More Targeted Ad Dollars Less Profitable

©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.

1/12/10, MediaPost

According to a new study from the MIT Sloan School of Management, Online advertising can be much better at targeting certain demographics than its traditional media counterparts, but as more competition enters the space, these advantages do not automatically translate into greater profits. Sloan Assistant Professor Alessandro Bonatti writes that the same search and other technology that has enabled advertisers to target particular audiences, such as men between 25 and 35 years old who work on Macintosh computers, is also creating greater on-line competition for the same audience, thus reducing the profitability of advertising on any targeted web site.

Read more

Want to partner with IDG?

Click here to get started