Behavioral Targeting - Changing the Rules

Behavioral targeting is the act of basing future advertisements to a customer or prospect upon demographics and past web surfing habits that indicate what a person likes. As a person surfs more and demonstrates preferences for one thing over another, information becomes more refined, leading to future advertisements that may more closely align with what a person is truly looking for.

Say, for example, you did a search for "wine" on Google, then went onto the wine research site, WineSpectator.com to look up the ratings and characteristics of top vintages of wine from Chile. With the aid of behavioral targeting software behind the scenes, an advertiser can ensure that what you see upon your return to the site will be more narrow and specific to your interests, in this case, vintage wines from Chile.

ONLINE ADVERTISING SHIFTS

According to a September 2006 report from Susquehanna Financial Group, "Behavioral targeting's influence continues to grow as a game-changing factor in the growth of online advertising and the ability of marketers to use online ad dollars more effectively. Susquehanna Financial Group predicts 32% annual growth in behavioral targeting services, reaching $5 billion in 2011. Achieving this growth will require more behavioral data for fast, flexible creation of well-defined, highly-targeted audience segments."

Industry participants are now using behavioral targeting as a standard strategy rather than chalking it up as a passing fancy or unrealistic marketing ideal. In fact, it is likely to show up very soon in other areas of digital media as well, such as on cell phones and PDAs. Some publishers may even make targeted advertising part of their value proposition.

SHOULD CONSUMERS BEWARE?

Consumers have also begun to appreciate what behavioral targeting can do. Although some in the industry have voiced concerns over privacy issues concerning the collection of behavioral data, it is more realistic that consumers will understand and appreciate the more relevant and streamlined Internet experience they are likely to enjoy as a result of it. Users are tired of pop-ups, interstitials and other forms of intrusive advertising that do not add any value to their surfing experience.

EMG FINDS IN-HOUSE APPLICABILITY

EMG's consumer business, MiracleMind, is a subscription-based e-learning membership that provides a single destination for coursework such as technical and business skills, kindergarten through grade twelve, self-help and personal empowerment, and products and services to assist consumers in researching, selecting and applying for higher education programs.

Since MiracleMind prospects are from all different walks of life and have tremendous diversity in how and why they are engaging in online education, behavioral tracking has become an important tool in knowing what is relevant for a prospect at any point in time. Dynamic content generation, targeting and delivery that focuses on real-time behavioral analysis of user activity and preferences can improve the experience for all users.

In addition to education consumers, other prospects that frequently seek information about the MiracleMind e-learning program are sales affiliates, media suppliers and subject matter experts. After the first visit to the site, EMG will have collected enough information to be able to provide a meaningful interaction with those prospects upon their return to the site.

For example, sales affiliates may be interested in knowing how they can make money by promoting MiracleMind through their existing channels. Media suppliers may have content libraries that they are looking to monetize that would be of interest to EMG. Subject matter experts who have experience and credibility in popular fields of interest may be looking to collaborate with EMG.

When a prospect clicks through a collection of free white papers, courses, discounts, engaging content and interactive surveys presented via a "MicroSite" or "SiteCenter", the MicroSite captures all activities initiated by the visitor and builds a profile that allows for a customized next step based on their individual interests and preferences. This step could be as simple as sending additional information or leading to a live phone conversation.

CONCLUSION

For decades, advertisers have followed the time-honored mass-marketing rule of pitching a single product to a large mass audience. In the radically different business paradigm of one-to-one production, marketing and communication, a one-to-one marketer focuses on a share of a customer, one customer at a time, rather than just share of market. With the application of new technologies, that story is rapidly changing for companies large and small.