Behavioral targeting

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  • Anil I thought this was a very good assessment of the various factors. As we try to figure out what's working from a customer messaging perspective at www.springmetrics.com and our landing pages, I was happy to find your slides. Sometimes, its the cobbler's children who have no shoes and right now that's us!
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Behavioral targeting

  1. 1. Behavioral Targeting Anil Batra http://www.AnilBatra.com 2007-2008
  2. 2. Agenda What is Behavioral Targeting? How does it work? What Determines Behavior? What can we target? Why should we use it? Network vs. Site-Side Targeting 5 Step Process for BT Privacy Issue AnilBatra.com
  3. 3. Which One is Better? AnilBatra.com
  4. 4. Customized Home Page? AnilBatra.com
  5. 5. What is Behavioral Targeting?Behavioral Targeting (BT) is the ability to serverelevant content/products/advertisement to users based on their past behavior (actions).Users are usually placed in one or more segments andthe content/products/advertisement relevant to thosesegments are served. AnilBatra.com
  6. 6. How does it work? Web Server 2. The web server BTServer/Tool makes a call BT server or tool which evaluates the user’s cookie .1. User navigates toa website, the siteloads a Web Serverrequest. 3. Based on the segmentation User schema, the cookie is then placed into the appropriate bucket and served relevant content. IMG Publisher / Client/Network Site AnilBatra.com
  7. 7. What Determines Behavior? Pages/Content Viewed Visits Entry Page Path Taken Products Viewed Frequency of page views Conversions (Ex. Past Purchases, Email Sign-ups, Registrations, Clicks) Internal Search Keywords Referring Site Referring Keywords AnilBatra.com
  8. 8. How to Enhance Behavior?• Non-Behavioral:  Geographic Location  IP Based  Language  Connection Speed  Domain  Date/Time  Home/Business
  9. 9. How to Enhance Behavior?• Customer Provided Data:  Gender  Age  Location  Income  Likes/Dislikes  Hobbies  and list goes on• Voice of Customer - Surveys AnilBatra.com
  10. 10. What can we target?• Content Types:  Online media (banner ads)  In-House ads  Offer Messaging  Brand Messaging  Site images  Site Content (text)  Landing Page  Email AnilBatra.com
  11. 11. Why Behavioral Targeting? Behavioral Targeting vs. “Broadcast Approach”Broadcast Approach Behavioral Targeting Approach Deliver the Same Message to All Web Relationship Targeting Users on a Site Content Personalize messages based on the Manager unique relationship between the business (site) and visitor(user) Deliver the same user different Reach Global Personalization messages on different Deliver consistent, relevant message to that channels/sites user (cookie) on any channel/site on the Internet (within your online marketing buys and/or network) Report Results for A Single Objective Segment-Based Marketing Marketing Objective Measure and optimize multiple segment marketing goals simultaneously Find the Best Message for the Customer-Level Insight Overall Campaign on Average Optimization Find the right message for each user segment AnilBatra.com
  12. 12. Why Behavioral Targeting? Message to Users based on the relationship with the Client Broadcast Approach Behavioral Targeting Approach Cross-Sell Loyal Yes Customer Incentive First-Time Site Product Reminder Purchaser Visitor No Up-Sell First-Time Yes Loyal High Value IncentiveCustomer Prospect Purchaser Category Specific No Free Shipping Site Yes High Value Incentive 15% Off Visitor Free Shipping $10 Off No Low Value Incentive Branding Yes Informational Prospec Low Value Incentive t General Messaging Informational Customer segments shown Customer segments shown identical messaging individual, relevant messaging AnilBatra.com
  13. 13. On-Site Behavioral Targeting AnilBatra.com
  14. 14. Behavior Talks • A Visitor enters from home page • Clicks on “TV Section” • Views Few TVs • Goes back to home page (or comes back to home in next visit) What is this “Behavior” telling about the user? AnilBatra.com
  15. 15. Which One is Better? AnilBatra.com
  16. 16. Behavior Talks 90% of the users AnilBatra.com
  17. 17. Which One is Better Now? AnilBatra.com
  18. 18. On-Site Behavioral Targeting Personalized site content for each user based on the market segment the user falls into. This can be used for any content  Articles  Products  Offers  Text links  House ads  External Ads AnilBatra.com
  19. 19. Email Behavioral Targeting AnilBatra.com
  20. 20. Customer ProfileName: John SGender: MaleAge Range: 45Relationship: MarriedLocation: Seattle, WAProfession: Executive in an Interactive and Technology CompanyHobbies: Golf, Madden 09Shopping Habits: • Shops at Nordstorms.com • Interested in shoes and have bought a lot of them from Nordstorm.com • Also buys shirts, trousers and other male clothing items • Loyal customer of Nordstrom.com for many years • Has an account online and login quite often when browsing
  21. 21. Email From Nordstrom
  22. 22. Email Behavioral Targeting Use On-Site Behavioral Data Use Past Emails interaction data Use Off-line Purchase data Send Relevant Emails  Products  Offers  Frequency  Day of the week/month/season AnilBatra.com
  23. 23. Ad Network Behavioral Targeting AnilBatra.com
  24. 24. Which Ad to Show? AnilBatra.com
  25. 25. Behavioral Ad NetworkOnline media inventory targeted to users who fall into specific marketsegments. Users are tracked and targeted where ever they go on the sitesparticipating in the behavioral ad network. AnilBatra.com
  26. 26. How Do BT Networks Work? AnilBatra.com
  27. 27. Prior Visit AnilBatra.com
  28. 28. Which Ad to Show? AnilBatra.com
  29. 29. Network Behavioral Targeting AnilBatra.com
  30. 30. Behavioral TargetingTarget PEOPLE, At the right At the right TIME not pages PLACE Tailor messaging Relevance to the based on where Any page viewed person customers are in the “funnel” Interest Not relevance to Awareness From any device the page content Consideration Conversion AnilBatra.com
  31. 31. 5 Step Process for Behavioral Targeting1 Define Goals To succeed, there has to be an end goal. Consider what your business wants to accomplish, learn, or measure using behavioral targeting. Is your company looking for a short-term return on investment, or a long term learning plan? Define Customer Segments2 The key to business is in knowing your customers. Use Behavioral Targeting to identify who your most valuable customers are, what qualities in business is most important to your customers, what is your typical customer’s lifecycle, and have the ability to take this information and identify what your sales funnel looks like. Understand Success3 Understanding what success means to your business will help you determine how to measure it. Build ROI Models to see if the success will be as big as you except. Select Tools and Vendors4 Examine your current business goals and identify what (if any) site analytics tools are current-ly in place and see what kind of resources are available for implementation and maintenance. Consider what kind of reporting will be required and how often. Continuous Improvement5 Analyze improvements from using Behavioral Targeting for continuous improvement in your business and optimize tool for A/B testing and multivariate testing. AnilBatra.com
  32. 32. Privacy Issues Is there an issue?  Non-PII  PII Data  Site Side Privacy Policy  Opt-Out or Opt-in Why is there an issue?  Misuse of data in past  Lack of consumer education  Who owns the data AnilBatra.com
  33. 33. Easing Privacy Concerns – 5 Step Process1. Build trust with your consumers.2. Educate them what Behavioral Targeting is and how you collect the data and use it.3. Provide them a compelling reason to allow you to collect their data.4. Build an opt-in model allowing users to control what data they want you to use.5. Give users a way to easily opt-out of Behavioral Targeting. AnilBatra.com
  34. 34. They Were Doing Behavioral TargetingNeed Help with Behavioral Targeting?Email Me.Anil BatraAnilBatra.combatraonline@gmail.com@anilbatra AnilBatra.com

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