Behavioral targeting (BT) is an advertising methodology in which an advertiser’s creative is shown to users based on the sites they visit and/or what the user does on those sites. The network or publisher creates behavioral segments based on where the user has gone and/or what they have done on various web pages. These are typically broad based descriptions like “Travel Shoppers” or “Auto Enthusiasts”, but they can also be very specific to an advertiser like “Users who put items in their shopping cart, but did not check out”. Another example is a segment based on users who have searched for an advertiser’s company name or product name.
W6M: Banner Ads have terrible click through rates and even worse conversion rates. However, they are starting to grow on me. I always tell clients online is great because you can tracks results. Kind of.
An example that was presented to me was Corona. They spend money on print, radio, online and TV. Then a person goes into a bar and sees a neon sign that says Drink Corona. The neon sign then gets all the credit for closing the deal. Do you think Corona will stop print, radio, online and TV advertising and only focus on neon signs? Probably not. So although banners can track online conversion rates, this is only a part of the results. Also, I have seen reports that PPC in combination with Targeted Banner ads, helps increase the conversions of PPC substantially.
Now, back to Behavioral Targeting. If you are planning a trip to Vegas and you search for flights and hotels for a couple days. The next day you will notice banner ads popping up on Cleveland.com for a car rental in Vegas. Third parties use Cookies and Software to identify you for advertisers. Now, all the sudden I have Vegas companies reaching me where I live.
Next time your are working on a media recommendation, I definitely recommend taking a look at adding Behaviorally Targeted banner ads as part of your media mix.
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