Banner Ads - Targeting And Tracking

Banner ads have the potential to offer unlimited targeting, tracking, and measurability. Tracking and measuring the performance of banner ads allow advertisers to analyze and select the best performing ads for each placement. This makes it possible to replace poorly performing ads quickly and efficiently. Targeted banner advertising means serving the appropriate ad to a specific type of user based on a user profile. Targeting is typically based on past behavior, whereby banner ads are served onscreen based on the view-er's previous actions. This may involve knowing what Web pages the viewer has visited recently, as well as whether or not they made a purchase, signed a registration form, or took other similar actions. Tracking such behavior is somewhat controversial and opposed by privacy advocates. Some marketers defend such practices, arguing the information is used in aggregate form only and not revealed on an individual basis.

While banner ads may be targeted based on an overall profile of a Web site's typical visitors, more effective targeting relies on creating a user profile. Using software technology such as the Dynamic Advertising Reporting and Tracking (DART) program, introduced by Internet advertising agency DoubleClick Inc. in 1996, it is possible to quickly determine which banner ad to present to the current user. DART and other proprietary systems used by advertising networks match ads to target audiences through the use of the controversial "cookie" technology.

Cookies obtain information about a user's hardware and software, as well as their Internet connections and are used to create a user profile without obtaining the user's permission. This raises concerns among privacy advocates that the technology will be used to obtain confidential information against the wishes of individual users. Another profiling issue involves combining online and offline information to create even more comprehensive user profiles that might include individual names, addresses, and telephone numbers. Again, marketers attempt to address these concerns by not releasing information on individuals and only using the data in aggregate form. As the technology for creating user profiles improves, it is expected that banner ads will realize their full targeting potential and their performance will improve.