Behavioral Targeting

At a very high level, behavioral targeting occurs any time an ad is logically displayed based on information about the Web site visitor. The logic is derived from cookie data, such as Web site visit history or terms used in past Web searches. In plain English, this means that ads about dog food are only shown to Web site users who have recently visited a site containing content about dogs (like www.dogster.com) or searched on the term ‘new puppy’ using Google or Yahoo. Ads are automatically displayed to users who are already inclined to be interested in a product or service – effectively targeting a specific online audience and maximizing advertising spend.

Now let’s take behavioral targeting one step further.

Imagine that the Web site user is shown the ad about dog food, visits the manufacturer’s Web site, but does not download a coupon or perform a store locator search. With behavioral targeting, you can re-target that specific Web site user with more dog food ads after they visit the site, until they complete the desired online action – whether it be a coupon download or a store locator search. Again, re-targeting maximizes advertising budgets by directing ads towards users who already expressed interest in the product.

Contextual Targeting

Instead of targeting users, advertisers can also now target by the content that users view online. At the product level, one example of contextual targeting is when an advertiser for ice cream advertises next to a recipe using ice cream.

Another form of contextual advertising takes a product that isn’t related to the site content and make a connection between the product to the content through ad messaging and copy. Using this tactic, a hotel could advertise on a site dedicated to time-saving tips and tricks, by promoting ‘quick check-in without the hassles’ or another time-saving message.

Geo-Targeting

Finally, advertisers can also target specific geographic areas, sometimes even down to the zip code. Publishers determine the location of Web site users by IP address and can serve specific messages to specific locations, or even deliver ads only to one geographic location. Geo-targeting is especially effective for local advertising efforts.

Moving Forward

Through different targeting options, banner advertising opportunities have significantly improved over the past few years, offering ways to efficiently maximize budget for advertisers. Newer tactics involving video, even social media, continue to expand display advertising capabilities. Like any online advertising efforts, time should always be spent defining underlying business goals, defining strategy, and determining which display advertising tactics will best align with your desired end result.