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 personalised to the correct target audience. One way to do this is with behavioural 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 behavioural targeting is and how marketers can apply this principle to their campaigns to improve their engagement and conversions. Specifically, you’ll learn:

• What is behavioural targeting?
• How behavioural targeting works.
• Applications of behavioural targeting.
• Behavioural targeting vs. contextual targeting.
• Best practices.
• Getting started with behavioural targeting.

What is behavioural targeting?

Behavioural targeting is a digital marketing strategy that uses the tracking and analysis of user behaviour across online platforms to deliver personalised content, offers and advertisements. Marketers can segment audiences based on shared behaviours and tailor their marketing efforts based on collecting and analysing 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 behavioural targeting works.

Behavioural targeting typically involves three key steps:

1. Data collection: Gathering data on user behaviour through various tracking technologies, such as cookies, web analytics platforms and CRM systems. This data can include a variety of information, such as browsing history, purchase history, demographics, search history, app usage and social media activity.
2. Audience segmentation: Grouping users into segments based on shared behaviours, interests and purchase intent. This may involve creating segments like “frequent shoppers,” “deal seekers” or “new parents.”
3. Targeted content delivery: Delivering personalised content, offers and advertisements to each segment based on their specific behaviours and preferences. This can be achieved through various channels, including website personalisation, email marketing and social media advertising.

Why is behavioural targeting important?

Behavioural targeting offers several key advantages for businesses looking to optimise their marketing strategies:

• Enhanced relevance: By understanding user behaviour, marketers can deliver content and offers that are truly relevant to individual needs and interests. This leads to increased engagement, higher click-through rates and improved conversion rates. Studies show that 76% of consumers are more likely to buy from brands that personalise their marketing strategy.
• Improved campaign performance: Behavioural targeting enables marketers to refine their campaigns and target specific audience segments with personalised messages. This results in more efficient use of marketing budgets and a greater return on investment.
• Stronger customer relationships: By delivering personalised experiences, businesses can foster stronger connections with their customers. This can lead to increased loyalty, repeat purchases and positive brand perception.
• Data-driven decision making: Behavioural targeting provides valuable insights into customer behaviour, allowing marketers to make informed decisions about their strategies. This data can be used to optimise website design, personalise content and refine marketing campaigns.
• Expand your audience: Behavioural targeting allows you to move beyond your existing customer base by identifying new audiences with similar interests or purchase intent. This approach ensures you’re consistently reaching potential customers who are likely to engage with your brand.

Types of behavioural targeting.

Behavioural 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.

Behavioural targeting can allow marketers to personalise 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 analyse behaviour 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 organise 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 behaviour.

Behavioural 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 baskets or bought. This is a very common type of behavioural 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 optimising retargeting campaigns.

Predictive behavioural targeting.

Using machine learning algorithms to predict future user behaviour and deliver personalised 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 behavioural targeting.

Behavioural targeting is a powerful strategy used across industries to enhance marketing effectiveness and customer engagement.

Ecommerce.

Businesses use behavioural data to create personalised shopping experiences by recommending products based on browsing and purchase history. Targeted promotions help drive conversions by reaching consumers with relevant offers, while abandoned basket recovery strategies use personalised 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 personalised ads on social media or via email, offering discounts or showing top-rated alternatives.

Travel and hospitality.

Companies in the travel industry use behavioural targeting to suggest destinations and experiences that align with user interests. By analysing past searches and booking history, they can offer customised travel packages and promotions that appeal to individual preferences. Targeted advertising based on travel behaviour 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 behavioural targeting to promote financial products tailored to user needs. By analysing spending habits and investment patterns, they can provide personalised financial advice and product recommendations. Additionally, behavioural 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, behavioural targeting enables the delivery of personalised health information, ensuring patients receive relevant medical advice and service recommendations. This approach also helps promote wellness programmes and encourage healthy behaviours 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, utilise behavioural data to refine their brand strategy and enhance product development. By analysing user behaviour, they craft marketing messages that resonate with their audience and optimise 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.

Behavioural targeting plays a crucial role in seasonal marketing by identifying and engaging consumers who have interacted with a brand during key shopping periods. By analysing past behaviour, businesses can optimise 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 personalised push notification when the drink is back, along with a bonus rewards offer for early purchases.

Behavioural targeting vs. contextual targeting.

Both behavioural targeting and contextual targeting aim to deliver relevant content and ads, but they differ in their individual approaches:

Behavioural targeting.

Focuses on individual user behaviour and past actions to personalise 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 behavioural targeting because it’s not personalised based on a consumer’s actual behaviour patterns or interests. However, combining contextual and behavioural targeting can create a powerful marketing strategy that uses the strengths of both approaches.

Behavioural targeting best practices.

To effectively implement behavioural targeting, marketers should consider the following best practices:

Transparency and consent.

Be transparent with users about how their data is being collected and used. Obtain explicit consent before tracking their behaviour.

Data security.

Implement robust data security measures to protect user data from unauthorised access and breaches.

Relevance and value.

Ensure that the content and offers delivered through behavioural targeting are relevant and valuable to the user. Avoid overly intrusive or irrelevant messaging.

Testing and optimisation.

Continuously test and optimise behavioural targeting campaigns to improve their effectiveness and ensure that they are meeting business objectives.

Focus on high-value customers.

The Pareto principle suggests that roughly 20% of your customers are responsible for 80% of your sales. Focusing your behavioural targeting efforts on this 20% can be a highly effective strategy.

How to measure the effectiveness of behavioural targeting.

Measuring the effectiveness of behavioural targeting is crucial to ensure that campaigns are achieving their desired outcomes. Key metrics used to measure success include:

Increased user engagement.

This can be measured through higher interaction rates with targeted ads, such as clicks, likes and shares.

Click-through rate (CTR).

CTR measures how often users click the ads served to them. Higher CTRs indicate that the ads are relevant to the user’s behaviour and interests.

Conversion rate.

This metric tracks the percentage of users who complete a desired action, such as making a purchase or filling in a form, after interacting with a targeted ad.

Long-term customer relationships.

Behavioural targeting can contribute to building stronger customer relationships by delivering personalised experiences that foster loyalty and repeat purchases.

New data and trends.

The field of behavioural targeting is constantly evolving, with new technologies and trends shaping its future. Here are some of the key developments:

Increased focus on privacy.

Data privacy concerns are important to consumers. Marketers are adopting privacy-preserving techniques, such as differential privacy and federated learning, to protect user data while still delivering personalised experiences.

The rise of AI and machine learning.

AI-powered algorithms play an increasingly important role in behavioural targeting, enabling more accurate predictions of user behaviour and more sophisticated personalisation strategies. This allows marketers to move beyond basic demographics and gain a deeper understanding of what consumers truly want. AI can be used to personalise website content, recommend products and optimise email campaigns. For example, Adobe Target uses next-hit personalisation to dynamically personalise a customer’s journey.

Cross-channel personalisation.

Marketers are moving beyond single-channel targeting and adopting a more holistic approach, delivering personalised experiences across multiple channels, including websites, mobile apps, email and social media.

Contextual targeting.

Combining behavioural targeting with contextual targeting, which involves analysing the content of a webpage or app to deliver more relevant ads and offers. This powerful combination allows for the creation of timely, personalised messages that resonate with customers.

Mobile app location-based targeting.

Location-based targeting involves delivering targeted ads and content to users based on their location. This can be achieved through various methods, including geo-fencing, geo-targeting, geo-conquesting and proximity marketing.

Getting started with behavioural targeting.

Customers expect personalised experiences that feel relevant and seamless using real-time user actions to deliver tailored content that drives engagement and conversions.

To make this happen, you need technology that enables data-driven audience segmentation, AI-powered personalisation and automated decision-making at scale. Adobe Target gives marketers the ability to test, optimise and deliver the right experience to the right person at the right moment by turning insights into action.

Ready to take your personalisation strategy to the next level? Discover how Adobe Target can help you create smarter, more engaging customer experiences today.