The term Behavioral Advertising and Predictive Advertising has been making the rounds for quite a while. However, not everyone is clear about how minuscule pieces of information come together to form a pattern.
“Behavioral Advertising can be summed up as a technique used by advertisers, to display targeted ads to consumers, by collecting their browsing data and analyzing patterns over a period of time.”
Figure 1: An ecosystem of Behavioral Targeting, and how it works.
How does It work?
Let us say you recently browsed through the handbag collection at Macy’s website. Shortly after, whichever website you visit, has Handbag ads served to you with attractive prices and quick delivery options. Over the past years, Behavioral Advertising has rapidly replaced traditional targeting like demographic targeting etc;
Behavioral Advertising has hugely impacted the buying behavior of a consumer, by altering their self-perception. Let’s understand this by an example, you purchase some vegan products a few times a month, every month. Based on targeting algorithm, marketers label you as “Animal conscious” consumer and soon most of the ads you’ll see will be based on the Label they’ve created – “Animal Conscious”. Soon enough, you’ll start responding to this label and purchase more “animal-friendly” products.
What’s cooking behind the …