September 17, 2018 Show
For many companies, traditional advertising can feel like an arbitrary, hit-or-miss operation. Carefully crafted messages sometimes fall short without an apparent reason. Potential customers don’t connect with the product in a way that encourages them to engage and purchase. These less desirable results often stem from marketers creating ads that fail to address the viewer’s particular interests and desires. They can also result from reaching the wrong audiences altogether. In the age of data and advanced tracking technologies, random marketing should be the way of the past — especially on the web. Not only have prior methods lacked effectiveness, but they have led to the tremendous waste of valuable resources over the years. If you are an online advertiser, you can use the innovations of data management to target audiences that offer higher conversion rates. Here is what this article will cover: What Is Behavioral Targeting?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. Start Reaching the Right Audience What Are the Benefits of Behavioral Marketing?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:
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In turn, the viewer also benefits from behavioral targeting in three ways:
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. 1. Collect CookiesWhen 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. 2. Create a User ProfileAs 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. 3. Designate Consumer GroupsUsing 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. 4. Share Relevant Information With ViewersAt 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. For this process to be successful, it requires a powerful data gathering tool and a successful means of implementing it. To do so, the best behavioral advertisers use a data management platform, like the one we offer at Lotame, that provides reliable data-collection tools and cutting-edge analytical resources. Start Reaching the Right Audience How Successful Behavioral Targeting Uses Your Data Management PlatformNearly every company has data on their customers. Some collect it proactively, while others end up gathering information unintentionally. Either way, data is only useful if you know the right way to use it to attain any desired results. For example, advertisers want to make sure they implement the information correctly, so they can avoid creating ineffective ad content. One of the most helpful tools for content creators is a data management platform (DMP), which can help harvest data about their audience, store it, analyze it and use the results for successful behavioral advertising. Learn more about DMPs in this short video: What makes a DMP beneficial for companies looking to use behavioral targeting? The right DMP will know what kind of data a company needs from users to achieve a specific outcome, drawing from sources of both online and offline data to drive optimal advertising potential. Which Categories of User Information Do Data Management Platforms Gather?Computer browsers are one of the most prominent sources of behavior information for targeted ads. However, DMPs tend to go a step further than focusing only on web data. Consumers are people with a variety of interests and preferences — in both professional and leisure realms of life — some of which can’t be determined by only looking at online habits. That’s why the best DMPs take a look at offline information and other data a consumer’s device gathers on a regular basis. A few other categories DMPs can access to find information on a consumer’s regular habits and histories include:
Gathering these data points to create content that represents the consumer and highlights their interests can be a challenge. Fortunately, with the help of a quality data management platform, the process becomes much more achievable. While the data categories above define some of the types of information DMPs can collect, the specific behaviors that reveal this information aren’t necessarily evident from looking at the data types themselves. To create valuable material, DMPs must monitor a range of web activities and record the relevant information for advertisers to use to their advantage. What Types of Consumer Behaviors Do Behavioral Targeting Companies and DMPs Track?Companies that specialize in behavioral marketing by implementing the full potential of DMPs must pay constant attention to their audiences. As users perform specific actions online, such as completing a web search, DMPs record that information to continue the conversation with the consumer through ads. Behavioral targeting is why, for example, someone may browse through different products on an online storefront without finalizing a purchase. Then, in the following days or weeks, this consumer will begin seeing ads for that particular website all over their feeds as they navigate the web, a reminder of their expressed interest. Which actions set these kinds of processes in motion? A few of the behaviors DMPs focus on include:
The highly advanced technologies that enable data management and behavior-tracking changed the way companies advertise online unlike any other innovation. Now, consumers can enjoy a richer browsing experience full of ads that speak directly to their interests, while online retailers and service providers reap the benefits of a more efficient, sophisticated means of understanding their audiences. If you find that your company continues to waste time and ad space on ineffective campaigns, it may be time for you to leap into the data-centered world of behavioral targeting — and we know just the place for you to start. Choose Lotame to Manage the Data for Your Behavioral Targeting AdsIncreasing your conversion rates has never been easier thanks to the innovation of behavioral targeting. When you publish content to reach users on a personalized level after they have demonstrated specific interest, you can improve the cost-effectiveness of your advertising, saving both energy and resources. Lotame is here to help you navigate the unfamiliar territories of data-centered marketing approaches. If you need additional information about the intricate details of behavioral targeting strategies, look no further! As an independent leader in the data management industry, we are happy to answer questions and help you decide whether our DMP or other quality solutions can benefit your company. Ready to try it out and start presenting personalized ads to your audiences? Contact us to learn more about our DMP or request a demo for your behavioral targeting today! Related Posts |