Traditional advertising may feel arbitrary and hit-or-miss for many businesses. Messages that have been carefully constructed might sometimes fall short for no apparent reason. Potential buyers do not connect with the product in a way that motivates them to interact and buy. These less desired outcomes are frequently the consequence of marketers crafting ads that fail to meet the viewer’s specific interests and aspirations. They might also be the result of contacting the incorrect people in the first place.
However, publishers and marketers have used behavioral data for both advertising and customization for years to improve the relevance and effectiveness of adverts and marketing messages delivered to online audiences. Marketers may utilize behavioral targeting to improve the customer experience and produce results with the correct technology in place.
We’ll take a deeper look at what behavioral targeting is and how it works in this piece.
What is Behavioral Targeting?
Marketers may use behavioral targeting to send appropriate marketing messages to customers depending on their behavior. Customers are segmented based on their interests and stage in the customer lifecycle or buying funnel using data from several channels. These segments may be used to target shoppers with highly relevant information at the exact moment they are most likely to convert. An effective eCommerce personalization strategy includes behavioral marketing as one of its components. It may be used to increase the return on investment (ROI) from bulk and triggered emails, as well as across your website and social media advertising.
The terms “behavioral targeting” and “online behavioral advertising” (OBA) are not interchangeable. Online behavioral advertising (OBA) is a type of online advertising that employs behavioral targeting to provide users specific adverts and tailored information, such as product suggestions. In some ways, online behavioral advertising is a sort of advertising, whereas behavioral targeting is a strategy.
Behavioral marketing nowadays is much more than simply collecting explicit user data; it’s also about deciphering data and deriving appropriate inferences.
What are the benefits of Behavioral Targeting?
Increased User Engagement: Behavioral monitoring gives publishers access to customers who engage with certain marketing content on a regular basis. Consumers may be routed to online marketplaces and get information about a firm in a couple of seconds by using one-click advertising.
Increased Ad Click-Throughs: A tailored ad that catches the viewer’s likes and requirements is a far more valuable tool in assisting consumers to go down the purchase funnel than a generic banner ad with no relevant attraction.
Improved Conversion Rates: Advertisements that reach a behavioral target market are more appealing to individuals who see them, increasing the likelihood that users will seek more information or make a transaction. Companies that use behavioral targeting tactics can experience an increase in sales and returning consumers, as well as increased earnings overall.
What is the process of behavioral targeting?
Data is collected
Behavioral data of customers may be gathered via eCommerce websites, mobile apps, emails, and in some cases through in-store data. Effective behavioral targeting necessitates the real-time collection and coordination of vast volumes of behavioral data. Items explored, carted products, material watched, search phrases, and visitor frequency are among the behavioral data, as well transactional data like average order value and purchase history.
Segmentation of customers
The data gathered is examined and user segments are created. Users are divided into categories based on their activity. Individuals who travel frequently, people who enjoy shopping for clothes, people who frequently return to the same product category, and so on. Customers’ real-time preferences for elements like color, brand, and style may also be tracked with advanced customization systems, allowing for more complex behavioral segmentation.
Applying data for content targeting
After you’ve created segments, you can utilize them to target clients with the most appropriate website content and choose which triggered emails they should get. Lists may be exported to your email service provider (ESP) for use in bulk mailings, as well as utilized to retarget consumers through other channels like social media and Google AdWords. Ad campaigns are tailored to a certain user segment, making advertising more relevant to specific groups of people and enhancing conversion and response rates.
What is the difference between Behavioral targeting and Contextual targeting?
It’s important to understand that there is a difference between behavioral targeting and contextual targeting, which shows information depending on its relevance to the web page presently being viewed – for instance, displaying a tableware ad on a food website.
Contextual targeting entails showing advertisements that are related to the web page’s content. Usually, this kind of targeting does not involve user information; instead, it relies only on the context of the ad. Behavioral data, on the other hand, maybe utilized to increase the relevancy of contextual advertisements.
Advertisers and marketers may target specific consumers via behavioral targeting. The strategy is founded on the idea that ads should be relevant to the user who is viewing the website, rather than the page itself. Because of the increased availability of user data, behavioral targeting has been widely employed in internet advertising and marketing for over a decade.
Thanks to behavioral targeting innovation, increasing your conversion rates has never been easier. You may increase the cost-effectiveness of your advertising by publishing material to target people on a tailored level once they have shown a certain interest, saving both energy and resources.
We live in an era of revolutionary new technology and creative marketing strategies. As a consequence, brands now have access to more tools than ever before. Contextual and behavioral targeting are among the strategies available. Testing and a close examination of the data obtained from this experimentation are required to determine which is best for your business and clients.
You may even need to create your own targeting hybrid because you’re working with a distinct audience. After all, you’ll most certainly require the finest of both strategies.