Did you know that 76% of marketers fail to use behavioral data correctly? That's 76% higher than it should be.
Using behavioral data to display relevant ads is a marketer's dream come true. So why aren't we taking full advantage? It could help you beat the competition by over 80% — or it could help them beat you.
Luckily, we won't let that happen. This 101 guide will cover all the basics of behavioral targeting. Ready? Let's begin.
What Is Behavioral Targeting?
Behavioral targeting is a technique that allows online advertisers to show targeted ads to specific users based on their past actions, aka behavioral data. For example, if a user has visited a website about cars, the advertiser might show that user an ad for a car dealership. To take advantage of targeted advertising, you'll probably need a tool like a data management platform.
What Exactly Is Behavioral Data?
Behavioral data is information collected about a user's behavior — we know, shocking. This data can include things like the websites a user has visited, the products they have searched for, and the videos they have watched.
How Does It Work?
When a user visits a website, the web browser sends information about the visit to the website's server. This information includes things like the user's IP address and the pages they have visited. The server then uses this information to create a profile of the user. This profile is then used to determine which ads to show the user.
Behavioral Targeting vs. Contextual Targeting
Behavioral targeting and contextual targeting are two methods that advertisers use to determine which ads to show users. While the difference between the two is somewhat technical, it boils down to this:
- Contextual targeting uses information about what content a user views on a website (such as keywords in an article) to determine which ads to show them.
- Behavioral targeting uses profile information like which websites a user visits and how recently they visited them.
Why Is Behavioral Targeting Useful?
Behavioral targeting can be beneficial for advertisers because it allows them to show relevant ads to users who are more likely to be interested in their product. It also reduces wasted ad spending on users who have no interest in the advertiser's product.
How Is Behavioral Targeting Implemented?
There are several ways that behavioral targeting can be used, depending on the website and the advertising platform. In some cases, a web browser or plugin will share personal data about user actions with an advertising network to target ads based on those actions.
In other cases, websites may use JavaScript code (called a "data layer") to send this information directly to an advertising network such as TURN or Atlas Solutions.
What Are the Benefits of Using Behavioral Targeting?
The benefits of using behavioral targeting include:
Increased relevancy
Behavioral targeting allows advertisers to target ads to users who are more likely to be interested in their product. This results in increased relevancy for the user and a better overall experience.
Reduced waste
Behavioral targeting also reduces wasted ad spending on users who have no interest in the advertiser's product. This results in more efficient use of advertising dollars.
Greater insight
Behavioral targeting also gives advertisers greater insight into how users interact with their website and which ads are most effective. An advertiser can use this information to improve the effectiveness of their campaign.
What are some of the concerns with behavioral targeting?
Privacy and user trust
This technology has raised many privacy and user trust issues. Because advertisers can use users’ past actions to predict their future actions, there is concern that companies could use this information for less than ethical purposes. Examples include showing ads to those who do not wish to receive them or using them as the basis for decisions such as providing credit.
Imprecise targeting
Behavioral targeting can also result in imprecise ad delivery if users share computers or delete cookies. This means that advertisers may waste money by showing ads to users who have no interest in their product or miss opportunities to show ads to users interested in their product.
Clutter and annoyance
Behavioral targeting can also lead to an increase in the amount of advertising that users see. This can lead to clutter and annoyance, particularly if users are shown ads irrelevant to them.
What can be done to mitigate these concerns?
You can do several things to mitigate the concerns with behavioral targeting:
Increased transparency
One way to address privacy and user trust concerns is to increase transparency about how behavioral targeting is used. This could include providing more information about which companies collect data, what data is being collected, and how it is being used.
User control
Another way to address privacy concerns is to give users more control over their personal data. This could include the ability to opt out of data collection or view/edit the information that has been collected about them.
Enhanced targeting
Another way to address the concerns with imprecise targeting is to enhance the targeting algorithm to be more accurate. This could involve incorporating additional user data points such as location, age, and gender into the targeting algorithm.
Better advertising
Finally, one way to mitigate the concerns with behavioral targeting is to improve the quality of the ads themselves. This could involve ensuring that ads are relevant to users, are not disruptive, and do not contain misleading information.
Examples of behavioral advertising
With the rise in the utility of personalized ads, marketers today have several options when it comes to tools for launching behavioral advertising campaigns.
- Google Ads: Google Ads is an online behavioral advertising tool that allows advertisers to show ads to users based on past actions such as website visits or searches. This form of behavioral targeting can help increase the relevancy and success of many campaigns, including PPC campaigns and branding campaigns.
- Retargeting: Retargeting is a type of behavioral advertising where visitors who leave a website without making a purchase are shown display ads related to products they left behind for 90 days after their initial visit. Retargeting operates under the assumption that users may need time to consider their purchase and will come back if reminded about it in an appropriate context — such as via retargeted ads. You can use retargeting to increase conversions by providing users with an opportunity to revisit a website and take the desired action.
- Facebook Custom Audiences: Facebook Custom Audiences is an online advertising tool that involves delivering ads to users who have visited their website or used their mobile app based on data provided by the advertiser. This means that advertisers can control which of their own customers will see their ads for each campaign. The increased relevancy helps create trust between advertisers and consumers since the ad is more applicable.
- Twitter Custom Audience: Twitter Custom Audience is a type of online marketing where past Twitter users who have engaged with a brand, such as by following it or retweeting one of its tweets, are shown ads related to that brand. This form of behavioral targeting effectively increases the relevancy of ads and the likelihood that they will be clicked on. This is because only engaged customers see the ads.
- LinkedIn Lookalike Audiences: You can use LinkedIn Lookalike Audiences to create a lookalike audience based on Facebook Custom Audiences or Twitter Custom Audiences, making it easier for marketers to quickly scale up their campaigns across a wider net of users. This form of behavioral targeting helps advertisers reach larger groups of potential customers within a specific geographic region, industry, age bracket, or other desired demographic.
Make Behavioral Targeting Work For You
As the examples above illustrate, behavioral targeting can be an extremely effective way to improve the relevancy and effectiveness of advertising campaigns. However, it is essential to note that these techniques only work if used in a thoughtful way that considers users’ concerns.
By following the best practices outlined in this article, you can make sure that your behavioral targeting campaigns are successful and provide value to both your customers and your business.
Need help integrating the perfect targeting tool into your martech stack? Portage Labs can help with all your automation needs! Contact us today to learn more.
Frequently Asked Questions
How is online behavioral advertising different from traditional advertising?
The main difference between online behavioral targeting and traditional types of advertising is that in the former, ads are based not on what a company thinks will appeal to a user but rather on information the user has provided via their behavior.
This means that if a person uses Apple products, they can expect to see ads from Apple-related companies because they have shown an interest in these products by using them. In contrast, traditional forms of advertising target users based on assumptions about their interests, that may or may not be accurate for any given individual.
How is behavioral marketing impacting the digital advertising industry?
Online behavioral advertising is on the rise due to its effectiveness in reaching consumers. This growth can be attributed to the fact that behavioral targeting allows companies to reach more relevant audiences with targeted ads.
How have mobile devices impacted behavioral marketing?
Mobile devices have significantly impacted online behavioral advertising by enabling companies to serve targeted ads to consumers even when disconnected from the internet. For example, Google collects mobile device data from Android users and uses it to inform their location-based advertising on both Android and non-Android devices.
Behavioral advertising firms can determine their preferences and interests in different locations by collecting information about where consumers go. For example, if a person visits many fast-food restaurants within the same week, an online advertising firm would infer that they may prefer fast food over other types of cuisine. Companies can then use this information to serve location-specific ads when the device is near an appropriate location.
