With its ability to target consumers based on their actual shopping preferences, behavioral advertising has become a very popular tool among marketers and retailers. And the behavioral targeting trend shows no signs of slowing down, being applied not only to traditional online marketing campaigns but to mobile marketing as well. That’s because behavioral marketing has proven to be more effective than non-targeted advertising, converting consumers into buyers at more than two times the rate. It’s also more profitable, generating 2.68 times the revenue per ad than non-targeted advertising, according to the Network Advertising Initiative.
How behavioral targeting works
Behavioral targeting uses the cookies from a person’s browser to show that person ads for things they have a proven interest in. So, for example, let’s say you have a client who sells consumer electronics (digital cameras, camcorders, printers, etc.). Using behavioral targeting (and an ad network; see below), you can find consumers who recently performed a search for “digital cameras,” and show them ads for digital cameras just about wherever they go online that features ads.
Similarly, if the person just purchased a digital camera, you can use behavioral targeting to show them online ads for, say, photo printers or photo editing software.
As a marketer, that kind of targeted approach to advertising is incredibly powerful as you can now target campaigns based on consumers’ actual buying and browsing behavior instead of having to guess – and achieve better results (more clicks, higher conversion rates).
As an educated consumer, I realize that online ads are not going away any time soon — and if I’m going to be served ads on all my digital devices (I have too many) why not make them relevant to me? But I also realize this comes with a price. Ads can quickly become irrelevant to me, and marketers may misinterpret my online behavior or invade my privacy.
Privacy advocate groups have the similar concerns. In fact, Google and Mozilla are now introducing Do Not Track features to their browsers (due in part to pressure from the FTC). There is also talk of an opt-out registry, which could be similar to a telemarketers “Do Not Call” list. However, it will probably be a while before advertisers and ad networks adopt such a system.
Targeted mobile marketing
As stated above, one of the hottest areas where behavioral targeting can make a big difference is marketing to a mobile audience.
Mobile devices (namely smart phones) are increasingly becoming a part of the shopping process, as well as a way for brands to really connect with their target audience. More and more, shoppers are using their smart phones for comparison pricing, looking for coupons and discounts, and sharing information about products and services on review and social media sites.
Using mobile behavioral targeting (aka mobile and location marketing) you can now target customers when they check in at locations (using Foursquare, for example) or scan products, pointing them to products or promotions they might not have otherwise been aware of.
Advertising networks and behavioral targeting
To implement your behavioral advertising campaign, you are going to need to partner with an advertising (or ad) network that understands and tracks consumer behavior. Similar to media buyers, ad networks allow you to run targeted ads across hundreds, even thousands, of websites, rather than just on specific sites.
However, all ad networks are not the same. So make sure the ad network you work with understands your target audience (and defines it in the same way you do) and can and will place your ads on sites your target audience is likely to visit.
How behavioral targeting benefits your clients
Not only is behavioral advertising more targeted than traditional advertising, it also tends to be less expensive. So clients don’t need a big budget in order to cast a wide net to catch their target audience. Additionally, the returns are higher, because behaviorally targeted marketing campaigns and ads are reaching the right people at the right moment.
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