Statistically Proving Onsite Targeting Value

Josh GordonAs behavioral targeting continues to grow in both practice and popularity - both in onsite and network form - it is interesting to reflect on the fact that very little measurement has been done to provide statistical evidence of success. So, it is easy to see why today's eMarketer newsletter is getting some buzz. According to an NAI (Network Advertising Initiative) sponsored study the use of behavioral targeting in advertising doubles ad effectiveness. While the study is 100 percent focused on behavioral targeting in advertising - also known as network behavioral targeting - the successful results the study measured are easily translated over to onsite behavioral targeting.

According to the study, ads that used behavioral targeting technology to determine what content is shown to a specific individual garnered a conversion rate that netted out to 6.8 percent for the year 2009. In the advertising context in which this study was performed, it is easy to see how the CPM increased accordingly with the level of influence behavior had in deciding what ad content is shown. While we here at The Lunch Pail still firmly believe that the safest and best application of behavioral targeting is confined to targeting done on a specific Web site (thus the term “onsite targeting”), this empirical evidence does prove the value of behavior’s presence in triggering content. Therefore it is reasonable to assume that if ad conversions are at 6.8 percent for behaviorally targeted ads, dramatic improvements in the performance of behaviorally targeted onsite content will be similar.

It is quite evident that when behavior is used to determine content, marketers and advertisers win. As the first bits of behavioral targeting’s statistical value begin to emerge, marketers must see the incredible opportunity that exists for behavior-based content targeting beyond the confines of ad networks. Whether marketers are working to preserve a customer’s product loyalties with targeted content, or a more linear goal like increasing Web site conversions and sales, using behavior to target content to site visitors is a necessary foundation of any modern marketing strategy.

For context consider the first and most important principle contained in the New Marketer’s Constitution, as asserted by the Association of National Advertisers president and CEO Bob Liodice.

Principle #1: “Marketing must be increasingly targeted, focused, and personal.”

These elemental aspects of direct digital marketing are not just nice-to-have but absolutely necessary for effective email marketing and mobile marketing. The Web site, however, is the most direct channel for marketing a company has, and the same principle must apply. Onsite targeting is the most efficient method for applying the most important principle of modern marketing.

What ways can your website use onsite targeting so each visitor’s experience is as personal and relevant as possible?

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  1. Statistically Proving Onsite Targeting Value…

    It is quite evident that when behavior is used to determine content, marketers and advertisers win. As the first bits of behavioral targeting’s statistical value begin to emerge, marketers must see the incredible opportunity that exists for behavior-ba…

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