Any smart marketer knows that online advertising is the ideal medium to find very specific niche audiences because of its targeting capabilities. Usually, when planning a campaign, factors like frequency capping, geo-targeting, and age and gender targeting where possible should be considered in order to ensure that the advertiser hits the mark.

Behavioural targeting in display media

There are additional measures that can be considered in the targeting of audiences. One of these is behavioural targeting: a technique used to make use of information about Web-browsing behaviour to deliver advertisements tailored to individuals’ interests. There are roughly two types of behavioural targeting: targeting on ad level, and targeting according to browsing behaviour.

• Targeting on ad level: A very handy little thing, this behavioural targeting on ad level: once a user has seen an ad and converted, there is no sense in showing that person the same ad again. The ad server can be set to show the user that already converted (provided that post click tracking is in place) a different ad, thereby minimising wastage.
• Targeting behaviour: The more controversial way of doing behavioural targeting is based on the user’s Web-browsing behaviour. By using sophisticated software tools, marketers can tailor when and to whom ads are displayed to by looking at consumers’ online behaviour. What websites did they view, what products were researched, how close did they come to make a purchase? All these factors are worked into complicated algorithms, and promises to deliver stronger and more promising sales leads.

An example of behavioural targeting

A user is in the market to buy a new car. The user searches for more information on search engines:

In addition the user is also looking at reviews on various websites for example:

Image Credit: Autotrader

Sometime later the user visits a business website, but will see a car ad:

Image Credit: BBC

From a consumer perspective, it is important to understand the following:

1. Behavioural targeting is safe. No personally identifiable data is collected.
2. It is possible to opt-out from behavioural targeting. Publishers providing behavioural targeting usually should have more information on their websites about this.
3. Changing the privacy settings on your computer can also be tailored to fit your needs.

We are fortunate to live in a world of online advertising where technology allows magical opportunities to reach the right people at the right time. A word of caution: maintain balance and know that some users will pick up that your advertising is “following” them around. They might feel that their privacy is in jeopardy, and that might do more damage than good. User backlash can generate some negative PR about a brand and could also slow the wide spread adoption of behavioural targeting.

Also check out:

• Geographical Performance Report
• Online Banner Advertising