Online Customized Ads Move a Step Closer

Yahoo will announce new tools for online advertising today that could pull the company ahead in the race for what is called "behavioral targeting," that is, the ability to better tailor online advertisements to the people most likely to buy.

The product, Yahoo SmartAds, would help marketers create custom advertisements on the fly, using information on individual buyers and information on real prices and availability from the vendors. For example, a person who had recently searched for information about blenders might see an ad from Target that gives the prices for the blenders that are on the shelves in the store closest to that person's home.

The Internet has long promised this kind of one-to-one marketing, but it has often been difficult for advertisers to customize display advertisements with a broad reach.

View: NY Times

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How is it going to figure out shops closest to your home? Only way I know is by IP, but then wouldn't it be shops closest to your ISP?

actually you can only indetentify the ISP and country you use/are in by a simple IP check.
it prolly aims at online shops and general product advertising, similar to TV ads

Glassed Silver:mac

I like the idea but I know that many people block ads altogether, and that number (should) only be increasing.