Behavioral targeting is a marketing method that uses web user information to strengthen advertising campaigns. The technique involves gathering data from a variety of sources about the potential customer’s online browsing and shopping behaviors. This information helps create ads that are relevant to that specific user’s habits and interests, which the publisher can then display in that visitor’s web browser.
The primary purpose of this technique is to deliver advertising messages to the behavioral target markets that have shown the most interest in them. The process involves compiling web searches, purchase histories, frequently visited websites and other information to create a full user profile, revealing what your audience wants, avoids and purchases. Using these data points, companies can formulate ads that align with the individual consumer’s trackable preferences and needs, without conveying messages the viewer would find unappealing or irrelevant.
Behavioral targeting may be data-centered, but its benefits are much more tangible than any abstract number systems. Focusing campaigns on behavioral target markets not only benefits the advertiser, but the consumers themselves reap numerous rewards, as well.
Here are a few of the advantages behavioral advertising offers for the advertiser:
Increase in User Engagement: Behavioral tracking grants publishers access to consumers who display habits of engaging with specific marketing material. With one-click ads, consumers can be redirected to online storefronts and gain intel on the company in a matter of seconds. However, without advertisements that create a sense of interest and trust, viewers are less willing to engage initially. Once the user accesses the company’s website, the brand can offer content from other areas of the site, increasing clicks and activity for targeted ads down the line.
Higher Number of Ad Click-Throughs: A personalized ad that captures the viewer’s likes and needs is a much more useful tool in helping consumers move down the purchasing pipeline than a generic banner ad without relevant appeal. Upon initial exposure to a highly-desired product, an interested viewer is much more likely to seek more information and continue to check out than they are with brands that fail to align with their previous browsing and purchasing behaviors.
Improved Conversion Rates: Advertisements that reach a behavioral target market have higher appeal to those who view them, increasing the chances that users will proceed to request more information or complete a purchase. With the techniques of behavioral targeting, companies can see an increase in sales and repeat customers, enjoying higher profits overall.
A More Exciting Ad Experience: Online users don’t always enjoy the idea of giving up personal information to advertisers. However, they often find it more frustrating when the ads they encounter are irrelevant and unengaging. That’s why a recent study found that 71 percent of consumers prefer more personalized website ads, even if they need to expose their click and purchase habits in exchange. When the ads are more personalized, viewers find their browsing experience more enjoyable overall, leading to higher user satisfaction.
Higher Efficiency in the Online Shopping Process: When ads for products that interest them are prominent in their web browser, consumers can click through to access online storefronts quickly, often being automatically redirected to the page about the particular product highlighted in the ad. From there, adding the item to their shopping cart and proceeding to checkout only involves a few easy steps, which online shoppers often appreciate.
Reminders and Alerts for New Products: By continually seeing ads for products they find attractive, viewers can keep up with new releases and stay informed about brands they enjoy. Additionally, if a user was distracted from completing an online purchase, a personalized ad about the company may remind and motivate them to go back and finalize the transaction.
As consumers engage with personalized ads, they not only have a more favorable shopping experience where they get access to products and brands they enjoy, but the advertiser also reaps the rewards of better sales and website activity, increasing the company’s overall popularity and profit.
So, how does behavioral targeting work to create these personalized and profitable advertising experiences? It’s all about tracking user behaviors online and collecting pieces of data from these behaviors called “cookies.” The process often involves four steps.
When users visit new websites or create an account, for example, a cookie is placed on their computer, stored either temporarily on a local memory drive from which it is deleted after the browser is closed or more permanently on the device’s hard drive.
As cookies are collected and stored over time through new page visits, ad clicks, time spent on particular content and other data, behavioral patterns can form related to shopping and search habits.
Using the patterns and profiles created, companies can separate users into different target market groups. Once these distinctions are made, websites that focus on behavioral targeting will be aware of the purchasing trends, interests, likes and dislikes of the members of these individual audience segments.
At this point, instead of receiving random ads, consumers will only view custom content and personalized ad material that draws from past behaviors when they reconnect to the network or website.