This is the summary of an article by Amanda Meuwissen. It talks about behavioral targeting as the heart of marketing success. As the Harvard Business Review puts it, “..targeting individuals with perfectly customized offers at the right moment across the right channel is marketing’s holy grail.” Here’s the link to the original behavioral targeting article: Behavioral Targeting.
This is the summary of a behavioral targeting article from submitedge.com. It briefly describes behavioral targeting, what it is, how it is done, it’s uses and privacy implications. Here’s the link to the original behavioral targeting article: Making Use of Behavioral Targeting.
This is the summary of an article from goodadm.com. It talks about how Google Inc. views behavioral targeting with caution, introducing new means of developing new features instead of jumping into this popular bandwagon technique. Here’s the link to the original behavioral targeting article: Google Wary of Online Behavioral Targeting Ads.
This article is based on the behavioral targeting news article by Katy Bachman. It talks about how politicians have embraced the use of behavioral targeting to individually interact with potential voters. Here’s the link to the original behavioral targeting article: Pols Ramp Up Online Behavioral Targeted Ads for 2012 Few worries about privacy and data collection issues.
Using Behavioral Targeting for Political Campaigns
Regulators and lawmakers in Washington are busy thinking about policies related to targeted advertising and privacy. However, they are using online behavioral targeted advertising for their own political campaigns.
They understand the value of individually targeting voters in the web. The web is a place where politicians can communicate with prospect voters regarding specific issues. It is also an avenue for raising funds. Thus, it is very hard for politicians to resist the benefits of this technology, especially since many anticipate this upcoming election to be a very close one.
According to John Phillips, chief executive of Aristotle, “online, real-time targeting is a very big deal in this election.” A couple of advertising firms serve advocacy groups and political campaigns include Mixpo and CampaignGrid. These firms are developing cross-platform video capacities for politicians who are putting in a significant amount of dollars to digital media. There are studies showing that already a significant percentage of voters don’t watch live TV, where most of the persuasion ad money of campaigns go.
“Data is the Bedrock”
Sean Spicer, who works for the Republican National Committee as communications director, adds that “data is the bedrock. There is a constant struggle to get the right message out.” As such, panelists are looking for more ways to manipulate more offline and online data, in an attempt to raise donations and heighten engagement among politicians and voters.
Phillips said that “when a consumer goes online, if the cookies line up, you can hit the user with a targeted ad.” The beginning of a campaign is in public lists such as voter registration lists.
Because online ads are highly targeted, a lot of campaign strategists have begin to wonder if television ads, which are often very expensive, are cost-effective. That said, it is expected that 65 percent of all advertisement spending for political purposes will go to these traditional ads.
On a related note, it has been recently revealed that Microsoft and Yahoo are selling personal user data to political campaigns so that pols can target specific voting audiences. It isn’t a coincidence that many campaigns have now become demographic-specific, and third party researches have contributed to data as well to create user profiles detailing retail purchases and income, among others.
Using the Internet to Advance Political Campaigns for Free
Campaign managers are now looking for creative ways to use online advertising avenues, such as YouTube, which allows them to quickly produce air time without having to pay for it. Spicer said that “for literally no dollars, we can make a YouTube ad. You can track it, push it off to [Politico’s] Morning Score and sometimes the cable networks pick it up. That aspect of digital has changed the concept of what you do from an ad basis.”
Online ad spending for the Presidential election is seven times greater than back in 2008. Viewing video habits have changed in particular, and through YouTube, which Google has aptly integrated with its AdWords online ad system, pols can engage voters who view videos online.
Protection of Political Speech
As chacha.com aptly defines, political speech is “a speech that most politicians use to win votes or talk about change.” While the commercial online ad industry is concerned with data use and user privacy, the politicians aren’t concerned about the policies that may emerge regarding the matter. According to Nathan Daschle, Ruck.us CEO, “I don’t know where the line is. People aren’t upset about the publicly available information. What might be uncomfortable are the conclusions we draw about online activities. If that becomes publicly known to other people, then it crosses the line.”
Phillips adds: “Do I lose sleep about whether or not there will be restrictions? No. Political speech is protected.”
Behavioral targeting uses information collected on an individual’s web-browsing behavior, such as the pages they have visited or the searches they have made, to select which advertisements to display to that individual. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be influenced by them. Behavioral targeting or behavioral targeting is a technique used by online publishers and advertisers to increase the effectiveness of their campaigns.
Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography, demographics or the surrounding content. Behavioral Targeting allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page. On the theory that properly targeted ads will fetch more consumer interest, the seller may ask for a premium for these over random advertising or ads based on the context of a site.
Onsite Behavioral targeting
Behavioral targeting techniques may also be applied to any online property on the premise that it either improves the visitor experience or it benefits the online property, typically through increased conversion rates or increased spending levels. The early adopters of this technology/philosophy are primarily within a retail or other e-commerce website as a technique for increasing the relevance of product offers and promotions on a visitor by visitor basis. More recently, companies outside this traditional e-commerce marketplace have started to experiment with these emerging technologies.
The typical approach to this starts by using web analytics to break-down the visitor mass into a number of discrete channels. Each channel is then analysed and a virtual profile is created to deal with each channel. These profiles can be based around Personas that gives the website operators a starting point in terms of deciding what content, navigation and layout to show to each of the different personas. When it comes to the practical problem of successfully delivering the profiles correctly this is usually achieved by either using a specialist content behavioral platform or by bespoke software development. Most platforms identify visitors by assigning a unique id cookie to each and every visitor to the site thereby allowing them to be tracked throughout their web journey, the platform then makes a rules-based decision about what content to serve. Again, behavioral data can be combined with demographic and past purchase history in order to produce a greater degree of granularity in the targeting.
Self-learning onsite behavioral targeting systems will monitor visitor response to site content and learn what is most likely to generate a desired conversion event. Some good content for each behavioral trait or pattern is often established using numerous simultaneous multivariate tests. Onsite behavioral targeting requires relatively high level of traffic before statistical confidence levels can be reached regarding the probability of a particular offer generating a conversion from a user with a set behavioral profile. Some providers have been able to do so by leveraging its large user base, such as Yahoo!. Some providers use a rules based approach, allowing administrators to set the content and offers shown to those with particular traits.
Network Behavioral targeting
Advertising Networks use behavioral targeting in a different way to individual sites. Since they serve many adverts across many different sites, they are able to build up a picture of the likely demographic makeup of internet users. An example would be a user seen on football sites, business sites and male fashion sites. A reasonable guess would be to assume the user is male. Demographic analyses of individual sites provided either internally (user surveys) or externally (Comscore netratings) allow the networks to sell audiences rather than sites. Although advertising networks used to sell this product, this was based on picking the sites where the audiences were. Behavioral targeting allows them to be slightly more specific about this.
Behavioral targeting by itself is generally defined as identifying consumers’ browsing habits to help you make educated targeted decisions when it comes to future marketing and advertising campaigns.
For those with an online storefront, behavioral targeting is the practice of studying browsing and purchasing habits of previous customers in order to predict what customers will buy in the future. When properly used and interpreted, it can let you know how to properly target your advertising efforts to ensure that you only reach customers who are interested in your services and products.
Behavioral Targeting Pros
1. Allows you to know your customers very well
As the internet continues to open up a wealth of marketing opportunities the need to stay directly in tune with customers’ specific wants and needs will increase twofold. In order to market a product it will no longer be enough to discuss how a product works, but how a product can work for the consumer. Thus, an effective consumer marketing strategy is needed in order to create a solid customer base that recommends your services or products and continues to return for repeat visits.
Marketers should understand their craft very well, and have the guts to operate marketing without fear. This means knowing their customers very well, and understanding that their clients are not the sales reps as in the old model, but the customers themselves. Marketers should be customer oriented and focused. They should keep two marketing truisms. One is to retain existing customers and bring your market to your customers. Existing customers are a great source for new business, and you can bring your market by offering incentives on sales, causing spur buying. Another strategy is to implement win-back campaigns for old customers.
2. Anticipate the needs and wants of your current clients.
With behavioral targeting, you can anticipate the needs and wants of your current clients, and use this information to base your marketing decisions on the assumption that the needs of your current clients will close match the needs of your future clients.
Predictive behavioral targeting allows you to be ahead of the bell curve. For example, iPhone’s global success is due to it being the first among its competitors to give users apps and full easy touch screen internet access. Everyone else that followed was just a knock-off or attempted competitor.
Behavioral targeting can provide consumers everything they need before they even realize they need it, which almost always guarantees a sale. Online businesses can anticipate consumer browsing habits and offer suggestions that lead to your products.
3. Increase your productivity.
Properly used, behavioral targeting is a tool which allows you to increase your productivity without spending much initially. This involves studying the behavior of your average client so you know where to search for them and ensure that your ads are being viewed by this audience. This is a much better solution over putting out a general ad and hoping an interested party will happen to view it.
Behavioral targeting allows you to cut time and costs by utilizing behavioral targeting tactics and focusing your advertising efforts on your target audience. When you place the appropriate service or project dressed in a marketing effort they appreciate, and with a price tag that meets their expectations, your marketing sales profits will skyrocket.
The essential elements to targeting are looking for the right target segment and handing out the right advertisement towards that segment. These elements make advertisement much cheaper, because advertising companies don’t have to bombard individuals with undirected advertisement; they will just focus on individuals who are more than likely to respond to their advertisements. They do this by behavioral profiling, which obtains several kinds of information from users, including site registration data, keyword searches, demographic data IP address, country, zip code, history of ad exposures, among others.
In addition, small businesses that do not have lots of money can still take advantage of the current internet advertising market by employing behavioral targeting tactics.That’s because many advertising companies will use behavioral targeting tactics for you if you contract advertising with them.
4. Marketing Research and New Innovations
Marketers have discovered that there is another use for behavioral targeting aside from online ad sales. They found out that it is a good way to do some research and figure out the kind of people that buy their products; for example, what else are their clients interested in aside from their products.
Behavioral targeting also opens new avenues for the advancement of online advertising. For example, cell phone personalized data shows a lot of useful information, including street location. Combined with online advertising tools, the result is behavioral and geographical targeting, allowing advertisers to know the exact person most likely to buy their product and at the right time.
Cell phones can use zip code, area code and GPS data to let users know where the nearest business establishments are. Ads will show up in your cellphone, selling products sold by local businesses within your present location.
5. A Win-win situation for both customers are advertisers.
Cost-per-click (CPC) will rule the ad industry as advertisers will only pay when the shopper clicks the ad and comes back to the retailer’s site. With this CPC model, innovative ad technologies will automatically prioritize the shoppers with the greatest history of clicking on their ads, while minimizing or eliminating the ads served to online shoppers who have historically not interacted with the retailer’s banners – therefore saving retailers money by not serving ads to those who do not click. On the other hand, online shoppers simply do not have the time or interest in viewing or clicking generic ads that do not apply to their shopping tendencies.
Advertisers only want to pay for clicks that are driving sales, and consumers want relevant ads about products or services they actually care about. A study conducted by PreferenceCentral suggests online consumers are growing increasingly comfortable with targeting and retargeting. A majority of consumers prefer relevant, tailored ads as a trade-off for quality, free online content.
Behavioral targeting is twenty to thirty percent more expensive than other traditional online advertising strategies.
It is not an overnight process. In order to see segment marketing work oftentimes a company needs to rework itself from the management level up and invest in either consultation agencies or a consumer research team. The profits from segment marketing are dependent on how invested and thorough the business is when dividing its market.
2. Doesn’t work for all products
It doesn’t work for all products. Usually behavioral targeting is more effective for products that don’t have mass appeal. If your products are for senior citizens, for example, it may be a tad more difficult to find viable viewers.
3. Privacy Concerns
When the products and services offered by the company require privacy, a person may be annoyed and offended if he or she receives an email offering him those kinds of items and services. There are always strings of privacy attached to any information from individual. Conservatives call it spying when those supposed private information were exposed for the purpose of marketing.
As for now, targeting is modest because of several privacy restraints. FCC rules set limits to the use of location and other customer data. They also set other restraints, such as the ability of users to easily opt out of mobile updates anytime they want to.
Data-mining technology has raised eyebrows as privacy violation is inevitable for all of these used data without permission. Several scientists have attempted to create tools that would limit databases’ ability to extract personal information. Others suggest proper disclosure; one should limit sharing information to companies on doesn’t trust, and share only personal information to those one trusts.
Trust is a main issue, and behavioral targeting companies claim that they are highly responsible for these data, imposing bans and regulations. However, some consumers aren’t confident. They are wary about what these large companies can manipulate users to doing in the future, as they manipulate us into buying certain products now.
Targeted ads are informative, but privacy entails prevention focus among consumers, such that they become more sensitive to the presence or absence of negative outcomes. Furthermore, prevention focus makes consumers more wary of manipulative intent. Ultimately, it is privacy concerns that primarily cause negative impressions on consumers.
4. Problems with cookies and usernames.
The most common way to track user online behavior is with cookies. They are used to track behavior by observing a user’s mouse clicks. The aim is to obtain enough data to record a user profile and determine his/her preferences, so that ads can be personally served, increasing a user’s purchasing desire. The downside of this technique is that there may be multiple users in one computer, such as in public venues. Furthermore, browsers now have the option of deleting cookies and choosing to prevent some or all cookies from gathering data.
Another common technique is the use of username and passwords. THis method is more effective than cookies because tracking a user’s preferences become more personalized. However, some users share their usernames and passwords with others, while it is highly likely for several users to have the same usernames and passwords. It may be frustrating for users as well to keep track of these information in various websites.
5. Problems with location-based marketing.
Location-based marketing is not that popular among the majority. Most of us would prefer privacy with our cell phones. Seeing an ad in our cell phone is not a marvellous event. The ad will need to add relevant information to the situation, otherwise users will get the feeling of being spammed.
6. Health Risks Caused by Highly Influential Ads.
Digital marketing will continue to be a strong force in the society, but it raises concerns about the possible health risks these highly influential ads can do to the society, and especially to the youth and cultural minorities that have a unique susceptibility to obesity and health related problems. Specific digital marketing practices that potentially raise these health issues should be regulated.
For example, some practices make it hard for consumers to distinguish between content and marketing, and blurs the lines between point of purchase and influence.
Generally, these practices should be developed under the considerations of adolescent and child development, government advertising rules, industry guidelines, etc. If not addressed properly, these emerging digital marketing trends could have a long-lasting unwanted effect on the public health.
7. Uneducated clients.
One of the challenges of behavioral targeting is educating clients about it, and helping them understand what it is all about. Advertisers should also be told that while behavioral targeting is effective, it works best when complemented with other advertising techniques.
8. Limited Reach.
Behavioral targeting is very effective for highly motivated consumers, but consumer preferences change rapidly; a slight targeting delay backfires for the consumer. Behavioral targeting may ignore potential customers, especially those who need motivation and influence.
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).
Online Marketing Düsseldorf 2007
This is a video about behavioral targeting with Frank Wagner. Frank Wagner tells how he explains to his mother what his job in behavioral marketing is all about.
This is the summary of an article by Markus Svensen, et al. You can get the pdf of the behavioral targeting article here: Broad vs Narrow: Modelling Strategies for Online Behavioural Targeting.
The estimated value of online advertising for the year 2011 is 28.5 billion dollars. With online advertising, you can reach a wide audience that are most interested in the products you offer. One kind of online advertising is display ads. For display ads to work, one can use contextual advertising in which ads put up in websites are contextually similar to the content of the site.
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.