This is the summary of an article by Amanda Green. It discusses behavioral tracking as a better way of segmenting consumers with deeper granularity and unmatched precision. Here’s a link to the original behavioral targeting article: Behavioral Tracking: Knowing Customers on a Deeper Level.
This is the summary of an article by Jyanping Rung, Benjamin Woll, and Carl Estrom. You can get the pdf of the behavioral targeting article here: Trying to Bring the Numbers Alive.
The approach is becoming more and more personal when it comes to marketing these days. The personal information gathered from sites are valuable asset to a company so that it can conduct effective advertisements. People leave information as accurate as log-in time, frequency, e-mail address, purchases made, telephone number and complete address. The question is, “how can this information be useful tools for future marketing”?
The need for revolutionized marketing is conspicuous as millions and millions of dollars are used every year for promotion, and better ROI (Return of Investment) is needed to compensate for the efforts. The use of individualized marketing makes sense as the behavior of the individual is taken into account in advertisement which will likely be converted into sales.
Let’s be realistic; spending money for advertisements that are aimed for “everyone” will account only for meager returns and compromise a lot investments. Therefore, it is not a good business decision. Timing is always important for any advertisement. The ultimate goal is to present the products to people when they need them and where they need them. There can be no other better way than knowing the individual’s needs through behavioral targeting.
Using this technique for marketing can help your business grow. For example, you are selling men’s basketball shoes. With the information you have, you can select who to send advertisements to base on their age, sex and purchases. People who also purchase basketball jerseys are likely to buy basketball shoes as well. Furthermore, you can specify the color and design of the products you advertise, and this will marvel your customers because your products are very accurate to their preferences.
To become useful information, the gathered data should be used the right way and used for delightful advertisements that will tickle the interest of the individual. The use of the information gathered is crucial in building a market for it and maintaining the old user while gaining others by minimized effort. The use of the information for correct marketing purpose can be translated to end user sales.
However, there are instances when behavioral strategy is not applicable. For example, if you happen to be selling Ferrari cars in your website, it does not necessarily mean that when someone enters your site, he or she will readily buy a car or has plans of buying it.
Another downside to behavioral marketing is that there are people who may become a user but requires advertisements for the product to come in their conception, thus prevents the broadening of user horizon. The opposition of people due privacy is also one thing that keeps behavioral marketing at the gates; true, information are being gathered for the purpose of marketing, but being cynical and all kills the spirit of it.
The demand for effective marketing strategy is now a battle down to every single user and behavioral strategy may answer the call.
This is the summary of the article by Koen De Bock and Dirk Van den Poel, which presents a model for analyzing demographic information and click stream data to create web user demographic profiles. You can get the PDF of the behavioral targeting article here: Predicting web site audience demographics..