How do you define behavioral marketing?
That’s a simple question, which often garners a not so simple answer. In theory, behavioral targeting is the ability to serve ads to consumers based on their recent web usage, which includes what they’ve looked at, search for and/or clicked on.
Which clients have done behavioral? What types of campaigns have worked (remarketing, audience targeting, customer acquisition, cross-promotion, loyalty ad increasing lifetime value, etc)?
Almost all our clients at Euro RSCG 4D have used behavioral targeting at some point. Campaign objectives have ranged from building awareness to influencing purchase intent. In order to meet these objectives, we’ve primarily used remarketing and audient targeting (based on behaviors we’ve prequalified).
Are certain advertiser types better suited for behavioral? Which ones and why?
Almost all advertisers can utilize behavioral targeting with success; however, the method will depend upon the advertisers objectives. For example, a direct response advertiser will have a different combination of attributes than an advertiser looking to build brand awareness. Ultimately, a successful behavioral targeting campaign will rely on the right combination of frequency, timing, creative and behaviors.
What's your typical buying model (CPM, CPC, CPA)?
We typically buy on a CPM basis and on occasion will buy CPA. When we buy CPA we usually have to relinquish some control as to where our ads will appear.
What has worked? Why?
Our successful campaigns have been a combination of many variables and many different groups – media, creative, client and publisher – working in tandem.
What has failed? Why?
Campaigns that work in isolation will 9 out of 10 times fail. Behavioral targeting is not a tactic, but a strategy and it relies on intelligence from many different parties. One way to tell if a behavioral targeted campaign is doomed is to ask the creative department if they were aware that their creative is running in such a way. If the answer is “No,” then advertisers are better of focusing their dollars on contextual targeting while an appropriate creative strategy is developed.
Which types work best (customer acquisition, loyalty marketing, reminder marketing, etc)?
I may be biased, but I believe that behavioral targeting -- if done well-- can support various types of marketing goals. Currently, direct response initiatives, which have quantifiable metrics, tend to lead in utilizing behavioral targeting. Advertisers can remarket to someone who is in-market with special offers and incentives. However, we're starting to see an increase in brand advertisers using behavioral targeting as well. Brand tracking studies are showing favorable results for behavioral targeting influencing awareness and persuasion, which are two primary goals for advertisers with long-term, higher consideration products.
Who in your mind are the top-three behavioral marketing partners and what makes them the best of the bunch?
When I think of behavioral marketing the top three that come to mind are Revenue Science, Tacoda and Yahoo. These are the pioneers of behavioral targeting and continue to lead the space.
What are the key obstacles towards more advertisers adopting behavioral marketing as a tactic?
There are two major obstacles. The first is the lack of best practices. Advertisers have been hearing about behavioral targeting for years, but still do not have a clear understanding of what works. And second is the lack of standards. The definition of behavioral targeting will sway depending on who is offering it. In many cases, behavioral targeting is no more than a fancy way for some sellers to describe contextual targeting.
How do you feel about the privacy complaints surrounding behavioral marketing? How do we resolve them?
We first need to explore the root of privacy concerns, which stem from a mismanagement of consumer data and poor messaging. It is not okay to play Big Brother with behavioral targeting, however, it is okay to serve relevant advertising in a respectful manner to consumers. Consumers get it. In order to receive free content, sites will serve them ads. Therefore, given the choice of what to look at, consumers prefer to look at relevant messaging. Relevant messaging is based on what a consumer (as a abstract) does online. Once the messaging gets personal (e.g., using the consumer’s name in the messaging), that’s when privacy issues flare up. Therefore, the way to resolve these issues is for advertisers to partner with reputable vendors and to mindful of the methodology and messaging they are pushing.
Is it ok for advertisers to append demographic data to behavioral cookie data (and vice versa)?
As long as no one’s personally identifiable information is revealed and the message is relevant and mindful of the consumer.
What do you think are the major industry challenges with behavioral targeting? I believe the major challenges are as follows: a) lack of best practices; b) lack of standards; c) lack of coordination between all parties; b) lack of understanding among everyone (advertisers and consumers included).
How do you see behavioral targeting playing out in video in the next 12 months? The theory won’t change, but video offers advertisers another vehicle in which to apply behavioral targeting. For example, a consumer who frequently watches a specific Italian cooking show online may later see an ad for a pasta advertiser when they’re checking their email.
Anna Papadopoulos
Based in New York, Anna Papadopoulos is the interactive media director for Euro RSCG 4D, which handles media for such clients as Volvo Cars of North America, New Balance, OppenheimerFunds, and others.
An advocate for creative media thinking, Anna has been a part of several industry firsts, including the first fully integrated campaign and podcast for Volvo. Before joining Euro RSCG seven years ago, Anna was a media negotiator for TBS Media Management, where she bought media for such clients as CVS and RadioShack. Anna earned her bachelor's degree in journalism from St. John's University in New York.
Noah Robinson
Noah Robinson is the CEO of Machina, home of Audience Marketplace, a transparent behavioral ad exchange. Previously, Noah was the VP, Business Development at Glispa, the Director of Business Development of Gratis Internet, and a Co-Founder of Beyond Interactive Sao Paulo. He serves as a contributing editor at Behavioral Marketing Daily.
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