Ever wondered why, when you are searching on some of your favourite sites online, some very tempting and suspiciously targeted items or services are being advertised you? Well, behavioural targeting :
“The practice of seeking out consumers based on where they go and what they do as indicators of what their interests are most likely to be” [1]
is becoming an increasingly popular, and effective way of advertising to consumers online.
“The practice of seeking out consumers based on where they go and what they do as indicators of what their interests are most likely to be” [1]
is becoming an increasingly popular, and effective way of advertising to consumers online.
Online Behavioural targeting spend is increasing year on year (US figures) [2]and when companies like Google aquire a company like DoubleClick, who specialise in targeted advertising online, for a whopping $3.1 Billion (that’s nearly DOUBLE what they paid for YouTube) you know it’s big business.
[2]
Sites track unique information about the users and where they click, recording this information using “cookies”. Profiles of individuals can be built up and advertising targeted. For example I’m a Football Fan, living in Bournemouth, who’s recently been considering whether to go to the Red Bull FlugTag event in Leeds. Just take a look at the advertising that’s on my Facebook profile [3]. The evident question that stands is; Is this an invasion of your privacy? The fact that a company knows what bands I like, what football team I support and what purchases I’ve made or not made. Something about this process seems unfair on the consumer however the ambiguous, out dated and ineffective policing of online privacy, allows this.
[3]
I believe an issue which has not been touched on in much I’ve read around the subject is the issue of remarketing. When a user mulls over a product, or looks at it in greater detail, this is logged and targeted advertising can be created to constantly remind, and encourage the purchase of these items. The image below [4]shows how this can be executed.
[4]
I recently looked to purchase a new set of headphones from play.com, however couldn’t really afford them. Whilst on a totally unrelated site (caughtoffside.com, a football rumours website) play.com are advertising this item and other ones I’ve looked at with a “shop now” button, taking me straight through to a purchasing page. Denegri Knott [5] speaks about how consumer desire can be more easily actualised in e-consumption, with the option to “buy it now” on e-bay, however this is in an online auction environment where users accept they are in a place where their ability to purchase will be exploited. This I believe is fair, marketing is all about encouraging purchases and making the most out of consumer desires; however I would argue that encouraging purchasing in a more personal environment, where consumers desires are not to purchase but to be informed, entertained or using information which an individual has not willingly disclosed is unethical and irresponsible. Unwanted or irrelevant targeted communications , can annoy, be received as inappropriate and discourage consumers from a brand. Spamming through e-mails did exactly this and targeted online advertising could go this way, online retailers beware!
Reccomended Read: Denegri-Knott, J., 2010. ‘Have it now!” : eBay and the acceleration of consumer desire – Interesting and enlightening way in which we purchase online, and does remind you of behaviours you possess, even if you didn’t know it.
Top Tweeter: @mtlb (Bill Green) worth checking out his blog too! #advertising
[1] Miller, R and Washington, K. Consumer Behavior, 2011, p345: http://content.ebscohost.com/pdf25_26/pdf/2011/2EL2/01Jan11/58591724.pdf?T=P&P=AN&K=58591724&S=R&D=bth&EbscoContent=dGJyMMvl7ESep684v%2BbwOLCmr0mep69Ss664SrOWxWXS&ContentCustomer=dGJyMPGts0y1ra5QuePfgeyx43zx
[2]US Behaviourally Targeted Online Advertising Spending 2006-2012 (millions) via emarketer: http://www.marketingcharts.com/direct/behavioral-targeting-ad-spend-poised-for-growth-with-help-from-online-video-5019/emarketer-behaviorally-targeted-online-ad-spend-2006-2012jpg/
[5] Denegri-Knott, J., 2010. ‘Have it now!” : eBay and the acceleration of consumer desire. In: European Conference of the Association for Consumer Research, 30 June-3 July 2010 , Royal Holloway, University of London.
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