Behavioral Advertising

Behavioral advertising is a technique used by online advertisers to present targeted ads to consumers by collecting information about their browsing behavior. Several pieces of data may be used, such as: The pages browsed on a website. The time spent on the site.

Why is behavioral ad targeting important?

The amount of data marketers have about users allows them to create very detailed profiles and to display ads relevant to each user segment accordingly. The premise behind behavioral targeting is that it benefits the visitor as much as it benefits the site displaying the ads.

What is contextual and behavioral targeting?

While behavioral targeting monitors the behavior of the online user, contextual advertising focuses solely on content. Contextual advertising is a compelling offering for marketers because as the content of a Web page changes, so do the ads.

What is behavioral segmentation in marketing?

Behavioral segmentation is defined as the process of dividing the total market into smaller homogeneous groups based on customer buying behavior. Behavioral segmentation is done by organizations on the basis of buying patterns of customers like usage frequency, brand loyalty, benefits needed, during any occasion, etc.

What are behavioral characteristics in marketing?

Characteristics such as a customer’s age, gender, location, income, and occupation frequently correlate to behavioral data.

Is behavioral advertising still effective or are people getting annoyed with consumer profiling?

The Wall Street Journal published an article about it. Their conclusion was behavioral advertising works only slightly better (about 4%) than regular online ads. But because the cost is usually more than 4%, it is simply not worth it for most advertisers, unless your customer lifetime value is really, really high! Read the full article for more details.