Wednesday, January 19, 2011

Behavioral targeting: Innovative marketing or invasion of privacy?

In the quest to get more targeted with advertising messages, behavioral targeting seems like the answer to many frustrated marketers’ prayers. Some consumer groups disagree, though, calling this new targeting method more like Big Brother than the next Big Idea.

Behavioral targeting mediums track consumers’ habits and then offer advertisers the ability to serve up messages that correlate to these habits. Imagine that you are thinking of buying a new car. You fire up your computer, go online and start surfing websites with information about the car you are interested in buying. All of sudden you start seeing ads for car insurance. How did that insurance company know you were looking for a car? Well, little did you know you were leaving a trail of breadcrumbs for a behavioral targeting company to follow.

Most consumers don’t realize their online behavior can be tracked and used for marketing purposes. Needless to say, a fair number of them might be a bit uncomfortable knowing their habits are being cataloged.

Behavioral targeting is now getting even closer to home. Not only are behaviorally-based ads being served up on your Facebook page and in your e-mail, banks are now offering advertisers the ability to target their customers based on their purchasing habits. The next time you use your debit card at McDonald’s, don’t be surprised to see a coupon for the McRib the next time you log on to your online banking page.

How far behavioral targeting will go before consumers or the government takes a hard look at the privacy issue remains to be seen. For now it offers marketers a great way to get more specific with their ad messages and their target markets.
And, hey, if you can save a buck on your next drive thru order, who’s complaining?

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