Targeting Methods in Online Advertising

Selecting the right audience is the key driving factor in online advertising – your marketing campaigns’ performance depends on it almost 90 percent. With numerous tracking systems for monitoring users behaviors online, their ways to interact, their purchase habits, there are a number of targeting variables available to modern marketers. What is a well-targeted advertising? It is more relevant, compelling and subtle. What are the tools we have these days? According to the Advertising Research Foundation in its latest publication titled as The Online Advertising Playbook , there 7 highly usable methods:

Demographic Targeting – the old and familiar approach that defines audiences by gender, age, occupation, household size. It will always be there due to its advantages for broader product categories. It is easy to project behavior for such products based on demographic information and it costs less than tracking individual purchase behavior. More on the tips for successful demographic targeting, read the article on iMedia Connection.

Contextual Targeting – implies placing ads on sites that are related in content to the products, as an example: diet programs ads show up on healthy living related sites, financial products ads are displayed on money and investment sites. Contextual placements catch shoppers at the time when they are thinking about the product or related to it issues, catch up on news or read up on tips.  Due to the fact that shoppers (potential and actual) are caught in the active state – it becomes quite important to select quality sites, with relevant and most popular content to make your campaigns perform.  Site credibility is also important for the product especially when sales occur offline. Thus, it is a key consideration for your branding efforts.  Also, if you are tasked with building a community around your product, having a group of high regarded sites extends your influence further with the already highly engaged audience.  More on the contextual targeting, check this blog post that cites the research study on its effectiveness.

Behavioral Targeting – is the hottest method these days and the most controversial, allows marketers to track users’ site “hopping” through the cookies and come up with models and behavioral patterns for targeting those users later on those sites. Advertisers use these models to serve ads that are relevant to those “mapped” individuals across the various sites. It could be cheaper to do behavioral targeting than a contextual one: you have more points to reach the same audience. At the same time, it has its pitfalls and Jack Jia covers them well in his recent article.

Geographic Targeting – is especially powerful for smaller businesses that would like to capitalize on the local searches for products and services. DMA areas, area codes, time zones, GPS coordinates and IP protocols provide some geo targeting capability and allow marketers maximize the reach.  In addition, it can always bring additional sales to the brick-and-mortar store if you send your shoppers to the nearest location to pick up the purchase. More on the ways you can leverage geo information, read this blog post by Charles Thrasher.

Daypart Targeting – comes back to online advertising from the more traditional media (TV, radio) where it reaches specific audiences. Daypart targeting varies by audience size and specifications, can be very cost-efficient – as you expose your message to the largest audiences at the right time when they want to hear, see, view your message. Internet is used differently throughout the day with the highest percentage of people shopping and surfing the web during the normal business hours at work! According to emarketer, 31% people shop online at work, and if you add more detailed data on at which hours exactly they heavily engage into it – you are in business!

Affinity Targeting – refers to reaching customers on their favorite sites (usually related to hobbies and interests) that they heavily visit and interact with. Those users spend more time online (on those sites), are more favorable to the site content and ads and purchase faster and easier. If you like one site that you visit daily, you are more open to digest the message in the ads and in fact act on it. Works every time.  Affinity targeting especially works for brand evangelism.

Purchase-Based Category Targeting – represents a new method of merging data from the online behavior database to the purchases. It is very efficient, but very costly since you do have to customize the databases for your specific markets.  Companies like Nielsen try to create profiles of the “heavy shaving cream users” and low-carb dinners buyers” and map it against their online surfing patterns and predict their next purchase across product categories.

With all those methods, marketers are indeed empowered to deliver the right message at the right time to the right audience, even when the data is not perfect. Select 2-3 methods that fit your business and marketing strategy and find the good enough fits for your audiences and you are bound to have success.