To ask which type of online ad targeting works best is akin to asking which type of food gives you the most energy. Studies prove the superior effectiveness of all the variations on online ad targeting and, in truth, in many cases they work best in combination with each other. Among Internet ad targeting advocates, the key battle lines are drawn between supporters of behavioral and contextual methods. A point of consensus among online marketers is that classic demographic targeting alone is often no longer highly effective. As Dave Morgan, CEO of behavioral targeting company Tacoda, told eMarketer, "Demographic targeting is losing power because consuming patterns are no longer as relevant." Behavioral targeting is set for robust growth over the next few years. EMarketer expects that U.S. online advertisers will spend over $2 billion on behavior targeted online advertising in 2008, up from $1.2 billion this year.
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