Often when considering digital targeting tactics for marketing your local business, you may immediately consider geographic, demographic, and contextual targeting. These methods help local advertisers to reach specific audiences by their location, their characteristics, and the content they interact with.
An additional targeting tactic you may want to consider is behavioral targeting.
Behavioral targeting can boost engagement, improve conversion rates, and foster stronger customer relationships by delivering personalized experiences based on online behavior. This approach can enhance advertising relevance leading to higher click-through rates and increased sales.
Behavioral targeting is a digital advertising and marketing tactic that uses online activity data, like browsing history and purchase patterns, to deliver personalized ads and content to users. It involves tracking and analyzing user behavior to tailor messages and offers based on the user’s specific interests and needs.
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Consider the hypothetical example of a local bakery here in the Monadnock Region running targeted ads on social media to people who have previously visited their website or interacted with their posts, suggesting they are interested in baked goods. The ads could promote special offers like a discount on their signature cake or a free pastry with a coffee purchase.
Another example might be a local food delivery service leveraging data to personalize their recommendations and promotions. They could track customer order history, including frequently ordered items, dietary restrictions, and preferred cuisine types. Based on this data they could offer personalized recommendations to new and returning customers, as well as targeted promotions based on individual preferences and purchase behavior.
So how does all this work?
Behavioral targeting works by collecting and analyzing data on user online behavior like browsing history and purchase patterns, to deliver personalized ads and content. This involves using various methods including cookies, tracking pixels, and machine learning to understand user preferences and predict their future actions. Marketers can then use this data to create targeted ad campaigns and personalize the user’s experience.
The process includes the following steps:
Data Collection: The data collection component of behavioral targeting involves gathering information about user’s online actions across various platforms. This data includes browsing history, search queries, social media engagement, purchase behavior, and more. Your local business can use this data to understand user interests, build profiles, and deliver targeted advertising.
Data Analysis: The data analysis component of behavioral targeting involves analyzing the gathered data to understand user’s online behavior and preferences. This analysis includes pattern recognition to identify common trends and patterns to create profiles and segments; predictive modeling utilizing machine learning algorithms to predict future user behavior based on those past actions; and real-time analysis tracking user behavior and adjusting ad campaigns accordingly toward optimization.
Targeted Ad Delivery: Based on this analysis, you can deliver targeted and personalized advertising and content to create a personalized and highly relevant ad experience.
Behavioral targeting can be used on various digital platforms, including social media sites like Facebook and Instagram, search engines like Google, e-commerce platforms like Amazon, and e-mail marketing services.
As well, behavioral targeting can be effectively combined with several other targeting tactics to create a more comprehensive and precise approach to reaching your target audience. Combining behavioral targeting with contextual targeting, demographic targeting, geotargeting, and retargeting can significantly enhance your campaign performance.
Behavioral targeting is highly effective in boosting marketing campaign performance including sales growth and campaign ROI. Studies show significant improvements in click-through rates (CTRs), open rates, and conversion rates.
- Klaviyo highlights that behavioral targeting helps make marketing spend more efficient and effective by focusing on the right audience with relevant content leading to higher engagement as users are more likely to interact with personalized experiences that resonate with their interests and needs.
- McKinsey & Company research indicates that organizations using behavioral insights achieve 85% higher sales growth and more than 25% higher gross margins compared to their peers.
- A Marketo study indicates a 56% increase in open rates and a 147% increase in CTRs when using interest-based marketing.
If you’d like to learn more about behavioral targeting and how to improve the relevance and effectiveness of your marketing strategy, please give us a call or email us here at Sentinel Solutions.
We are experts in these tactics and can assist you in incorporating them effectively into your marketing plan. We can help you build compelling campaigns that engage your audience and drives sales.
Give us a call if we can help at 603-352-5896 or e-mail to Advertising@SentinelDigitalSolutions.com. We’re here to help you succeed.
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