CRM - January 2008 - (Page 27)

BEHAVIORAL TARGETING Tools like cookies, however, have been subject to debate because of privacy concerns. To reassure wary marketers and their consumers, Howe explains that the concept of targeting “individuals” is actually a misnomer. Although behavioral targeting is significantly more relevant, it’s not quite the Big Brother consumers fear it is. Behaviors are entirely based on what is registered through the server and, at most, combined with household demographic information obtained through public records. Currently, Vanderhook says, “I could never make a [random] ad that says, ‘Name, click here for travel ads.’” But as databases get larger and more personal information is stored on the Web, security issues may become more of a concern, he says—perhaps leading regulators to try to restrict the industry in the name of individual privacy. Draconian reforms could hamstring behavioral efforts and innovations. Another pitfall of targeting based on IP information is the discrepancy of shared computers.“We can’t identify if someone gets up and another sits down,” says Palmer, the manager at Siquis. Still, she believes that public computers are a minor concern for most marketers; in fact, Palmer says, “the times are few and far between point, Vanderhook says, that consumer will be hit with more travel ads offering deals related to her previous search history. Still, he notes, even this approach has differing tactics: targeting consumers based on Web site visited, keyword searched, keywords read within content, or actions on your own Web site (e.g., “homepage viewers,”“product information viewers,” or “shopping cart abandoned viewers”). Not everyone agrees this is the best method—after all, customers are rarely ever just interested in one thing, says Jack Jia, chief executive officer of Baynote, a provider of what the company calls on-demand recommendation technology. “Clicks are more of a function,” he adds. “They’re not a good indicator of what’s useful That’s why the number-one-used button [on a Web site] is the ‘back’ button.” Jia argues that tracking the individual based on historical behavior stereotypes the consumer into being an insular person with singular wants. In response, Vanderhook says that clicks do provide useful insight when monitored for frequency over a short period of time. “You’re not going to accidentally click eight times,” he says. Though Jia certainly has a point, when it comes to tracking across sites, “WE WANT TO MAKE SURE THAT WHEN YOU’RE ON THAT PAGE…YOU’RE SURROUNDED WITH CONTENT THAT IS CONSISTENT WITH THAT EXPERIENCE.” when that many people are swapping computers to the point where the advertising might be skewed.” CATCH ME IF YOU CAN The more widely recognized tactic of behavioral targeting is tracking individual behavior and marketing based on a “rule set,” or serving ads based on the recency and frequency of a specific search topic. When the software detects high viewing rates of travel sites, for example, this presumably indicates that a consumer is nearing the end of her researching cycle and entering into buying mode. At this How Do You Define Behavorial Targeting? “We look at advertisers who are looking for a certain behavior undertaken by the user, whether this behavior is a reaction to a certain type of advertisement, using certain sites, or searching for certain keywords.” —Michael Greene, research associate, JupiterResearch “Generally speaking, [BT] talks about using behavior to do different kinds of marketing and targeting work, instead of using rules and…other information. Simply by watching user behaviors, you can target and market content, product, or advertising.” —Jack Jia, chief executive officer, Baynote “Tracking a single user from one Web site to another and gaining info about them, what their interests are in life, and essentially trying to match the ads and make them relevant to the consumer.” —Tim Vanderhook, chief executive officer, Specific Media “A lot of the information collected to determine and discern your segment is, in fact, itself behavioral. I don’t think there’s a perfect definition here, but it’s evolving.” —Richard Howe, chief marketing and strategy officer, Acxiom [ A word from an expert about the difference between behavioral marketing and behavioral targeting: “We typically use the term behavioral targeting to describe a tactic that is part of a wider, targeted marketing effort. I personally would try to avoid using the term behavioral marketing because it implies that other marketing tactics (geotargeting, demographic targeting, creative optimization, etc.) are somehow not involved in a campaign.” —Michael Greene www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | JANUARY 2008 27 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - January 2008

CRM - January 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point Facebook's About-Face On the Scene: Oracle OpenWorld 2007 CRM Market Set to Double Customers, Meet your Makers Required Reading Oh, Behave! Fine-Tuning the Channel Listen Up! The Master Piece Flying High on Customer Service Let's Get Digital The Big Rigs Get Revved Up Putting Asia in Your Pocket Secret of My Success Connect Re:Tooling Pint of View

CRM - January 2008

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