What is behavioral retargeting?
Behavioral retargeting, also known as behavioral remarketing, is a form of online targeted advertising. It is a marketing strategy that involves tracking users’ online activities and serving them ads based on their behavior. This technique is used by businesses to reach users who have previously visited their website or used their app but did not make a purchase or complete a desired action.
Behavioral retargeting is a powerful tool in the digital marketing arsenal. It allows businesses to stay connected with their audience, reminding them of their interest in the brand’s products or services, and encouraging them to return to the website to complete a transaction. This method of advertising is highly effective as it targets users who have already shown an interest in the brand, making them more likely to convert.
How Behavioral Retargeting Works
Behavioral retargeting works by placing a small piece of code, often referred to as a pixel, on your website. This code is unnoticeable to your site visitors and does not affect your site’s performance. When a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the web, the cookie lets your retargeting provider know when to serve ads, ensuring that your ads are served to only people who have previously visited your site.
Retargeting is a cookie-based technology that uses simple Javascript code to anonymously follow your audience all over the Web. It is different from traditional display advertising which relies on a user’s search history or browsing behavior on a single website. Retargeting serves ads to users based on their interactions with your website, making the ads more relevant and personalized.
Types of Behavioral Retargeting
There are two main types of behavioral retargeting: pixel-based and list-based. Pixel-based retargeting is the most common type and works by using cookies to track users’ online activities. When a user visits a website, a cookie is placed on their browser. This cookie then informs the retargeting platform to serve specific ads based on the pages that the user visited on the website.
List-based retargeting, on the other hand, works by using a list of email addresses. The retargeting platform uses this list to serve ads to the users associated with these email addresses. This type of retargeting is less common as it requires the advertiser to have access to a user’s email address, which is not always possible or ethical.
Benefits of Behavioral Retargeting
Behavioral retargeting offers several benefits to businesses. Firstly, it increases brand awareness. By serving ads to users who have already visited your website, you keep your brand at the top of their mind. This increases the chances of them returning to your website and making a purchase.
Secondly, behavioral retargeting increases conversion rates. Since the ads are served to users who have already shown an interest in your products or services, they are more likely to convert. In fact, users who are retargeted with display ads are 70% more likely to convert on your website.
Challenges and Limitations of Behavioral Retargeting
While behavioral retargeting offers several benefits, it also has its challenges and limitations. One of the main challenges is privacy concerns. With increasing scrutiny on data privacy and the use of cookies, businesses need to ensure that they are compliant with privacy laws and regulations when using behavioral retargeting.
Another challenge is ad fatigue. If users see the same ad too many times, they may become annoyed and develop a negative perception of your brand. It’s important to regularly refresh your ad creatives and offer different types of content to keep your audience engaged.
Best Practices for Behavioral Retargeting
There are several best practices that businesses can follow to make the most of their behavioral retargeting efforts. Firstly, segment your audience. Not all users are the same, and they should not all be served the same ads. Segment your audience based on their behavior on your website and serve them ads that are relevant to their interests.
Secondly, use frequency capping. This involves limiting the number of times a specific user sees your ad. This can help prevent ad fatigue and keep your audience engaged. Lastly, test and optimize your ads. Regularly test different ad creatives, messages, and calls to action to see what works best and optimize your ads based on these insights.
Future of Behavioral Retargeting
The future of behavioral retargeting is likely to be shaped by advancements in technology and changes in privacy regulations. With the rise of artificial intelligence and machine learning, businesses will be able to use these technologies to better understand their audience and serve them more personalized and relevant ads.
However, changes in privacy regulations and the increasing use of ad blockers may pose challenges to behavioral retargeting. Businesses will need to find ways to balance personalization and privacy, and find new ways to reach their audience in a privacy-compliant manner.
Conclusion
Behavioral retargeting is a powerful marketing tool that allows businesses to stay connected with their audience and increase conversion rates. However, like any marketing strategy, it requires careful planning and execution. By understanding how behavioral retargeting works, its benefits and challenges, and best practices, businesses can effectively use this strategy to reach their marketing goals.
As the digital landscape continues to evolve, businesses need to stay ahead of the curve and adapt their marketing strategies accordingly. Behavioral retargeting, with its ability to deliver personalized and relevant ads, will continue to be a valuable tool in the digital marketer’s arsenal.
