Profile Advertising writes about Tacoda, which “Advertisers will be able to pay to reach a certain demographic of people (for example, high-income men aged 30 to 40 who have expressed an interest in buying a sports car) through sponsored text links that appear on Tacoda partner Web sites.”

Tacoda’s new service will be a hybrid of Google’s service and profile-based advertising–two of the hottest sectors in online advertising today.

The service draws on pay-for-performance search deals–popularized by Google and Overture–in which marketers bid to show up in query results based on specific keywords. Advertisers pay only when visitors click on their sponsored text listings that appear on search results pages. But instead of using search keywords to determine when to place ads, Audience Match draws on profiles of Web surfers. The profiles, culled from online publishers, are then used to tailor ads to visitors’ behaviors and demographics, or what’s called behavioral targeting.

Advertisers will be able to bid online to reach specific demographics of people. And their ads will appear in text listings on publishing partner sites.

To do this, Tacoda will build on its first product, Audience Management System, whose customers include Conde Nast owner Advance Publications,, iVillage and others.

That product is designed to give Web publishers more insight into their visitors so that they can better target their ads. At its full potential, it can create profiles that include a person’s age, gender, location, billing address, e-mail address, Web surfing habits and subscription information to offline publications. To do this, it draws from data-mining technology, tracking software such as cookies and Web site registration information.

Tacoda is not the only company jockeying for attention in the market. Companies including Revenue Science, 24/7 Media, and aQuantive are all selling similar behaviorally targeted advertising, and much of it is catching on with companies.

An earlier post by John Battelle on Tacoda.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.