Businesses can struggle to stand out to consumers now due to the availability and growth of digital advertising channels. Consumers are typically inundated with calls for their attention throughout their day on a variety of channels, and they can become numb to different messages and advertising tactics.
Staying relevant to a customer’s needs and interests can ensure that company offerings are highly personalized to the correct target audience. One way to do this is with behavioral targeting, which allows marketing campaigns to provide solutions that ring true to consumers while being timely and important.
In this article, we’ll take a closer look at what behavioral targeting is and how marketers can apply this principle to their campaigns to improve their engagement and conversions. Specifically, you’ll learn:
What is behavioral targeting?
Behavioral targeting is a digital marketing strategy that uses the tracking and analysis of user behavior across online platforms to deliver personalized content, offers, and advertisements. Marketers can segment audiences based on shared behaviors and tailor their marketing efforts based on collecting and analyzing digital channel data. This data-driven approach allows marketers to understand user preferences, interests, and purchase intent, enabling them to create more relevant and engaging experiences.
How behavioral targeting works.
Behavioral targeting typically includes various techniques and strategies:
Website engagement.
Once the hard work of attracting visitors to a website is successful, marketers want to retain them and engage with them as much as possible so that they will take a desired action, such as making a purchase.
Behavioral targeting can allow marketers to personalize the user experience through assets like pop-up promotions, ads, and links to related content. These should provide value to the consumer and be based on the products, services, and information they’ve expressed an interest in.
Campaign engagement.
Marketers can also analyze behavior when it comes to their email campaigns to understand which users open, click, or otherwise interact with messaging. This can be used to create follow-up communications based on different target segments and buyer personas with more targeting based on actions.
Marketers can further organize and segment their email recipients depending on how responsive they are to certain messages and the actions they take. Doing so can nurture active and responsive leads into taking additional actions that can lead to a purchase decision.
Purchase behavior.
Behavioral targeting can also be used on existing customers. Customer marketing is a powerful tool that can expand customer lifetime value by further engaging with consumers who’ve already demonstrated an interest in specific products or services.
Marketers can follow up purchases with messaging about similar or related products depending on what visitors have added to their carts or bought. This is a very common type of behavioral targeting, especially for companies with a large ecommerce presence.
Retargeting.
Displaying ads to users who have previously interacted with a website or product, reminding them of their interest and encouraging them to return. Retargeting is effective because it often takes multiple brand exposures before someone buys. The “Rule of Seven” is an old marketing principle that estimates the number of times a prospective customer needs to see an ad before they buy. Intent data, which provides insights into user interests and purchase intent, is becoming increasingly important for optimizing retargeting campaigns.
Predictive behavioral targeting.
Using machine learning algorithms to predict future user behavior and deliver personalized experiences based on anticipated needs and preferences.
Location-based targeting.
This involves delivering targeted ads and content to users based on their location. This can be achieved through various methods, including:
- Geo-fencing: Establishing a virtual perimeter around a specific area to target users within that location.
- Geo-targeting: Delivering location-based advertisements that also use customer demographic information.
- Geo-conquesting: Deploying ads around a competitor's location to attract their customers.
- Proximity marketing: Micro-digital targeting of an exact location or specific radius, such as 200 feet.
Applications of behavioral targeting.
Behavioral targeting is a powerful strategy used across industries to enhance marketing effectiveness and customer engagement.
Ecommerce.
Businesses use behavioral data to create personalized shopping experiences by recommending products based on browsing and purchase history. Targeted promotions help drive conversions by reaching consumers with relevant offers, while abandoned cart recovery strategies use personalized reminders to encourage customers to complete their purchases.
Example: If a customer searches for wireless headphones but doesn’t make a purchase, an ecommerce company retargets them with personalized ads on social media or via email, offering discounts or showing top-rated alternatives.
Travel and hospitality.
Companies in the travel industry use behavioral targeting to suggest destinations and experiences that align with user interests. By analyzing past searches and booking history, they can offer customized travel packages and promotions that appeal to individual preferences. Targeted advertising based on travel behavior further enhances engagement, ensuring users receive relevant deals at the right time.
Example: If a user searches for flights to Paris, a travel agency sends an email with Paris hotel deals, discount packages, and a reminder about ongoing flight sales.
Financial services.
Banks and financial institutions apply behavioral targeting to promote financial products tailored to user needs. By analyzing spending habits and investment patterns, they can provide personalized financial advice and product recommendations. Additionally, behavioral tracking helps detect and prevent fraudulent activity, improving security and trust for customers.
Example: If a user who always logs in from New York suddenly makes a high-value transaction from Russia, a financial institution flags the activity, sends a security alert, and requires additional verification.
Healthcare.
In the healthcare sector, behavioral targeting enables the delivery of personalized health information, ensuring patients receive relevant medical advice and service recommendations. This approach also helps promote wellness programs and encourage healthy behaviors through tailored engagement, ultimately supporting better health outcomes.
Example: If a patient regularly buys allergy medication, a pharmacy emails them seasonal discounts on allergy relief products.
Technology.
Technology companies, such as Apple, utilize behavioral data to refine their brand strategy and enhance product development. By analyzing user behavior, they craft marketing messages that resonate with their audience and optimize customer experiences based on preferences and engagement patterns.
Example: If a user downloads a meditation app, they’ll receive recommendations for sleep tracking apps or wellness podcasts.
Marketing seasonal campaigns.
Behavioral targeting plays a crucial role in seasonal marketing by identifying and engaging consumers who have interacted with a brand during key shopping periods. By analyzing past behavior, businesses can optimize their outreach for events like Black Friday, Mother’s Day, and back-to-school shopping, so their campaigns reach the most receptive audiences and drive higher conversions.
Example: A customer who bought Pumpkin Spice Lattes last fall gets a personalized push notification when the drink is back, along with a bonus rewards offer for early purchases.
Behavioral targeting vs. contextual targeting.
Both behavioral targeting and contextual targeting aim to deliver relevant content and ads, but they differ in their individual approaches:
Behavioral targeting.
Focuses on individual user behavior and past actions to personalize experiences. It uses data such as browsing history, purchase history, and search queries to tailor content and offers.
Contextual targeting.
Focuses on the content of a webpage or app to deliver relevant ads and offers. For example, an ad for cooking knives might be displayed on a cooking blog.
Contextual targeting can be less effective than behavioral targeting because it’s not personalized based on a consumer’s actual behavior patterns or interests. However, combining contextual and behavioral targeting can create a powerful marketing strategy that uses the strengths of both approaches.
