By Ivan Kreimer
“Try to please everyone, and you will please no one,” said Aesop 2,500 years ago.
I’d like to adapt that saying to the modern marketing world:
“Try to target everyone, and you will sell to no one.”
Targeting is the lifeblood of effective lifecycle marketing. Marketers know that and live by it. The problem lies in finding the target audience. It can be a challenging process, which can feel like finding the holy grail.
Every marketer wants to find it, but few can.
Historically, marketers overcame this problem by showing ads to the mass market, which can be as effective as trying to hit a tiny nail with a wrecking ball.
In some other cases, marketers buy lists of people that fit a certain demographic.
Both tactics can be costly and ineffective.
The online marketing world provides marketers with a tactic that can help them overcome this problem. That tactic is behavioral targeting.
What is behavioral targeting?
Behavioral targeting is a technique publishers and advertisers use to segment an audience based on its users’ behaviors. Marketers create user profiles of individual consumers based on the behavioral information taken from:
- Web analytics tools
- Applications and cookies
- Browsing and search history
- IP addresses
The information advertisers take from these sources allows them to target their ads to each person’s needs and interests based on specific behaviors, such as:
- The number of visits they have made to a site
- What products they have bought
- What categories they prefer
- If they are registered as a member
The behavioral patterns described above can help marketers offer unique browsing and shopping, which offers many benefits to both to users and marketers alike.
Benefits of using behavioral targeting
We live in a world where consumers are used to getting bombarded by ads all the time. This creates a double-sided problem: while brands try all sort of strategies to reach out to people and make them interested in their ads, consumers try to avoid brands and their ads as much as possible. Researchers call the process in which consumers avoid ads by all means “banner blindness.” People psychologically blind themselves to any ad that seems pushy or overly promoting.
This situation is quite absurd, as companies supposedly provide products and services people want and need. If it weren’t for the revenue companies get from their customers, the former wouldn’t exist. An effective way to overcome this challenge is to use behavioral targeting.
Behavioral targeting serves ads to consumers who are more likely to find them relevant based on their actions they take. There’s little guessing involved; companies can derive certain attributes from those people based on their past actions. As a result, behavioral targeting allows marketers to serve ads that have:
- Higher relevancy
- Higher engagement
- Higher CTR
- Lower CPC and CPA
- Higher ROI
Behavior targeting provides an additional benefit to marketers, one that affects the way consumers see themselves.
In 2016, a group of researchers decided to understand the reason why behavioral targeting works so well compared to traditional demographic or psychographic targeting. They ran three tests. In the first study, researchers found participants were more interested in buying a Groupon for a Go to the full article.
Source:: Business 2 Community