Doh! Relevant Ads Work

This story from Fortune looks at the emergence of "relevant" ad marketing as a successful business model. The notion that ads work best when tied to user interests is nothing new. But the story includes some interesting data that validate the economics of this approach. A telling stat is the fact that the average price paid for a successful click-through on Overture's keywork auction market rose from 22 cents last year to 35 cents this year. As advertisers see growing value in well-executed Web advertising, it becomes easier for niche Web sites to succeed.