Benefits of Behavioral Targeting

Posted by Adam Parikh

Feb 23, 2017 3:32:19 PM

behavioral targeting.jpgBehavioral targeting is a unique form of marketing that focuses on delivering advertising experiences to customers based on the behaviors they have demonstrated to your company. In other words, it works by looking at the purchasing actions of your prospective buyers, and strategizing a selling solution that appeals to the habits that might be unique to your specific audience.

Behavioral targeting focuses on monitoring user activity in relation to your business, and helps you to take the specific needs and interests of your customer into account. Because this form of marketing is more relevant, and based on the needs of your specific audience, it's generally not only an effective solution for companies, but a preferable option for customers too.

But what are the most significant benefits associated with behavioral targeting?

1. A Higher Click-Through Rate

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Research conducted by Ohio State University found that behaviorally targeted advertisements could lead to a click-through rate 670% higher than non-targeted ads. This is easy enough to understand if you think about it. If you create advertisements that are interesting and relevant to your customers, then they're far more likely to click through and see what you have to offer.

Traditional advertisement solutions often leave companies throwing marketing efforts out into an ocean of competitors, hoping that someone might convert. The problem is that there are millions of websites out there, many of which are targeting the same audience at the same time. Without plenty of focus, your marketing efforts will simply get washed away. Behavioral targeting gives you the opportunity to reach out directly to a specific niche or demographic in your preferred audience. This means that you can spend more of your marketing budget appealing to people who are likely to convert.

2. A Higher Conversion Rate

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As wonderful as a good click-through rate might be for marketers - it doesn't mean much without high conversions too. According to studies conducted by the Network Advertising Initiative, targeted advertisements that are based on user behavior receive 6.8% conversions, compared to 2.8% for non-targeted ads.

Conversions are essential for any business. Whether your aim is to have people sign up for your weekly newsletter, you want someone to download a specific eBook, or you want someone to buy a product or service, then conversions are the things that matter most. In the world of marketing, the more you learn about your customers through website metrics and analytics, the more you can tailor your advertising strategy to appeal to your target customers. In other words, you can watch what works and what doesn't, and refine your efforts as you progress and grow as a company.

Behavioral targeting tracks the important metrics that are left behind by your customers, so that you can determine how to interact with them in the most efficient, and effective way. While it's important to continually test, and adjust your strategy, behavioral targeting allows you to begin with a healthy foundation of useful information.

3. A Higher Return on Investment

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Finally, any business needs to know that they're getting good returns on their investments if they want to ensure the immediate and future success of their organization. If your ROI is low, then this may mean that you're spending too much of your budget on building the business, but you're not really getting anything in return. 

The more you work on behavioral targeting to enhance your click-through rates and conversions, the more likely your ROI is to benefit. After all, since behavioral targeting can convince more people to become sales for your company, the amount that you spend on marketing could be reduced, while the amount you earn through valuable leads is improved.

Should You Try Behavioral Targeting?

Though behavioral targeting methods have been the source of some controversy in the past, the truth is that they are often far more effective than you might assume. This is probably one of the reasons why more people than ever before have begun to turn to behavioral targeting options as a way of enhancing and informing their existing marketing efforts.

While behavioral targeting might not appeal to everyone in your target audience, studies have found that it can be very effective at growing an audience, and can often give a more appealing advertising experience to your customers too.

Topics: Online Advertising, Behavioral Targeting, Behavioral Advertising, Click Through Rates, Conversion Rate

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