This is the summary of an article by Jason Carmel and Juha Mertanen. You can get the pdf of the behavioral targeting article here: Better Together: Dynamic Content Creation and Behavioral Targeting.
Companies use online optimization to have a serious presence in the world wide web. In particular, behavioral targeting is used to give visitors of their site the right content at the right time, using browsing behavior, ethnographic or demographic information of users. The main challenging, however, is efficiently creating personalize content and keeping the costs low for better Return on Investment (ROI).
Companies can traditionally choose to just publish ads on fewer websites or make targeting a little bit more generic, but both cases limits personalization. One possible solution is Dynamic Content Management.
Dynamic Content Management
Dynamic Content Management technology will not limit targeting depth for multiple segments and breadth across the site. In theory, this technology will allow marketers to create thousands of content pieces which are highly personalized for miminum expenses.
For example, Dynamic content creation can add a targeting element to each of 40 devices in hours instead of manually creating them which would take weeks. That way, the return will be a much stronger justification for the expenses. In addition, Dynamic content management could help stores have a more targeted local presence. Apparently, that is the direction that many huge companies, such as Walmart, are heading from a global presence.
A Grain of Salt
Dynamic Content Creation is a very promising tool, but needs a lot of work ahead of it in the form of segment analysis and determining the right content pieces for the right audience. In addition, the complexity of targeting and the rules of business increases as personalization increases. Targeting is only effective when coupled with proper investment and effort.
In addition, most of the tools used for dynamic content management poses a limit to how creativity can change. As a consequence, targeting methods that require large amounts of changes or brand deviations can’t be done using this method.