Have you ever wondered how that cute pair of jeans showed up on your Facebook profile? Or the handbag you looked at earlier in the day? The answer is behavioral marketing. In today's world, marketers can use consumer behavior to make a detailed, focused marketing campaign for each user. This is done by using your search history, IP address, and cookies. I went onto my Facebook page and looked at what sponsored ads were featured on my page: apartments/houses, bridesmaid dresses, and phone cases. The first is likely based on my search history for the past two years as I was looking for a new apartment. The second is because I have been looking at dresses for my best friend’s wedding, and the third is because I bought a new phone case from Casetify recently. These companies used my previous browsing history to make targeted promotions.
Search and shopping cart information can be used for retargeting, letting someone know they left an item in their cart and/or offering other items they may like based on “previously viewed” products. Demographic targeting is another way to use information received from internet searches to sort people by age, gender, geography, race, religion, education, etc. People can be bucketed into homogenous groups, and when a person fits certain parameters, an advertisement that should appeal to them will appear. Let's use Pepsi advertisements as an example for demographic targeting.
This picture is targeting all young adults who have an active lifestyle. The liveliness in this photo will stand out to a younger crowd, and the use of multiple activities will allow this advertisement to appeal to a wide range of people.
Just by looking at the above advertisement, one can easily determine that this is targeted toward different demographic than the previous ad. It is still geared towards young adults, but it’s focused on people who are interested in activism and environmental friendly practices.
While I can continue along this route, I want to switch gears and take a look at how culture affects Pepsi’s advertisements.
This is an advertisement from India. In theory, it could be used across geographies to target people who enjoy soccer. However, the celebrity featured above is Ranbir Kapoor, an Indian actor and film producer for Bollywood. Due to his specific audience, this advertisement will draw a bigger audience in India, and other Indian communities.
Based on search history, Pepsi and other companies can target the market based on consumer behavior. This allows marketers to better understand their customers and help anticipate their needs. Use of targeted data gets at least a 50% better response rate than non-targeted data.
What other factors do you think are important when looking at behavioral segmentation?