Today I want to share a marketing service provided by advertising company. It is called behavioral retargeting. It is a form of online targeted advertising by which online advertising is delivered to consumers based on previous Internet actions that did not result in a conversion. Basically it uses computing technology to track consumer’s viewing history, once a page or an item is clicked but not converted into a transaction, the advertiser will keep the record and put the exact same thing on the online advertising section when the consumer enters related websites.
I think retargeting is interesting and I have been noticing such retargeting online advertisement appearing on some of my favorite websites. The most obvious example is Google’s online advertising program called Google AdWords, which they call it remarketing. Despite the potential privacy issue, advertisers find retargeting very efficient and profitable. Let ‘s look at advertising’s development history and compare retargeting with old advertising skills. The very first model of advertising does not target at any specific consumer, it just promotes at a large population in which the cost is very high and the conversion rate is disappointedly low. Later advertisers discover the importance of targeting consumer, so they start to present the advertisements selectively. How advertising company decides to put what type of advertising at what specific time period is all based on the relevance. For example, cars’ and beers’ ads are shown after sport games, toys’ ads after cartoons, and fast foods’ ads after dramas. This is based on the research result that most audiences are the main potential buyers of the products. Through advertising they are more likely to purchase the shown product in the future. However, the disadvantage is that the advertisers cannot assure if the consumer will make the purchasing decision in short term. Although the targeted audiences are the biggest group of potential buyers, perhaps most consumers will only have impressions about the advertisement without really purchasing it (situation varies depending on the durability of the product). On the other hand, retargeting is efficient because the advertising is designed to be delivered to consumers who are just at the shopping moment considering what to get. Under this condition the conversion rate is going to be higher than other advertising skills.
Retargeting is just at the beginning experimental period, but it is definitely the next trend of advertising. Currently it seems to be focusing on Internet-based advertising, while other market areas are still being covered. This means there are still a lot of opportunities for retargeting.
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