Kanoodle Inc., a provider of sponsored links for SERPs and content pages has announced a partnership with 24/7 Real Media to provide behaviorally targeted sponsored links. The partnership will make use of Kanoodle’s BehaviorTarget network and is expected to launch by the end of the 2nd quarter, 2004.
Kanoodle’s BehaviorTarget will integrate 24/7 Real Media’s proprietary Insight XE Web analytics technology to analyze and track user behavior anonymously throughout Kanoodle’s BehaviorTarget network of publishers. Essentially, Kanoodle will help build and perpetuate a network in which to serve 24/7’s behaviorally targeted sponsored links.
This partnership comes as the performance of search engine advertising continues to boom. Numerous reports have been issued claiming the virtues of search engine advertising, with keywords garnering 35% of the $7.3 billion worth of ad revenue generated. With these figures, a number of companies are trying to capitalize on the search engine advertising industry.
Kanoodle, which offers a search engine as well as search advertising services, offers contextual-based, PPC listings on SERPs. Their clients include CBS MarketWatch.com, MSNBC.com, CNET’s Search.com, and the InfoSpace search properties. It also provides PPC listings on its own search engine results.
24/7 Media’s agreement will see the company using its behaviorally targeting technology to integrate in Kanoodle’s BehaviorTarget network service. The result the partners are aiming for is behaviorally targeted paid listings and ads. Potential customers will bid on content (keywords, listings) to be used in their ad campaigns. Bidding will be in the area of $100-300, topping out at $5000 for the content with the highest demand.
“BehaviorTarget is the next innovation in sponsored links since contextual targeting, and a real win for advertisers and publishers,” said Lance Podell, president of Kanoodle. “24/7 Real Media’s superior technology combined with their innovative behavioral targeted network offering model makes them the ideal partner for BehaviorTarget. Kanoodle now offers advertisers the most targeting choices for their sponsored links campaigns.”
This agreement will give Kanoodle access to 24/7 Web Alliance’s network, which contains more than 700 sought-after Web sites. This will supply Kanoodle’s BehaviorTarget service with an already established audience.
One area of possible concern for Kanoodle and 24/7 is the probable outcry from privacy advocates because of the adware implications. MedialPost.com offers this explanation of adware and its uses:
“For advertisers, adware simply refers to placing advertisements in software. For consumers, adware is software that tracks their behavior online, which is different from personal data. Adware tracks consumer behavior to serve pop-up ads and other promotional messages in exchange for offering users free software downloads.”
In other words, to behaviorally target advertising, companies must track user habits when surfing. These habits consist of sites visited, especially consumers sites. The companies responsible for the adware then serve pop-up based on the habits exhibited by the user who was being monitored. “Because adware is essentially software that tracks everything individuals do online, adware can serve both contextual and beviorally (sic) relevant messages to users wherever they are on the ‘Net.”
Kanoodle and 24/7 have stated they do not intend to capture personally identifiable information. They are merely after surfing habits in order to target search engine ads, although, with 24/7, there are other differences between their Insight XE Web analytics technology and regular adware/spyware.
Instead of installing an application on your computer, 24/7’s technology helps organizations measure, analyze and understand the behavior of visitors to their Web sites. Simply speaking, when you visit a site that is a client of 24/7’s, the site analyzes your surfing habits and serves adds accordingly.
It is conceivable that Kanoodle will be employing 24/7’s technology in the same method. When users search using Kanoodle, or visit a site that features the partnered service, visitors will be served behaviorally targeted links, placements and ads.
The question is, are either company concerned with what the privacy advocates will think of this service?
Chris Richardson is a search engine writer and editor for Murdok. Visit Murdok for the latest search news.
