Better Ad Targeting
According to Andrew Simpson, Net Perceptions' ad targeting product manager, customers have seen an average improvement in clickthrough rates of 30 percent to 50 percent since applying the technology.
"This almost eliminates the need for testing," Simpson said. "While other services monitor a campaign, they don't necessarily take any action. Our service automates in real time where an ad is going to be successful, getting around the trial-and-error aspect of Internet marketing. So ultimately every ad impression will be a test event in itself -- was it successful or was it unsuccessful?"
The service analyzes patterns of Internet behavior based on the time of day a user surfs, the recency and frequency of their visits to a site, the types of keyword searches he or she makes and other navigational patterns. Then it comes up with a User Relevancy Score, which is the probability of a user clicking through an ad.
Through the agreement, Real Media, New York, supplies a list of advertisements for a one-time fee of $12,000. Net Perceptions, Eden Prairie, MN, selects the most appropriate ad for each user, charging $25,000 per year for sites serving up to 1 million ad impressions per month and up to $200,000 for 500 million impressions per month.
The Los Angeles Times, Playboy and Bloomberg are among the first sites that have signed up for the application, all of which are existing Real Media clients. Net Perceptions' customers include CDNow, Tower Records and SkyMall.