An introduction to behavioural targetingGuy Phillipson17 January 2006

A pithy analogy…

Your prospective customer received an application form by direct mail. She’s filled in 80% of it and left it unsigned on the kitchen table.

Imagine if you knew that and, as if by magic, could make her pick it up, complete it and post it?

There are a variety of online advertising techniques to help you compete for consumer attention

Tools to stay top-of-mind

Behavioural Marketing

Target in-market consumers and

remarket to create a

sustained marketing effort

Lead Generation

Use your own site or 3rd party

partners to collect leads for communicating

product info

Awareness Building

Create high impact, high

reach campaigns and use rich

media such as Video

IMPACT DIALOGUE INFLUENCE

Clever cookies

• Cookies (1 x1 pixels) allow us to follow audience behaviour and re-target customers with relevant offers online.

• Often used for finance, travel, autos and other long purchase cycle categories.

• Behavioral targeting delivers a pre-qualified audience and, usually, much higher conversion

Major advertisers recognise the importance of talking to consumers

throughout their entire web experience

Spend on behavioural is rising rapidly

$285

$648

$925

$1,200

$1,500

$2,100

2003

2004

2005

2006

2007

2008

Source: eMarketer, April 2006

Behaviour Targeted Online Ad Spend, US $(Millions)

Targeting can be tailored based on consumer behaviour and campaign objectives

Types of Behavioural Targeting

Types of Targeting

Target Audience

Defining Behaviour

Campaign Goal

Source: JupiterResearch, June 2006

ContentIndividual displaying affinity for specific

content themes

Frequent or recent visits to interest-

based contentBranding

Purchase Intent

Individual researching product

or service

Frequent or recent visits to vendor sites

Increasing conversion

Customers who visit travel-related sites are identified as “in-market” and shown your ad as they continue their journey online

Content Behavioural Marketing

User

Internet

Customers who visited your site (from anywhere) can be retargeted to ensure your message is sustained, leading them back to your site

Purchase Intent Behavioural Marketing

Behavioural

Network

It’s easy to measure success

• Simple to measure conversion percentage…

• …and compare to performance of non-behavioural inventory

Source: Advertising.com 2006

C onvers ion R ateAll Vertic als

Without B ehavioural With B ehavioural

3 times as effective

Where’s it going

ipTV• Targeted TV

ads according to viewing behaviour

Where’s it going?

Sky+• The latest Sky+ boxes

are equipped with separate hard drive ready to learn your viewing and serve pre-selected TV advertisements

But behavioural targeting online is here right now…