In this interview-based behavioral targeting study, Blase Ur, et. al, was able to obtain more detailed information about user perceptions of online behavioral advertising, and suggests improvements on notice and choice. You can get the pdf of the original behavioral targeting article here: Users Perceive Online Behavioral Advertising as Smart, Useful, Scary and Creepy.
This article is a summary of an eBook written by Rob Graham called Fishing From a Barrel: Using Behavioral Targeting to Reach the Right People With the Right Ads At the Right Time. You can get the pdf of the free behavioral targeting e-book here: The Essence of Behavioral Targeting.
As this is a very broad e-book, composed of nine chapters that comprehensively explain the value of behavioral targeting and how it works, this article will focus on certain aspects of the book.
A World of Individuals
Behavioral targeting is all about targeting me, and not targeting us. We need to embrace a new marketing paradigm shift which incorporates the fact taht we are unique individuals with unique needs, and stop advertisers from pretending that they need to create ads that reach out to as many people as possible, and make that their primary goal.
Even as consumers share the same interests, that doesn’t mean that they are the same. In fact, each customer is still unique and has many other interests. The key to behavioral targeting is having a good understanding to unlock the essence of a single individual and talk to that individual in his or her own language.
The Promise of Behavioral Targeting
The focus of this e-book is the effective use of behavioral targeting in its applications towards online advertising. This technique promises to make a win-win-win situation for the publishers, advertisers and consumers. Through cookies, a website will know so much about a consumer. For example, a site will know what the consumer is interested in, and know about what he expresses to be a more specific version of his interests. Through behavioral targeting, a website will recognize that a consumer is showing purchase intent, and even cost issues if the consumer shows attributes of delaying decision making.
With behavioral targeting, you tend to look at advertising the way we don’t normally look at it: as a noble event. A consumer will see relevant ads that caters to his desires and needs, presented opportunities to take advantage of offers that are agreeable and relevant to his current needs. An advertiser will know the specific interests of a user, with which banner ads were uncapable of doing. Publishers can make money by tracking a database of characteristics by visitors, creating profiles that they can sell to advertisers.
The Fine Art of Targeting
The old technique of advertising before the Internet was focused on quantity and quality, where consumers are presented with ads that sometimes interested us, but mostly didn’t. This old form of advertising has trained us that in the marketing process, our involvement wasn’t really necessary. But that can’t be further from the truth. Online has changed things dramatically. Online we can share our opinions, thoughts and questions. Advertisers no longer look at us as button clicking monkeys, rather as individual consumers wanting to engage in a dialogue with advertisers. Consumers as the questions and follow the path that interests us. It’s no longer a one size fits all thing.
An advertising message that has reached 1,000,000 of the wrong people is less effective than a message that has reached the right person. Advertisers should learn to listen to consumers, to remove irrelevancy in ads. They should understand that consumers like to be treated as individuals, and should try to listen to them. There is no single answer to how advertisers should talk to consumers to make them listen. One way to do that is watch the activity of consumers and get a sense of their needs and wants.
Striving for Effectiveness
To summarize, advertisers can take advantage of behavioral targeting by getting out of the frame of mind of a traditional advertiser and following these guidelines. First, it’s very pointless and ineffecient to reach everyone with the same advertising message. Second, reaching consumers with the wrong advertising message for far too many times will only irritate these consumers and not produce anything positive. Third, More than consumers need advertisers, it is advertisers that need consumers. Fourth, the window of opportunity for making good first impressions is very limited for advertisers.
Traditional Advertising, like direct marketing campaigns are such a waste, that they actually expect around 98 percent of consumers will reject or ignore the message they sent. Natural Resources and money are ewasted unnecessarily. A totally inefficient system.
With behavioral targeting, there is an ongoing relationship between targeted consumer and advertiser. If a targeted consumer sees an ad that he doesn’t like, the advertiser may send out a new ad with a stronger message and stronger offers, and then another offer, and if the consumer still doesn’t want anything to do with the ads, then the advertiser can take him out of the target list.
This is the summary of an article by Youjae Yi. You can get the pdf of the behavioral targeting article here: The Influence Of Contextual Priming on Advertising Effects.
Product advertisements may be evaluated differently by different users. For example, if one ad implies that a car is large, one person might think then that the car is comfortable, while another person sees that the car has low gas mileage. The former thinks the car is a benefit, while the latter obviously has a negative perception after seeing the ad. The question is, what determines how one interprets product information that could hae various meanings?
This is the summary of an article by Andrea Addis, Giuliano Armando, and Eloisa Vargiu. You can get the pdf of the behavioral targeting article here: Profiling Users to Perform Contextual Advertising
Most of the advertisements that we see online are called sponsored links, from sponsored search advertising and contextual advertising. These ads are small textual messages that are supported by all of the major search engines today. Sponsored search advertising are ads that are placed in search engine results page after a search query, while contextual advertising is putting web pages in the content of third party web pages. An ad network acts as intermediary by selecting advertisements to increase ad network and publisher revenue and improving the experience of online users.
Behavioral targeting is a strategy to effectively disseminate timely advertisements to the right person at the right time. This strategy has been put under fire because of concerns regarding privacy. The need for effective tools for marketing is as glaring as the need to survive in the world of business.
In 2007, it became clear that Google, Yahoo, and Microsoft prioritize advertising after they each purchased online advertising companies. The search engine is an advertising platform, generating traffic through the search function. This is the summary of an article by Theo Rhöle, which discusses the mediating role of search engines between user and advertiser. You can get the PDF of the behavioral targeting article here: Desperately seeking the consumer..
A kind of customer profiling in online firms is called behavioral targeting. This method uses 3rd party cookies to know the browsing behavior of users. This method is quite effective, but some concerned citizens are calling it an invasion of privacy. This concern is even more prevalent with the cooperation of Internet service providers (ISPs), who intercept web traffic without user consent. This is the summary of an article by Daniel Rice, which discusses a simple solution involving user compensation in light of privacy concerns over behavioral targeting. You can get the PDF of the behavioral targeting article here: Behavioral targeting and economic compensation
Advertising was once a simple method dominated by huge and established companies. Media-buying and advertising agencies create print or TV ads and negotiate for space or airtime in TV or publications. However, digital advertising has brought home a new arena for advertising which is a lot more complicated, with more players and firms involved. This is the summary of an article written by Emily Steel, which looks at the history of online advertising and its unique characteristics. You can get the PDF of the behavioral targeting article here: Advertising’s Brave New World
The internet has become a major avenue for advertising, toppling down other traditional media such as TV and newspapers. Newspaper ads, in particular, have shown significant drops in annual revenues over the years because of competition from internet advertising. According to many, the unique feature of the internet is its ability to give out information to a targeted audience. This is the summary of the paper by Dirk Bergemann and Alessandro Bonatti, and it is all about investigating the role of targeting in ad allocation across different media, and the equilibrium price for advertising. You can get the PDF of the behavioral targeting article here: Targeting in Ad Markets