Targeting the correct customer base at the correct moment requires patience and it is also fundamentally crucial in digital marketing. Behavioral targeting converts this concept into an approach, allowing brands to provide highly tailored experiences by tracking user actions and interests. This page will outline how behavioral targeting operates and why it is a fundamental tool for marketers.
Behavioral targeting helps businesses show the right message to the right person. It uses information about what people do online to send adverts and offers that feel personal.
This article explains what behavioral targeting is, how it works, the types of targeting, and how companies can use it well. We will also look at privacy issues and best practices so you can use this method responsibly and effectively.
The easiest way to describe Behavioral Targeting is that it is a set of techniques that is gathered by analyzing user actions. For instance, your website interactions, purchases online, and browsing history, among many others, are used to deliver the most relevant marketing messages.
And on the other hand, this is very different from regular “contextual targeting,” which shows ads based only on what’s on the page you’re looking at, not on who you are or what you’ve done online.
The main objective of behavioral targeting is to make sure that it delivers more relevant ads to its major consumer base, also known as behavioral advertising.
And you must have seen how Advertisers and publishers also use the same to have personalized ad campaigns across multiple platforms like Google, TikTok, Facebook, etc. Let’s go through this example to understand the reference:
You can use data about customers interactions with your brand to:
This works as a prime example of how behavioral marketing ensures your campaigns are based on a solid understanding of how users interact with your brand, resulting in much better engagement.
You will have higher conversion rates, which will increase your revenue, and at the end of the day, a better customer experience.
Behavioral targeting follows a clear process to turn raw data into relevant ads. Read below to understand the key steps with simple explanations.
Data Collection: The First step towards Behavioural Targeting is Data Collection about user actions. The whole process of data collection is done by marketers, also known as Ads Optimization using cookies, analytics tools, and CRM systems, among other sources, which helps you to collect information on pages visited, products viewed, time spent on your site, and past purchases.
Additionally, Loyalty Location data and program records can also help form a complete picture of each user’s habits. And all is done as per user consent.
Behavioral Segmentation: The Second step after they collect the data is to sort users into segments based on shared behaviors. Let’s take an example to understand segment level testing.
GROUP A: People visited the site but never bought anything.
Now GROUP B: these are the set of people who are genuine and frequent buyers who also respond well to discount offers.
This Segmentation helps you to separate registered users from unregistered visitors.
Some platforms offer real-time audience building so segments update automatically as new data arrives.
Ad Targeting & Delivery: After Segmentation, it becomes necessary to separate the user base through Ads Optimization. Advertisers choose which ads to display to each group after users have been segmented. They place real-time bids for ad space using programmatic advertising platforms.
Almost immediately, the winning advertiser’s message appears on websites or applications. When a user searches for running shoes on an online store, for instance, they may see advertisements for similar shoes on other websites.
Optimization: After the advertisement is displayed, behavioral targeting continues. Marketers keep an eye on user reactions and modify campaigns to boost effectiveness.
To determine which version is most effective, they may experiment with various headlines, pictures, or offers. Machine learning tools can predict future actions and suggest the best time to show an ad or send an email. The McKinsey case study also found that AI-driven personalization can reduce acquisition costs by up to 50% and lift revenues by 5–15%.
Behavioral targeting can happen within a single site or across a network of sites.
On-site targeting focuses on users when they are on your website or app.
It analyzes which pages they visit, how long they stay, and what they add to their cart.
Based on these actions, the site might show personalized product recommendations or pop-up offers.
Network targeting uses data shared across multiple websites or apps.
By using identifiers like cookies or device IDs, advertisers can follow a user’s journey across the web.
People often browse on multiple devices before making a purchase.
Cross-device targeting links a user’s behavior across these devices to create a single profile.
Behavioral targeting uses a person’s past actions to decide which ads to show. Contextual targeting matches ads to the content of the page being viewed. Many marketers now use both methods together. With cookie changes, contextual targeting is becoming more popular again.
For Marketers: Higher engagement, better ROI, stronger relationships, and valuable insights.
For Consumers: More relevant ads, better shopping experiences, and timely reminders.
Statistics show:
Privacy issues are brought up by behavioral targeting. Regulations such as the CCPA and GDPR establish guidelines for the gathering and use of personal data.
Marketers are being forced to rely on first-party data as third-party cookies are being phased out. Approximately 60% of customers don’t trust companies with their personal information. Maintaining trust requires openness and explicit consent.
Yes, if you follow privacy laws and get consent.
Yes, by using first-party data and contextual signals.
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