Behavioral Targeting - The Magic Bullet?
Photo by Brooke Lark on Unsplash
As John Wanamaker once stated, “Half of the money I spend on advertising is wasted; the trouble is, I don’t know which half.” Marketing teams and professionals know it can be a frustrating endeavor to get your message across, no matter if you’re a billon-dollar brand or a startup. With the advent of the internet, many people thought targeting would be precise with their hard-earned marketing dollars laser-focused on driving sales. As the internet continues to evolve, so does the myriad of marketing trends, and the potential for confusion increases.
Enter behavioral targeting into the mix. There are few different elements that range from basic to complex, but the simple concept is this: using anonymous user data, marketers can target ads to consumers based on their unique online behaviors. This can lead to ads directly served to a potential client you know who is in the market for your product or service which, generally speaking, leads to higher effectiveness for your marketing campaign. Ads can be displayed across a variety of mediums; a tablet, smartphone or desktop computer, and often across different websites as that user travels the web. The ads are targeted and although anonymous, often follow users across devices. To illustrate how this works, let’s take an example of a consumer looking to buy a new car, as the auto industry loves to use this type of marketing.
Let’s say our consumer, Bob, recently received a promotion at work. He now has greater disposable income, and as a result, would like a sporty new car. He is 40, so he is well-versed with the internet, and spends a considerable amount of time researching before making large purchases. He starts doing several searches on his favorite search engine, such as “best luxury cars in 2019,” “highest rated sports car 2019,” and “best rated luxury auto brands.” After doing these searches, he will likely spend considerable time reading articles from a variety of sources. He may even visit a few dealer websites, or a used car website. Once sufficient data shows that Bob would like to buy a new or used car, he will begin to see ads targeted to him, luring him toward a particular brand or dealer. Often, once a purchase intent is established, a brand intent may not be - and this is a great opportunity to pull in a consumer.
For at least the next 30 days - and sometimes for a year or more - Bob will have ads “follow” him from site to site, encouraging him to check out their brand or selection from a dealer. These ads have been a direct result of his online activity and the articles he has been reading. As he continues his buying journey, ancillary marketers to the industry, such as auto loans and after-market suppliers, will likely be in the mix as well. For marketers, this direct targeting presents an enormous potential - targeting consumers you know are already in the marketplace for your product, and the opportunity to attract them to your brand. This type of marketing also has far higher metrics for your goals with ads generally receiving higher engagement rates, ultimately driving more traffic to your website.
So, the question often becomes this - if behavioral targeting is so effective, and targets a consumer you know is in the market for a product, why not divert the majority of your marketing dollars to this sole tactic? There’s a two-fold reason to avoid using only one primary means for your marketing strategy. First, relying on a single marketing tactic (whether digital or traditional) is risky, since there is no diversification in your plan. It is not uncommon for a business owner or marketing team to spend significant dollars on a sole tactic - whether new or old - and then pull the funds when it does not produce the desired result. Consistency in any marketing strategy across mediums is critical to your brand. Marketing plans, particularly in the digital space, should always pair with several other methods to help hit your goals. Second, behavioral marketing has a checkered reputation amongst consumers. Behavioral targeting can come across as bit creepy and intrusive if not done correctly, as most of us don’t like to be reminded that our internet lives have been constantly monitored for information, regardless of whether or not we remain anonymous. While some consumers may prefer targeted ads based on their online behavior, it is likely just as many are bothered by them and may avoid your brand as a result. In conclusion, behavioral marketing can be very effective, but it is not a magic bullet for your marketing dollars.
So, what does this mean for you as a marketer? Consider behavioral marketing as part of your marketing plan, in conjunction with your overall strategy. Develop ads that are creative and compelling, focusing on the highlights of your brand over marketing to a consumer based on their search history. Remain consistent with your messaging, and invest in methods such as blogging, vlogging, and content creation across social media. Create the content & ads that you would want to see as a consumer yourself.
Digital marketing is a confusing space. Drop us a line and we can point you to additional resources that we would recommend. Or, better yet, set up a free consultation with us to review your current marketing strategy and help you find ways to make it as effective as possible.
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