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Check us out at our new blog Online Advertising Voodoo. Here we will cover behavioral targeting, search engine marketing, seo, media buying and the online advertising industry.

Click-Through Rate vs Action-Through Rate

A recent study conducted by behavioral targeting ad network, BlueLithium, yielded some interesting results concerning ads and the relevance of the context in which they are shown in. The study included over 400 million impressions and evaluated click-through rates as well as clicks that resulted in actual conversions, what they called “action-through rates.

The results of the study found that advertisements that were consistent with the context of the behavior had the highest click through rates. Meaning that people who visited golf sites were more likely to click on ads for golf clubs; which seems sensible.

The study found something perhaps more interesting though. The “action-through” rates or rates of actual conversions were higher when the advertisements were shown outside of the context of the behavior. Meaning the ads for golf clubs that were shown on cooking sites produced more conversions then those shown on actual golf sites.

Based on the finding of this study one would have to conclude that the proper placement of behaviorally targeted ads should be determined by the desired results. If increased traffic is the main goal, then ads should be shown on sites that are consistent with the behavior. If action or conversion is the desired result then ads should be shown in a different context than the behavior.

"Behavioral Targeting" Search is Up

In a Google search today, the phrase “behavioral targeting” yields around 3.5 million natural results, which is a significant change from when behavioral targeting first came about. This shows that behavior is becoming a major factor in successfully planning out campaigns.

The way the industry views and plans media must now start to include behavioral measures to help yield better results, its not just about reach and frequency anymore. Be on the look out for more targeted ads that appeal to your interests :-)

Next in BT: On-site Behavioral Targeting

On-site behavioral targeting pulls individual web visitor’s noticed click stream behavior from current web visits and previous web visits to determine which content is the more practical to their interests. This content will then be served to them to achieve revenue, clickthrough or conversion while the visitor is still on the Web site. Once onsite behavioral targeting occurs, its effectiveness is measured and reviewed against the lift and yield that it delivered.

On-site behavioral targeting can help marketing organizations show better ROI since it delivers measurable and improved input since it’s reporting against a control group and the improvements in lift that it actually generates.

Facebook Testing Targeted "Sponsored Stories"

Online social networking groups have become extremely popular recently as we have heard on the news, web and of course word of mouth. Groups like MySpace, Facebook, and LinkIn provide places for people all over the nation and world to come together online and exchange thoughts and ideas. These groups allow users to segment themselves into groups based on their behaviors and interests. Users can join communities or more focused groups within each network.

Online social networking groups create a unique environment for advertisers today. Advertisers no longer have to guess about the interests of perspective consumers. Facebook will now offer advertisers an opportunity to capitalize on these finely segmented groups. Facebook will include a “Sponsored Story” on users’ home pages that will be an advertisement selected based on the unique preferences of the user. Information that is provided in users’ profiles will supply the information needed to target the advertisements. Links in the ads will then lead back to either the advertiser’s own Facebook profile or their branded website. Facebook has been one network to take chances and make changes to the network some backfiring like implementing RSS feeds into a user's profile so everytime there was a change, the RSS feeds were updated. However, I think this one might just stick.

Give them What they Want

Kids today are more technically savvy than ever before. They text message, download music and watch television all at the same time. As the consumers of the future, it is important to pay attention to their habits today, because they will only intensify in the years to come.

According to a recent article on clickz.com, young consumers today love to have ownership of a product. Build-A-Bear is a perfect example of this. Consumers are able to customize and create their stuffed friend and take it home in less than an hour. The ability to design a product is very important to kids; brands will need to cater to this in the future if they wish to keep consumers’ attention with their products.

It is so important to recognize the key characteristics of the audience being targeted. They hold the power to shoot you straight to the top or to bury your brand beneath your competitors. Understanding consumers’ key habits and preferences while reviewing brand values can help ensure advertisers are reaching as many consumers as possible.

Identifying Behaviorally Targeted Outlets

Strategies to consider when identifying behaviorally targeted outlets include:

Review of search activity – By reviewing consumers search activity advertisers can plan the right time and message to deliver to the consumer based on their consideration cycle. Search activity often includes capturing keywords used to identify the site and keywords used in the site search.

Frequency and last time of visit – Frequency and last time of visit in relation to purchase behavior help determine when the consumer will actually make a purchase. Behaviors to track here include the amount of visits it takes before a typical converter to convert.

Conduct Surveys - Conducting surveys allow advertisers to gather rich data on which to segment. Advertisers can then utilize this data to create experiences that meet the needs of each user group.

User Personas - Gathering user personas allows advertisers to match behavioral data with these user personas to link behavioral data that is anonymous with a deeper and richer representation of a particular group that show signs of the same behavior. By being able to predict the content the users needs allows the advertiser to match them to a particular persona thus allowing advertisers to anticipate the needs of site visitors.