What is Behavioral Advertising and Tools Your Brand Can Use

What is Behavioral Advertising and Tools Your Brand Can Use

Sales | Jan 19, 2021

We’ve heard the term behavioral advertising before, and we’ve probably seen it in action. But it still may not be clear to you, especially if you’re just getting started with your business.

Behavioral advertising or targeted advertising is when you see an online ad and say out loud, “Oh my God, this brand gets me.”

Hand turning knob to select retargeting service

So… 

What is behavioral advertising?

It is a system applied by digital marketers or online advertisers to promote well-directed ads to shoppers. The process is done by gathering data and information on consumers’ browsing behavior.

How behavioral advertising works

Websites we visit all use cookies that are inserted into a user’s hard drive. We often notice these as popups where sites ask us a short question.

What this does is allows brands to track the users and their activities.

Silver pen on top of infographic showing segmentation

So, how does it work?

Data collection and analysis

User data is gathered from websites, apps, CRM systems, and marketing automation systems.

Data is stored and grouped in a data management platform (DMP) until a fair amount has been collected.

User segmentation

Once data is collected and analyzed, behavioral patterns begin to take shape. Users are segmented into groups allowing marketers to focus ads on segments that might show interest.

Behavioral targeting application

With defined segments, advertisers can develop campaigns targeting a specific audience.

This process leads to consumers receiving lesser random ads and sees more tailored content and ads on their social media and web browsing, which increases the chances of brand engagement.

Cellphone and pen on top of printed infographic

Online behaviors that advertisers look at

There are two very crucial points of data that marketers look at when designing ads.

IP address & geolocation

Targeting your audience based on their location is like Segmentation 101. You won’t be promoting snowboarding gear in June in Malibu. But you can definitely target sales discounts for swimsuits and flip-flops.

70% of marketers use mobile location data to engage their customers, a study suggests.

The number of visits

If you use Amazon, you’ve experienced this. Amazon suggests related items based on your search history. The retargeting process is a strategy to engage previous consumers or shoppers with abandoned carts. That’s why we receive emails from Amazon based on the products we’ve looked at.

The tools used for showing targeted ads

RichRelevance

If you own an eCommerce site, this tool is right for you. It helps create personalized product recommendations to shoppers. Big businesses like Target, BestBuy, and Walmart use RichRelevance.

Personyze

Looking to customize your website to help you track and target customers in real-time? This tool is perfect for you. It can collect data such as keywords used or online shopper’s clicking behavior.

IBM (Coremetrics)

Can’t go wrong with IBM. This one helps you with tracking consumer’s browsing history and provide product suggestions. One of the best parts of this tool is that it’s very adaptive. You can use it on tablets, desktops, and other mobile devices.

CommerceStack

This tool works if you’re running an online store on Magento. The Related Products Manager feature accumulates online shopper’s data to suggest other related products or cross-sell or upsell.

Facebook Pixel

Scrolling through your Facebook or Instagram, you’ll always see ads that are tailored to you. It’s because we share personal data, opinions, and other interests. Their analytics tool lets you quantify your targeted ad’s effectiveness or guarantees they are seen by the right audience. 

Google Tag Manager

This tool provides you a code snippet to add to a website and connect with Google analytics. It helps brands target users who visited their sites or consumers who are researching a product or service on Google, YouTube, or other websites.

Looking to incorporate behavioral advertising into your marketing strategy? Give us a call or send us a message. We provide consultation services to provide information that enriches you and your business.

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