Behavioral targeting is poised for a $1.5 billion year, according to
eMarketer. And it makes sense: While the medium is seeing an influx of
new dollars, there's a finite amount of premium contextual inventory
for marketers to buy. Behavioral targeting is a way to sell more
people-targeted advertising online and better use nonpremium inventory
that may not have a natural commercial context.
But just as publishers are relying more heavily on behavioral targeting ...
to drive online ad sales, marketers are finding new uses for the tactic. No longer just a clicks-and-impressions model, analytics-rich
behavioral targeting is helping marketers figure out what types of
people are drawn to their products.
Fair assumption
Take the recent case of Snapple. It was a fair-enough assumption: The
type of people who would be most interested in Snapple's "Good for You"
premium green teas, which launched over the summer with
metabolism-boosting, antioxidant-rich EGCG, would be health-conscious
fitness nuts -- people who made wellness a priority.
To test the theory, MEC Interaction worked with Tacoda to put together
a six-week behavioral-targeting campaign in late third quarter and
early fourth quarter as the cornerstone of its online effort for the
product launch. While the team at MEC wanted the campaign to generate
lots of clicks and impressions, it was really sold on the analytics
provided by behavioral targeting, which allowed MEC to identify the
type of person who was most likely to visit the website and learn more
about the product.
"You can find out what groups emerge as having an affinity for the
product," said Matt Straznitskas, senior partner at the agency.
Not just fitness nuts
Surprisingly, the people who responded best to the campaign weren't
sports fiends but those interested in arts and literature. They became
what Mr. Straznitskas called "the campaign gems." People who traveled
also responded well to the ads -- especially people who traveled
internationally.
A marketer could, of course, try to figure out that stuff on its own,
perhaps by getting respondents to volunteer information on the website.
But, Mr. Straznitkas noted, it's hard to know what to ask.
Behavioral targeting offers marketers a new way of looking at
audiences -- defining customers by behavior rather than by demographic.
Dave Morgan, chairman of Tacoda, said behavioral targeting is actually
a lot closer to the way marketers buy TV than other forms of online
advertising. Contextual ads, for instance, operate on more of a
magazine-style model.
Higher cost
The cost of behavioral targeting can run 20% to 30% higher than ads on
a typical performance network, and, of course, it doesn't work with
every product. Higher-end items, or those without mass appeal, are more
suited to behavioral-targeting methods; for a niche product such as the
Snapple green teas, it was worth it to find the audience sweet spot.
For the next pass, Snapple will try to dig deeper into specific segments within the arts category.
"When you have a client that finds something is working, they
want more of it, and behavioral targeting is a way to get at it," he
said. He said a lot of marketers overlook the back-end analytics they
can get from behavioral targeting: "They think of it as another network
or a way to get at people, but it's also a way to dramatically inform
future efforts."
(Source: Advertising age)
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