You know who your best audience is. You've done the market
research and compiled mass amounts of analytics on past campaigns
telling you exactly what segments of the consumer population are
most likely to become your customers. Now, how do you reach
There are a number of popular audience targeting methods used
for Internet marketing campaigns. Many advertisers are confused as
to which ones to leverage and at what cost? For SEM or paid search,
the targeting has historically been keyword and inventory based,
perhaps with a frosting of geo-targeting on top. But what about
display? Is the targeting being left in the hands of the Ad servers
or exchange networks?
The Digital Advertising Big Picture
Digital advertising has been on the rise. It's not stopping,
either. In the US, Forrester predicts that display advertising will
grow from $8.4 billion at year-end
to $17 billion
in 2014. Online display advertising is growing and
changing so quickly, audience targeting is more complex than ever.
There are also more Internet users than ever, so how do you talk to
the right ones at the right time and most importantly, the right
price? Let's look at the top three categories of targeting being
used today and the success rates of each.
- Standard Targeting - This category is for the
highest level and most simplistic targeting methods that are almost
always used in any Internet marketing campaign. These include
location (geographic, time of day, languages), demographic (gender,
age, economic spectrum, household income), technographic (browsers,
operating systems, connection speeds, and screen resolutions), and
inventory (Web sites, publishers, categories, and channels).
- Behavioral Targeting - The level of complexity
here can be infinite. Advertisers can build custom behavioral
targeting segments with multiple data points to configure an
accurate behavioral profile. Behavioral targeting can yield high
conversion rates when used properly. The important fact to consider
is the more complex your BT segments, the less inventory available.
As you limit your target audience, you also limit the range of
inventory available for those select users.
- Retargeting - Retargeting (also called
remarketing) involves placing a Beacon on a page to collect data on
site visitors, tracking their behavior (such as uncompleted
purchases), then serving ads to those visitors related to the same
product or service. The conversion rate is often highest on
retargeting tactics over any other targeting tactic because the
audience has already demonstrated a certain level of interest by
visiting the site.
All About the User Experience
In addition to boosting performance, a primary reason to execute a
well-planned targeting strategy on your Internet Marketing
campaigns is to deliver a better user experience for your prospects
and customers. When you target specific audiences you can create
relevant messages specifically for them. The more relevant your
message, the more useful it is for the consumer. The ability to
deliver relevant messages to different types of consumers is
arguably the most important function of targeting.
But what about the bottom line? Of course, performance is also
paramount. In part two of this blog series, we'll discuss how
to enhance targeting and boost performance.