09 February 2010

Behavioural Targeting - Should it Be Common Practise

The accelerated adoption of the World Wide Web has seen advertising investment migrating from traditional media to online media. Planning online campaigns can be as simple or complex as the media planner, strategist, or marketer chooses.


A simple, but inelegant, solution may be to purchase 100 000 impressions on a site and hope for the best. What constitutes ‘best’ in this scenario? ‘Best’ hopes your impressions are served to your ideal audience – which requires that the “right” audience is clicking on your ad and being directed to your own website. The best, also being that at the end of the campaign you get a report saying that instead of the 100 000 impressions as contracted, the site drew an additional 25 000 click-throughs resulting in more exposure. However, the click-through rate from your online advertisement to your own website is only 0.25. The standard response from the online advertising website owner is that this is within the norm for websites. Anything above 0.25 is excellent. In traditional media planning this represents a typical ‘hope for the best’, shotgun approach.

How to refine the wild discharge from the barrels of a shotgun into a tightly-niched, pin-pointed telescopic rifle, high return on investment, campaign is the burning question.

Online advertising has advanced to the point where an astute advertiser may apply his mind in selecting the media he purchases. More and more websites and search engines charge advertisers only for ads a customer clicks on. The ad is served without charge, unless the customer physically clicks on it. Seemingly initiated, certainly perfected, by GOOGLE, it is the preferred method – saying “we have confidence in our site and our quality audience”.

The how? How do we find quality audiences?

Not all online advertising opportunities offer Cost per Click or Behavioural Targeting. One may assume they are concerned about the numbers of impressions given away and most likely do not have the ability to track consumer behaviour on their site. So what is Behavioural Targeting and why is it important that South Africa moves into a concentrated digital marketing communication era?

Behavioural Targeting uses information collected on an individual's web-browsing behaviour, such as the pages they have visited or the searches they have made. This assists in delivering online advertisements and content to those users most likely to be interested.

In addition, the owner of the site can recommend on issues such as ‘most’ other users viewing the particular product also looked at … and list accessories, services aligned to the product thus reassuring the viewer and positioning him directly into a collective of probable buyers.

It can be used on its own or in conjunction with other forms of targeting based on factors such as geography, demographics or the surrounding content.

Behavioural Targeting allows site owners to display content more relevant to the interests of the individual viewing the page. My pet hate is still being served impressions for “1st Insurance for Women” Both the site and the advertiser got it wrong in this case.

In essence, Behavioural Targeting allows media buyers, marketers, and online stores to selectively target the most desired consumer and to offer a range of product and accessories attractive to the consumer, but retaining behind the scenes, and readily available on the Mouse Button, the full range of offerings. Coupled with Cost Per Click we not only get the customer we want but only pay for customers choosing to browse our website. An immensely powerful combination that virtually eliminates wastage!

Google, Facebook, Yahoo are some of the major sites offering Behavioural Targeting. All also offer Cost Per Click campaigns. Despite that many online networks offer the facility across a number of different sites, however there are still too few to undertake major campaigns and advantage ourselves fully.

South Africa lags its American and European counterparts on Behavioural Targeting as we do not have the critical mass available. Major online groups such as 24.com and Primedia are well-positioned to champion Behavioural Targeting in South Africa. Their audience base includes general, business, women, teenagers, and men. It should be noted though that Sales Houses Apurimac and Habari do offer this service for some of the global sites that they manage.

From an advertiser’s perspective, Behavioural Targeting is a logical progression to pin point the target market for their products. The consumer perspective includes the imperative issue of privacy, a debate currently raging in the USA as Behavioural Targeting is in reality, a form of permission based marketing. Consumers accessing sites need to be informed that their behaviour on the site is tracked and content relevant to that behaviour offered to them.

Still Behavioural Targeting is a powerful media planning tool targeting the “right” customer and only paying for the media when the customer clicks on your ad thus minimizing wastage.