Tuesday, March 18, 2008

Behavioral Based Target Ads over NeT

Behavioral Targeting and Contextual Advertising

Is online advertising undergoing a “rebirth”? Some might argue it is, first spurred on by paid search advertising then by contextual and adware placements. Now there is another “new” game in town, if the buzz-o-meter is any indication. While not altogether new, behavioral advertising is getting more play than ever, perhaps because it’s now being married with every marketer’s favorite word: targeting.

Is behavioral targeting really all that? Let’s take a closer look.

The Process

One basic premise in marketing is that to more effectively sell your product or service, you should understand how your customers’ minds work. What do they like to see? What do they want to hear? What do they like to do? And can you determine these things with as little time and money as possible? Now there technologies that *can* easily establish these answers quickly and effectively to give you an at-a-glance picture of behavioral targeting to these consumers.

Behavioral targeting technologies work by anonymously monitoring and tracking the content read and sites visted by a designated unique user or IP as that user surfs the Internet. This is done by serving tracking codes, which are implemented as cookies, on a user’s computer as s/he is served ads from various online advertising networks. Sites visited, content viewed, and length of visit are then all databased and analyzed to predict an online behavioral pattern for such a user, thereby classifying that user by his/her online demographic. Behavioral ad networks then serve targeted advertising related to that user’s behavioral classification, regardless of where s/he then visit.

For example, if a computer user frequents sites such as SlashDot, Maxim Online, Wired, and Men’s Health, behavioral targeting would classify such a user as a male, with interest in technology. When behavioral targeting advertising companies such as Tacoda or 24/7 serves ads on such sites, their ads place behavior targeting cookies on the user’s computer. Then, if that same user later visits a site with ads served by these networks, an advertisement might be served for shaving cream or even a tech job site (especially if the user is reading the news online during regular work hours). If that user becomes target to a behavioral advertising, he may be served a series of the same ad campaign across various sites, all without his awareness of the targeting going on around him.

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