Effective behavioral target marketing for local businesses

POSTED BY Kelly Homewood - 01.14.13 - Digital marketing

Behavioral targetingEvery business owner understands that in order to grow their business they must invest in marketing. Today, every marketing strategy should include a digital component and one of the best options is targeted advertising.

For small to medium-size local businesses with a limited budget, it’s important to target your marketing to the right audience. Only a portion of the population is likely to purchase a product or service at any given time. So, how do you reach the exact audience that is likely to buy your product or service?


Behavioral target marketing

Behavioral target marketing is one option. SourceMedia Group – the parent company of Fusionfarm – recently partnered with Lotame, a leading vendor in behavioral audience targeting.

Here’s how behavioral target marketing works:

  • We place a piece of code on the Source Media Group websites.
  • A cookie is then placed in the browser of a person who visits one of our sites. This triggers a data collection process and also acts to serve advertisements based on those behaviors.
  • Behavioral data is collected as the person navigates and makes specific actions around the Internet. Recorded in the data is information such as types of purchases, sites visited and searches performed. The more time goes on, the more data is collected.
  • The data is used to create audience segments for advertisers by the people’s online behaviors, which we then use to target with specific ad messages.

In the past, businesses targeted online audiences by assigning people to various demographics like age, gender and location. Armed with better data, targeting advertising is much more dynamic and specific to interests and preferences, and often a better use of the marketing dollars of a local business.

Behavioral target marketing can nearly promise more engagement by targeting people who have indicated through their online behavioral patterns that they may be interested in a specific product or service.

Though the CPM rate – the cost per one thousand impressions – is slightly higher than run-of-site banner advertising, the conversion rate will offset the increased cost.

The 2009 Network Advertising Initiative studymeasured the cost and effectiveness of targeted advertising. The study revealed that targeted advertising secured an average of 2.7 times more revenue per ad as non-targeted run-of-site advertising. It is also twice as effective at converting people who click on the ads into buyers.

Combined with a creative message that includes a strong call to action, Behavioral target marketing is an effective and cost efficient component of any local business marketing plan.


Kelly Homewood

Kelly Homewood

Kelly is the Director of Marketing Services at Fusionfarm. With a background that includes retail management, business development, sales management, product development and marketing, she is passionate about team building and believes there is nothing a team of smart, passionate, empowered people can’t accomplish. Kelly’s focus is on making sure we deliver results for our clients every day. When she is not busy talking, Kelly enjoys reading and planning her next island adventure with her husband and group of friends. Must include excellent margaritas!

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