In online marketing, targeting is a strategy for approaching and reaching target groups. The aim of targeting advertising is to make a potential target group as aware as possible of a product or service and to increase the conversion rate. You need to precisely define your target group before you can target them. The better you understand the target group, the sooner the targeting and therefore the advertising messages will reach the intended recipient, and the more you will be able to avoid wasted coverage and unnecessary advertising measures. There is a range of targeting strategies to choose from, depending on what you are promoting.
The most important targeting techniques
When it comes to choosing a targeting strategy to market your company, there is no one size fits all solution. What you actually need to do is identify which targeting strategy is effective or whether a combination of several types will offer the ideal solution.
#1 Keyword targeting
This classic strategy is based on defined keywords. If the user is looking for something and types a specific keyword into a search engine, an advertisement aligned with that keyword is displayed. If they are looking for a certain pair of sneakers, for example, they will see the corresponding ad for their specific inquiry or possible for different sneakers as well.
#2 Contextual targeting
Contextual targeting – also called content targeting – focuses on website content as well as keywords. It identifies key terms in the text that match the topic and link them to potential interests of the user. Readers of an online fitness magazine, for example, will see advertisements for sports equipment or nutritional supplements.
#3 Semantic targeting
Like content targeting, semantic targeting concentrates on website content, which is fully decrypted by a software program so that the actual meaning of the content can be analyzed. In other words, it involves identifying complete contexts instead of individual keywords. If the content is about healthy eating, ads relating to that topic can be displayed – such as one for a vegetarian cookbook. This targeting method also prevents advertisements from being displayed in entries or videos with more negative connotations.
#4 Retargeting
With the retargeting strategy, users are shown ads for products they have already looked at. Since the user has already indicated an interest in the product by clicking on it, they are likely to decide to purchase the product once they are reminded about it. Unlike conventional adverts, the click-through rate for a retargeting ad is significantly higher, so it delivers more conversions.
#5 Social media targeting
Whether via Facebook, Instagram or other social platforms, social media targeting utilizes data from platform users and directs advertisements to the corresponding target groups. Using an integrated search function like the one on Facebook makes even more data accessible, which allows even more precise targeting. A properly planned social media strategy is well worth pursuing, as it provides more direct access to the preferred target group.
#6 Behavioral targeting
Behavioral targeting is directed at users’ interactions and search behavior. Cookies and search entries are used to create a customer profile that is based on personal behavior online, taking as many aspects as possible into account to provide advertising that is aligned with the target group. Factors that are considered can include geographical location, gender, age, or even the operating system being used. Predictive behavioral targeting supplements the database with statistics to predict future user behavior.
#7 CRM targeting
This targeting technique uses customer data from a company’s customer relationship management system to obtain information about the desired target group. Addressing the customer directly is not only an opportunity to boost the conversion rate, but also to increase customer retention.
#8 Technical targeting
Technical targeting uses data on a user’s device or operating system and the software that is installed there to display advertisements that correspond to the user’s technical equipment. Advertising banners can be displayed using a variety of file types, so if the user has disabled Flash Player, for example, a different file type will be utilized to animate the advertising banner that appears.
#9 Sociodemographic targeting
Sociodemographic targeting bases target groups on criteria including age, gender, ethnic background, social status, and educational level, uses these aspects to categorize potential customers, and adapts the content appropriately. The tone and presentation of the ad are also taken into consideration before it is displayed selectively.
#10 Psychographic targeting
Psychographic targeting is a strategy for reaching target groups that is moving away from the stereotypical criteria that are typically taken into consideration in sociodemographic targeting. The reasoning behind this method is that society is becoming increasingly diverse and pluralistic, which means that more individual targeting is required to reach customers. Engaging with personal values is key. Psychographic testing looks at characteristics such as sociability, open-mindedness, and empathy, as well as motives such as the desire for challenge or autonomy to identify the user’s basis for making the decision to purchase. This creates differentiated target groups and facilitates more precise marketing.
