Programmatic buying allows marketers to use data to segment and target users based on their behavior. There are five major targeting types, which can be used separately, or combined to create a more complete audience picture.
Remarketing: Generally the best-known type of online targeting, remarketing allows brands to reach users who have previously visited their site. You may recognize some brands “following” you around the internet with the same ad — that’s remarketing. While poorly managed remarketing can become annoying, good remarketing works. According to the conversion rate optimization consultancy Invesp, website visitors who are retargeted are 70% more likely to convert than those that are not.
Audience: Audience targeting, also called demographic targeting, is reaching users based on their demographic information. This includes identifiers like income, education level, relationship status, and hundreds of other specific attributes.
Behavioral: This is generally used to reach users based on actions they’ve taken online, but can sometimes include offline behavior as well. Behavioral targeting allows advertisers to segment based on things like specific websites or types of websites visited, searches made, and purchase history. In a campaign for the Amanda Foundation, a nonprofit emergency animal rescue, this was used to reach users with an adoptable cat or dog that fit their lifestyle. For example, a user identified as athletic or outdoorsy would be served an ad for Mandy, an energetic and active pup with the phrase, “I love a good run, just like you.” Contrast that with the message for someone identified as a single reader: “I love curling up with a good book, just like you.”
Geotargeting: Using geotargeting, marketers can target users in specific locations or types of locations. Don’t worry, they can’t target anyone based on a specific address! But they can target types of places, like stadiums or gyms, or general areas by zip code or latitude/longitudinal address. This is often layered with other types of targeting to deliver specific messages in the right place at the right time.
Contextual: Similar to how marketers traditionally bought online media, contextual targeting reaches a user based on the website they are on. However, using programmatic, buyers are able to target not only specific sites, but also site categories and keywords, leading to increased efficiency and improved relevance.
We can start to see why programmatic targeting really changes the game and reaches the right user with the right message.