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Behavioral advertising will get a massive boost. The power of the mobile format coupled with the integration with a device you always have will present a treasure trove of data to the behavioral targeting guys, and they will generate some great new stuff.

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Overall, behavioral targeting is an online media tactic that many marketers have found successfully meets their metric objectives. With its projected growth, it is important to be aware of the platform behind it, the methodology, how to incorporate it into your media plan, and perhaps most importantly, what it is not.

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When we buy an audience segment from a behavioral targeting vendor, we’re hoping to reach a group of consumers for which our message resonates so we can do a better job of getting our messages in front of the right people. In its purest sense, this is just good and efficient business practice. To avoid targeting in favor of a one-size-fits-all reach and frequency based marketing campaign leads us away from these marketing efficiencies and is wasteful, inefficient, and unnecessary.

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Article Highlights:

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It is no great secret why the term « behavioral » accrued such negative connotations in the last century. People associate the term and its common usage in psychology or advertising with forces beyond cognition and active agency. For good or ill, « behavioral » tends to mean unfair or subconscious influence – not  just creepy. In a « free country » grounded in « free will » and the « free exchange of ideas, » a culture and a politics founded from the intellectual firmament of the Enlightenment, « behavioral » sounds, well, un-American to some ears, fascistic to others.

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Targeting consumer behavior will drive all online advertising. Semantic technology also will support the targeting. It’s not what I want, but I believe it will happen. But the industry still has work to do.

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When behavioral data is added into the mix, things get even trickier . The ad may be smart enough to know the gender of the viewer, showing a man or woman modeling the item. However, this intelligence isn’t available to the landing page. When a female visitor clicks on an ad with a picture of a stylish woman in khakis, and is then taken to a page with a handsome man in khakis, there is a disconnect. It causes hesitation and bounces.

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There are three main types of segmentation: demographic segmentation, behavioral segmentation, and attitudinal segmentation. But which one is best? It really depends on what problem you’re trying to solve.

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Wal-Mart, a retail giant, handles more than 1m customer transactions every hour, feeding databases estimated at more than 2.5 petabytes—the equivalent of 167 times the books in America’s Library of Congress. Facebook, a social-networking website, is home to 40 billion photos. And decoding the human genome involves analysing 3 billion base pairs—which took ten years the first time it was done, in 2003, but can now be achieved in one week.

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As a content creator and an editor, I’ve been wrestling with the value of the context we provide advertisers to reach our audiences. But as a guy who covers the science of online metrics and technology, I can see the raw power of targeting consumers based on their behavioral patterns, not where they happen to be online at that specific moment.

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« Any ad that is being targeted with data … will need to be identified if the self-regulatory process goes ahead. There has to be a consumer-freindly balance in the marketplace. Data is going to be used far beyond what’s going on in the online space, » says Adam Gerber, CMO of Quantcast.

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Fundamentally, marketing comes down to connecting with your visitors. Creating broader, culturally informed strategies will not only resonate better with your audience, but will further enhance your segmentation and behavioral strategies.

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Buying display advertising without the benefit of behavioral segments, such as retargeting or other cookie pools, becomes less effective.

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Le ciblage comportemental est une technique qui consiste à personnaliser les contenus promotionnels en fonction du comportement des internautes et de leurs centres d’intérêt. Plus performantes car plus en adéquation avec les attentes des consommateurs, les campagnes de publicité s’appuyant sur du ciblage comportemental se développent fortement aux Etats-Unis. En France, cette stratégie est utilisée depuis septembre 2008, mais reste encore marginale.

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It is about data — data in ways we have never before fathomed. The future of advertising is not about social, not about viral videos, not about mobile, not about any new medium or any new ad unit — but about data. Those who know what to do with this will be the new kingmakers, the new rulers of Madison Avenue — or the creators of a new Avenue of media.

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If you decide to use targeting, consider leveraging additional tools and options such as dynamic creative and attribution modeling. These allow the key who, what, where, when and how’s to increase relevancy and insight. Advanced targeting techniques such as creative, keyword and site retargeting make the experience more customized and optimized based on users’ behavior or needs.

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Our user experience consultants, who tend to have backgrounds in behavioral psychology, are great at using qualitative research techniques such as lab testing, eye tracking, and ethnographic studies to get into the mind of users and to understand what makes for a good or bad experience. That’s obviously a different set of skills and tools from our quantitative, analytical approach to solving problems using vast quantities of data.

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We’re hearing a lot about the uses of predictive targeting as part of how we plan future media buys and reach select audiences. Which begs the question: « How accurately can we predict the future behaviors of online consumers? »

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Daphne Liska, senior manager of display and paid search advertising at eBay, told a gathering on Feb. 4 in New York, sponsored by ad exchange AdMeld, that eBay is moving money out of its search budget to earmark for display ads bought through these exchanges. Combined with eBay’s own consumer data, it can find likely customers across the Web. « It’s a way to try these sites, » she said.

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But according to Harvard Business School Assistant Professor Ben Edelman, spyware and its behavioral tracking is also hurting marketers by contributing to click fraud. In research he published to too little notice last month, Edelman found that spyware surreptitiously planted on PCs was deliberately tracking users’ browsing habits to see their likely purchase intent.

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Online display advertising has become a more effective tool for e-retailers now that they can target ads precisely to the consumers they want to reach.

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Using audience segmentation and customizable ad templates, advertisers can dramatically increase revenue over static website creative. Last Thanksgiving, we ran a 30-day campaign with a popular national shoe and apparel brand using audience segmentation with display customization and retargeting technology.

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