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Conversion Rate Optimization (CRO) Glossary Terms

Behavioral Targeting

Conversion Rate Optimization (CRO) Glossary Terms/

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Behavioral Targeting

What is Behavioral Targeting?

Behavioral targeting is a method of creating personalized user experiences by collecting data on how people interact with websites, apps, emails, or digital ads. Instead of a one-size-fits-all marketing approach, it focuses on tailoring content based on the behavioral patterns of users.

For example, let’s say a user visits a website multiple times, checks out a certain category of items, adds products to their cart but doesn’t make a purchase. Behavioral targeting would allow businesses to create ads or send emails that specifically show that unpurchased product. The idea is simple — meet customers where they are by showing them what they’re already interested in.

Why is Behavioral Targeting Important?

Personalization is no longer optional. Today's customers expect their interactions with brands to be relevant and tailored to their specific needs. Behavioral targeting:

  • Enhances user engagement by showing customers content they care about.
  • Drives stronger conversions by providing offers or calls to action based on past behaviors.
  • Reduces ad fatigue by only displaying relevant advertisements or messaging.

For instance, imagine you're engaging in conversion rate optimization efforts for your website. Behavioral targeting can significantly boost your results by delivering tailored content that encourages users to take specific actions like signing up, purchasing, or exploring more.

How Does Behavioral Targeting Work?

At its core, behavioral targeting uses data. Here’s a quick step-by-step breakdown:

  1. Data Collection: Tools like cookies, pixels, or session tracking help monitor users’ online activities. This could include:
    • Pages visited
    • Time spent on specific sections
    • Products viewed or abandoned in the cart
    • Click-through behavior on emails or social media
  2. Segmentation: Users are grouped based on their behaviors, such as frequent shoppers, new visitors, or webinar registrants.
  3. Content Personalization: Relevant messaging is created and delivered, like product recommendations or special offers. For instance, a user looking at your services page could start seeing follow-up content on the unique benefits of conversion rate optimization.

What is Behavioural targeting vs contextual targeting?

Aspect

Behavioral Targeting

Contextual Targeting

Definition

Targets users based on their online behavior (e.g., browsing history, searches, clicks).

Targets ads based on the content of the webpage being viewed.

Focus

User-focused: Personalizes ads for individual preferences.

Content-focused: Aligns ads with the webpage's topic.

Data Used

User data (cookies, search history, demographics).

Keywords, metadata, and page content.

Privacy

Relies on tracking user data, raising potential privacy concerns.

Does not require personal data, offering better privacy.

Personalization

Highly personalized to individual users.

Generalized to match webpage content.

Example

Shows workout gear ads to users who visit fitness sites, even on unrelated pages.

Shows kitchen appliance ads on a cooking blog.

Strength

Effective for retargeting and building customer loyalty.

Privacy-friendly and compliant with data protection laws.

Weakness

Privacy concerns and dependency on third-party cookies.

Less personalized and potentially less engaging.

Types of Behavioral Targeting

Behavioral targeting isn’t a one-size-fits-all approach. Understanding the types can help refine your strategy:

  • Site Retargeting: Ever felt like an ad is following you? That’s site retargeting in action. If you leave a page without completing an action, you’re likely to see an ad reminding you to come back.
  • Search Retargeting: This delivers ads based on user search queries. For example, if someone searches "UX design strategies," they may see targeted ads for firms that specialize in UX design, like Tenet.
  • CRM-Based Targeting: Uses data from customer relationship management tools to create campaigns tailored to ongoing customer behaviors. Think of tailored emails reminding clients about incomplete forms or expired subscriptions.
  • Predictive Targeting: Leverages AI and data analytics to predict future actions based on past behaviors. This works exceptionally well for long-term engagement.

Behavioral Targeting in Design and CRO

For a company like Tenet, which specializes in Conversion Rate Optimization (CRO) services and UI/UX design, behavioral targeting is a game-changer.

Here’s why:

  1. Informing UI/UX Decisions: By analyzing user behavior, Tenet can design interfaces that cater to individual preferences — be it highlighting popular features or smoothing out form completions.
  2. Improving Funnels: Behavioral insights help CRO-focused teams identify where users drop off in the buying process and create hyper-focused strategies to re-engage them.
  3. Tailored Recommendations: Businesses can create page layouts and CTAs that adapt dynamically to a user’s needs. For example, a visitor from Tenet's industries page might be shown sectors or case studies that match their vertical.

Benefits of Behavioral Targeting for Businesses

If you're wondering how businesses benefit from mastering this strategy, here's a simplified list:

  • Better ROI: Personalized marketing is more effective at converting leads into customers.
  • Optimized Customer Experience: Timely and relevant messaging builds trust.
  • Informed Strategies: Behavioral data helps refine future campaigns, ensuring continual improvement.
  • Stronger Brand-User Connection: Knowing what customers want fosters loyalty and long-term relationships.

Challenges in Behavioral Targeting

It’s not all smooth sailing. Businesses need to overcome a few challenges to get behavioral targeting right:

  • Privacy Concerns: Users demand transparency about how their data is used. Implementing ethical, GDPR-compliant practices is a must.
  • Over-Personalization: Sending too many tailored messages might feel intrusive. Strike a balance!
  • Technological Hiccups: Adopting tools with limited capabilities can lead to inaccurate data or poorly designed campaigns. Partnering with providers like Tenet with proven technical expertise ensures success.
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