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Wednesday, June 06, 2007

Joost Realizes Targeting Potential

Leave it to the Skype/Kazaa guys to push online advertising to where it should have been years ago. The Joost founders are introducing ad models and are betting their future on delivering highly targeted video ads to the consumers who watch its online channels.

Per MediaPost:

"Joost can tailor its ads to individual users based on information they provide--including geography, tastes, and demographic information--along with behavioral patterns."

Display advertisers have only recently implemented ad networks that combine demographic and behavioral data, and Joost's ability to shift big media companies and advertisers will pave the way for TV to adopt the model.

Joost will know who's watching (since unlike TV, PCs tend to be used by one or two people at the most, and registration is required), and delivering ads based on an anonymous profile is clearly the future of online advertising. Cable TV providers similarly know the demographic data of the household, and theoretically track the behaviors based on which program is being watched.

What percentage of the ads that you see online or on TV actually match your demographic profile? 5 percent? 1 percent? I don't know about you but I'm tired of ads for online dating, feminine protection or pickup trucks -- products that I will never ever buy. No wonder fast forward is the most used feature of the DVR. This poor matching is great for the revenue stream of networks, but horrible for consumers and advertisers. If Joost succeeds, business as usual will no longer be acceptable.

Joost's other innovations include in-stream ads instead of pre-rolls, and interactive ads that are voluntarily activated by users so as not to disturb the video. The shift to targeting and behavioral marketing is clearly on as the technology for tracking is available.

By John Gartner at 09:08 AM | Comments (0)

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