Digital ads aren't like magazine or traditional TV ads in that there is a plethora of targeting options – from targeting devices to reaching specific people. In this section, you’ll learn about different types of targeting, technology used for targeting, and how to target more effectively.
Types of Targeting
There are two main types of targeting - inventory targeting, which serves ads on sites that offer a specific type of content or are visited frequently by individuals within a particular demographic, and user targeting – which serves ads to individuals who have exhibited a particular behavior or interest.
TYPES OF SEGMENTATION STRATEGIES
Demographic: Marketing segmentation strategy where the audience (potential customers) is divided into externally measurable characteristics.
Behavioral: A more focused form of market segmentation, which groups consumers based on specific consumption patterns they display
• Past purchasing history
• Browsing history
Dayparting: Targeting users that are active at a particular time of day or day of week
Designated Market Area: A segment Nielsen uses to standardize geographic areas for the purposes of targeting and measurement
Retargeting: Targeting past visitors of your site
Product-related: Segmenting the audience based on usage of a product (such as heavy vs. light)
Tracking User Activity
Cookies: A Cookie is a text file sent from a website and stored in a user's web browser while the user is browsing that website.
Web beacons: Also known as a "tracking pixel", a Web Beacon is a transparent graphic image (usually 1 pixel x 1 pixel) that is placed on a site or in an email, and used in combination with cookies to transfer or collect information through a graphic image request.
Persistent IDs: Refers to "people-based" marketing as opposed to device-based. Persistent ID Targeting uses ID logins for sites or mobile apps such as Facebook; IDs are assigned to a user, and stay with the user throughout browsing and across devices.
Best practices for targeting
Don’t over-specify. Avoid making your strategy so specific that you end up with a reduced pool of potential customers. Piling a variety of schemes on top of each other is called hypertargeting, and is likely to hinder your campaign's performance by reducing your audience.
Target appropriately across media. Don't address your audience purely from one front; you may be reaching a different audience with your mobile and social strategy, and consumers interacting with your message through these channels may behave differently than they would through other channels.
Think strategically before tactically. You know your clients and their objectives. The objectives for targeting on a local scale are very different than targeting at a global scale, just as the objectives for a CPG advertiser with a short conversion cycle versus a longer term cycle.
Use past campaign analysis to revise your targeting strategy. It may sound obvious, but careful tracking of pacing and performance across past campaigns will tell you how well your message resonates with your target audience. If your message is underperforming, it may be the creative - or it may be that the audience you have set doesn't mesh with a particular medium, or perhaps you've defined your target audience too narrowly.
Frequency cap. Bombarding your audience over and over tends to lead to decreased engagement with an ad, and at worst, overexposure can lead to a negative association with your brand. Industry best practices place the frequency cap at 3.
A/B test. This is best practice for all types of advertising, and will help you better measure your campaign's success and plan for future retargeting campaigns.
Burn pixel. Just as consumers don't want to see the same retargeted ad 50 times, they don't want to continue seeing ads after they have converted, such as making a purchase. An easy solution is to use a burn pixel, which untags viewers as recipients of your ad once they have made a purchase.
Here’s how it works: you place a small, unobtrusive piece of code on your website (this code is sometimes referred to as a pixel). Your visitors will not see the code, and it will not affect your site’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when these visitors browse the web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to people who have previously visited your site.