How Using Data on Target Audience Behavior and Pain Helps to Optimize Contextual Advertising
How to define the target audience in digital advertising.
The target audience (TA) consists of people. They have an interest in the promoted product or service. With the right selection of TA, we help to meet the consumer need that the product solves. (Hence the name Targeted, i.e. “on target”)
Target Audience Example:
Let’s take a website that offers design courses. Users interested in design will be our target audience. The reverse, i.e. not our TA, will be users who are looking for programming courses.
Why it’s important to collect data of behavior and pain of the TA in targeting advertising
We need to collect data on TA”s. We need to learn about their behavior and pain. This is necessary to form a unique selling proposition (USP) for each group. Offering the same product to all possible users is costly and ineffective. This is because users think . For example, a young guy of 21 thinks differently than a woman of 55 and so on.
Segmentation is the division of TA into several small subgroups. To plan the TSS accurately we need segmentation. TA has two main segments. They are demographics and interest.
We need demographic factors to form a portrait and find the pain points of the target audience. What these factors include in contextual advertising:
– Geographical factor: city, country, places that people visited.
– Social factor: gender, age, education, marital status, place of work, status;
– Economic factor: ability to pay, how long it takes to make decisions.
An example of a TA portrait for a website selling design courses:
Victoria is 23 years old. She finished her higher education as an engineer. Now she works as a waiter. She does not want to mix her job as a waiter with engineering. She has a small salary and long hours. She lacks time for her personal life. So, she only goes to work and sometimes for a walk. Since childhood she has loved to invent and create something, but now she doesn’t know what exactly to do.
Several segments divide user interest:
– Cold segment: users who have a need but do not yet understand what they want.
– Warm segment: users who have a need and know what they want.
– Hot segment: users who have a need to buy a specific product from a specific company.
Using data on the behavior and pains of the target audience in advertising
Data on TA behavior and pains is important for ad optimization. It lets you create targeted campaigns.
Target audience data plays a key role in the following aspects:
Understanding needs:
Studying the behaviors and pains of the TA helps. It helps in understanding their problems and desires. This lets companies create ads. The ads talk to the customer’s needs and offer solutions.
For example, a user looks for design courses. They have an interest in creativity. You can emphasize this more.
Improved targeting:
Knowing about user behavior allows you to target your ad campaigns more accurately. This cuts costs and boosts conversion rates. We only show ads to interested people.
For example: a client has allocated $1000 for advertising. We know that creative people have an interest in design. It’s 10% of all possible interests. After the advertising ends, we get 20 conversions. Users interested in creativity made them. Next time, we will run ads targeting interest in creativity. Out of 1000$ we get not 20 but 100 conversions, because we showed ads to interested people.
Companies can use data on the behavior and pains of the target audience. This data lets them create more relevant and attractive ads. This increases CTR. It reduces the cost per click and boosts the ad campaign’s effectiveness.
For example, if we prioritize users’ needs, they will be interested in how we strive to meet them. The law is very simple:
1) We solve a need, means users click more on the ads;
2) More clicks means more CTR;
3) More CTR means less cost per click;
4) Less cost per click means more traffic received;
5) More traffic received means users like the ad.
How we used TA data in contextual targeting. What benefits we find in using of audience targeting in our practice
Case #1. Robotics school for children from 5 to 15 years old
Client’s problem:
The ad account had a low conversion rate (1.44%) with high impressions and clicks. Ad impressions were going to all users in the city, not a relevant audience. Nowhere to spend the budget. We need to target parents whose children are in the age category we are interested in.
Description of the analysis:
We analyzed the client’s request. We found that the main audience is parents of children aged 5 to 15. The audience for shows has narrowed. So, it makes no sense to divide TA into cold, warm, and hot. Few parents watch and we need to get the most out of it.
How we solved the problem:
Plugged in audience targeting:
– Parents of preschoolers (4-5 year old’s)
– Parents of teenagers (13-17 years old)
– Parents of schoolchildren (6-12 years old)
What results did the display ads achieve in 2 weeks?
– The difference in clicks is 4.21 times.
– The difference in impressions is 24.86 times.
– The CTR of the segmented audience is 6.02 times higher than that of the unsegmented audience.
– Ad relevance increased ad impressions and influenced conversion growth.
Bottom line: Costs, average price per click and conversion rates:
An audience without a segment has higher costs. It gets more traffic than the segmented audience. So, it has a lower cost per click. But, the cost per click loses its meaning. The audience with a segment has 1.84 times more conversions.
The unsegmented audience has a low conversion rate. This is due to non-targeted site traffic
One of the main metrics is the cost per conversion. You can use it to track optimization for your target audience.
The segmented audience has a 4.28 times lower cost per conversion. You can see the figures in the table above.
Case #2: Real estate on an island
Client Problem:
Needed to increase website traffic, percentage of impressions received and CTR. Audience targeting was not working in existing advertising campaigns.
Analysis Description:
After analyzing the company’s offer, we realized the audience needs high earnings or finance knowledge. They would have an interest in investing in real estate.
Our segment does not include users interested in real estate. They have not made any further purchases. There are more of them, and they are not profitable in terms of costs.
How we solved the problem:
We launched a campaign with targeting on active investors (campaign “RU | Search | Targeting”). We didn’t run targeting in observation mode in the main campaign. We needed to do a full A/B test of the display without segments and with an audience segment.
What did we achieve during 10 days of work?
In the targeted campaign, all the impression percentage indicators increased.
– The percentage of impressions on the top position increased by 35.43%
– The percentage of impressions on the top position increased by 7.74%
– The percentage of impressions received in the search network increased by 28.26%
Impressions fell by 63.52%. Clicks fell by 38.79%. This drop is visible in the CTR increase of 8.24% for the targeted campaign.
For the targeting campaign, the price per click increased by 16.93%. This is because we must bring targeted users to the site. You can see this in the percentage of impressions received.
Recommendations for using data on TA behavior and pain
1) Use your TA behavior data to test different variants of ads, headlines and descriptions:
Analyze test results. Use the data to improve your campaigns. This will raise their effectiveness and conversion rates.
2) We can’t always be sure that the audience will work the way we predict: We need to test and experiment. For such cases, use the audience observation section. It does not target audiences but collects the information we need. We can later use this info in the ad campaign.
3) Always segment your TA:
Divide your users into segments based on their behaviors and pains.
For example, “new visitors”, “loyal customers”, and “users who left an item in the shopping cart”. You can use this info to tailor your marketing to each group.
4) Create targeted marketing campaigns and use data about your TA’s pains and needs:
For example, if you notice that your audience has pains or challenges. You can make content or promos to help them deal with those challenges.
Why is it better to entrust your TA work to a specialist?
1. A TA specialist has more experience and expertise. They understand your audience’s needs, interests, and preferences. These are hard for the average user to identify.
Our specialists have vast experience with the target audience. We use our skills in SEO and contextual ads daily.
2. You need skills in working with professional tools to work with TA. You need to use tools to analyze data, find key metrics, make marketing strategies, and do research.
3. Budget optimization and goal achievement. By entrusting TA work to a specialist, you can ensure that the marketing campaigns will be effective and efficient. They will consider the given timeframe and budget.
From our practice, we can say that focusing on quality segments and working with the target audience speeds up making and running ads. It does so by an average of 2-3 times. We are constantly optimizing the budget of clients using our experience and knowledge.
4. Time saving: Delegating the task of working with TA will save you time, which you can direct to other tasks and projects of the company. Besides, the lead time for the task of working with TA will be significantly reduced.
For which services we use audience targeting
Collecting information about the TA is a must in any of our activities. These include SEO promotion, setting up ads, and working with links.
To collect information about TA we use all niches:
1. At first, all audience segments observe.
2. After we start the best segments. But, we are already in targeting mode to boost the campaign’s performance.
Conclusion
From all the above points, we can conclude that:
1. The use of TA in RC increases the relevance of ads, which leads to the fact that we show ads on more favorable terms.
2. Implementing TA in a campaign is a great way to optimize and find new marketing strategies.
3. It is impossible to know exactly how the TA will work. First you need to conduct an experiment, then make analytics and conclusions.
4. Clustering segments of the TA can create unique selling propositions for each audience. This leads to more relevant ads.
5. There are no limits on making TA. You should try and experiment with everything!
You can order the service of working with Target Audience for your company. Fill out the form on our website. We will contact you as soon as possible.
FAQ Using of target audience data
Contextual advertising relies on contextual data rather than personal user data, respecting user privacy concerns in a cookieless environment.
2. What are the benefits of leveraging contextual advertising platforms for marketers?
Contextual advertising offers precise targeting based on the context of the webpage, increasing the likelihood of reaching the right audience at the right time.
3. How does contextual advertising differ from behavioral advertising in terms of user privacy?
Contextual advertising focuses on the content of the web page rather than individual user behavior, thus respecting user privacy while still delivering relevant content.
4. Can you explain how contextual targeting works in the world of digital marketing?
Contextual targeting uses keywords and content analysis to deliver ads relevant to the user’s current context on a webpage, without relying on personal user data.
5. What are some examples of contextual advertising campaigns that effectively reach their target audience?
Contextual advertising campaigns leverage contextual data to deliver relevant ads based on the content users are currently viewing, enhancing user experience and increasing advertising effectiveness.
6. How do contextual advertising platforms leverage machine learning and artificial intelligence?
Contextual advertising platforms use machine learning algorithms to analyze web page content and deliver relevant ads in real-time, adapting to changes in the digital landscape.
7. What role does user-based data play in contextual advertising efforts?
Contextual advertising respects user privacy by not relying on individual user data, instead focusing on delivering relevant ads based on the content users are currently engaged with.
8. How does contextual advertising respect user privacy while still offering effective advertising solutions?
Contextual advertising allows advertisers to reach the right audience at the right time based on the context of the webpage, without compromising user privacy by using personal data.
9. In what ways can contextual advertising benefit from the use of contextual targeting strategies?
Contextual targeting strategies enhance contextual advertising by ensuring that ads are relevant to the user’s current context, improving user experience and advertising effectiveness.
Contextual advertising thrives in a cookieless environment by relying on contextual data rather than third-party cookies, offering effective advertising solutions while respecting user privacy.
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