Targeting Methods in Online Advertising

Filed Under Online Marketing, Digital Marketing, Online Advertising | 1 Comment

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.

Online Lifestyles Are a Norm? Yes, They Are!

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December is always a special month for me as it is a time when all the checks and balances occur, when all the moments of the year are revisited in memory again - relived, pondered upon and signed off as lessons and discoveries. It is also a time for predictions, wish lists and anticipation! So with the respect to my passion for marketing, I am contemplating on the passing year with a reflection on online lifestyles or call it digital lifestyles that became a norm. Little by little, our activities move online: online shopping, online banking, online dating, online networking, online socializing!

According to the Stanford University study on Internet Usage Report, published in internet stats, “the longer people have been web users the more hours and the more activities they report engaging in. While self-selection may be playing a role with early adopters, the data strongly suggests a model of social change with not only a growing number of Internet users, but with web users doing more and more things on the internet in the future.” Though, I am not sure about the number of respondents and who they were, since according to the chart -if you have been online for 5 years, your average usage hours per week can be close to 9. Well, I totally can see myself spending 30 hours per week, excluding business hours, though I discovered internet in 2000 only (yes, I know it is late, but try to keep me from it now!)

Paid search is getting on the top hot list and though it is not a new way to reach our customers, it is the most profitable and on the target! Why not to love it? You pay for actions, purchases or performance. Besides it is so interwoven into everyday’s consumer behavior – no wonder it works! If I think about all the new things I want to buy, learn and get to know – what do I do? – I go online and search. And if before I was only paying attention to unsponsored results, now if it comes to the specialized services in the area– I prefer paid links. My rationale comes from the following – those folks might be mature and sophisticated enough to advertise online, thus the service /or business they are in – is taken seriously. What did people do before search engines? Yellow pages…did work well then with the phones. Now, we want to do everything online – as the majority of us is there 24/7.

Peer reviews, consumer reviews and any bad experiences – I look for those as well before I buy. This brings us to the second nominee on the list – social networks where people interact and recommend stuff. Social networking became so everyday-vital – almost like email. And even though for online and “everything internet” skeptics it =(being online 24/7) might seem too over the board or a sign of no life (remember, second life – no life cartoon?) – Online lifestyle is a norm. On the contrary, the majority of people on social networks are the most extraverted –social folks that stay in touch with far more people at a time than one could imagine long time ago before internet. It is also a great opportunity for the introverted to express more, to share more and to be surrounded with the personalized attention without the overbearing voice of extraverts! And thus, with the increase of time we spend in our networks, with the ease we express our wishes, share the knowledge - we bring our lives online and plant very obvious patterns of our daily consumption. What are the greatest opportunities are those for online advertisers! They can cater to us personally – with all the data that has been collected about our daily habitual interactions.

Rich media would be the third favorite of mine – acquiring hearts, eyeballs and attention span of millions of people. Sharing videos, audio files and such became so easy and fun. You can become a TV star, a radio star and an international celebrity thanks to all the rich media capabilities internet offers.

With that, I wish you all Happy Holidays (be that Christmas, New Year, Kwanzaa, Hanukkah or Eid-al-Adha) and more fulfilling online experiences in your digital lives!

The Future of E-Commerce According to the Experts

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Day One of the Online Market World Conference was opened up with a starter session that covered the upcoming trends in the e-commerce industry. I thought it was rather “short and sweet” in content and delivered a good overview that is worth sharing. According to Joe Chung (Allurent), Doug Mack (Adobe) and Michael Hines (Jones Apparel Group) there are a number of trends in the evolving e-business:

1) Rich media meets rich applications - the user experience becomes very engaging, interactive and “seamless” thanks to the latest and greatest in the web development apps that leverage the graphic user interface. Examples include Gucci watch and Teamwork Athletic Apparel sites that bring authentic interactive brand experiences right at your computer.
2) Increasing community involvement - plays a major role in creating relationships, brand recognition and promotion from the mere transactions. If they (transactions) were good, easy experiences - they become stories that people pass along and eventually translate into more revenue.
3) Back to the desktop - lots of $$ is invested into the desktop shopping platforms, “browser-free” online shopping - imagine that!
4) Content as the Interface - plays a great role in the new way e-commerce sites get content and “inventory” - see Zillow’s site where users can post their house info (pictures, videos, etc) on sale in 60 seconds and watch the bids come.
5) Online shopping to be successful must be: enticing + engaging + executional + pervasive + mobile.

It is interesting to see how the same principles and concepts are applied throughout various industries and disciplines: I see the basics of the social media concepts, user experience design, permission marketing, branding and CRM - all work in tandem to accomplish a simple goal. You hear all the time the same fundamentals: ease of use, emotion, relevance, experience, engagement = all in various combinations bring you to success, as they are the same needs expressed by the sophisticated consumer, online shopper, primarily the US-based individual. As Joe Chung says, “extensive increases in the software development are very well offset by increasing customer expectations”, - so viva the online shopper - as there will always be plenty of work for all of us in web applications and services development as well as online marketing!

Come to Portland to Attend InVerge 2007 - The 1st Interactive Convergence Conference

Filed Under Conference, Interactive Marketing, Digital Marketing | Leave a Comment

Inverge 2007? Portland, OR? Next week, Thursday and Friday of September 6-7, a new conference is launched by one of the internet industry evangelists - Steve Gehlen. Inspired by the ideas of Convergence Culture and Wikinomics, “Inverge”, “invergence” is a newly coined term that took its roots from the concept of convergence of digital marketing and human interaction. In other words, it represents “interactive convergence”, thus “invergence”.

Why attend InVerge 2007? Inverge 2007 is a multi-disciplinary interactive marketing conference, happening in the Pearl District of Portland, OR (which has the best restaurants in the city on every corner, charming with its urban style and bringing lively crowds of urban professionals to mingle). Join your fellow marketers and advertisers for a 2 day experience of sharing ideas and expertise. Check the list of the attendees and plan your networking opportunities. Review the event schedule and choose the topics you would like to brush up on. Browse through the speakers bios and see who you would like to connect to.

Myself, I think I would definitely check out the panel on a new Nike ZOOM footwear interactive television campaign featuring panelists from Nike, Wieden+Kennedy and Ensequence with Stephanie Otto moderating the session.

The main presenters featured:
- Joshua Green, Research Manager, Convergence Culture Consortium, MIT talking about Convergence Culture and New Media Logics
- Jeff Yapp, Executive Vice President, MTV Networks
- Chris Van Dyke, President & CEO, Nau (see recent Fast Company feature) highlighting his groundbreaking “webfront” concept that integrates the best of e-commerce with traditional bricks and mortar shopping and Nau’s digitally centric approach to storytelling and brand building.
- Slate Olson, Senior Brand Connections Manager, Nike
- Renny Gleeson, Global Director of Digital Strategies, Wieden+Kennedy
- Lori H. Schwartz, SVP & Director, Interpublic Emerging Media Lab, Interpublic Group
- Catherine Ogilvie, EVP & General Manager of the San Francisco Office, Edelman sharing her insights on brand development and who actually does contribute to its value
- Stephanie Otto, CEO / Principal, Brainstorm Communications, Inc. (interactive TV pioneer)
- Dalen Harrison, CEO, Ensequence (interactive TV platform) talking about interactive TV and its future
- Adam Richardson, Strategy Director, frog design sharing his insights on product management and its shaping into managing complex systems
- Ken Papagan, President & Chief Strategy Officer, Rentrak talking about the need for behavioral measurement of media consumption by platform
- Jason Stoddard (Managing Partner) and Ken Brady (VP, Asia), Centric, Agency of Change
- Marcelino Alvarez, Senior Interactive Producer, Wieden+Kennedy (panel)
- Bill Barnett, General Manager, Entertainment Media Works expressing his insights on how to squeeze your advertising budget
- Mark Deuze, Professor, Journalism and New Media, Leiden University (The Netherlands) sharing his thoughts on consumer generated media
- Aimee Viles, Director of Creative Services, Ensequence (panel)

The best part - the conference was timed to coincide with a number of cultural events happening in Portland during the same week to make it a fully enjoyable experience of professional networking and cultural exploration. A paid Full Conference Pass to Inverge 2007 provides you with a full access to MusicFestNW and vouchers to 3 Time-Based Art Festival events, while the First Thursday Gallery Walk is complimentary already!

To register, visit InVerge 2007 site. Have Fun! I know I will.

    Content Disclaimer

      Everything posted on this blog is a product of my own thoughts, ideas, reflections based on the professional interests. It is based on the public information, works of the colleagues and fellow researchers that are cited respectfully and my opinions as an industry professional.