Question

Companies are also amassing personal data from their customers for behavioral targeting. Discuss the pros and cons of behavioral targeting.

Answer 1

• PROS

One of the advantages is that It allows you to know your customers very well: As the internet goes on from time t

o time opening up a wealth market opportunity a need to stay consistence in what customers need and also what they want in other to increase the same amount over and over again. In other to market a product it is no longer necessary to talk about how the product works, but instead to discuss about how to works to the consumers. It is

Anticipate the need and want of your current clients: With behavioral targeting, you can anticipate the needs and wants of your current clients, and use this information to base your marketing decisions on the assumption that the needs of your current clients will close match the needs of your future clients. Predictive behavioral targeting allows you to be ahead of the bell curve. For example, iPhone’s global success is because it is the first among its competitors to give users applications and full easy touch screen internet access. Everyone else could not reach their standard so ended up becoming an attempted competitor. Behavioral targeting can provide consumers everything they need before they even realize they need it, which almost always guarantees a sale. Online businesses can anticipate consumer browsing habits and offer suggestions that lead to your products.important for marketers to be customer oriented and focused.  Existing customers are a great source for new business, and you can bring your market by offering incentives on sales, causing spur buying.

Increase your productivity: Behavioral targeting is one that allow you to increase your productivity initially without spending much and this involves studying the behavior of your average client so you know where to search for them and ensure that your advantages are being viewed by this audience. This is a much better solution over putting out a general advantage and hoping an interested party will happen to view it.

Marketing research and new innovation: Marketers found out that there is another use for behavioral targeting aside from online ad sales. They found out that it is a good way to do some research and figure out the kind of people that buy their products; for example, what else are their clients interested in aside from their products.Behavioral targeting also opens new strategies for the advancement of online advertising. For example, cell phone personalized data shows a lot of useful information, including street location. Combined with online advertising tools, the result is behavioral and geographical targeting, allowing advertisers to know the exact person most likely to buy their product and at the right time.

• CONS

Expensive: Behavioral targeting is twenty to thirty percent more expensive than other traditional online advertising strategies. In order to see segment marketing work often a times a company needs to rework itself from the management level up and invest in either consultation agencies or a consumer research team. The profits from segment marketing are dependent on how invested and thorough the business is when dividing its market.

Privacy concerns: When the products and services given by the company require privacy, a person may be annoyed and offended if he or she receives an email offering him those kinds of items and services. There are always strings of privacy attached to any information from individual. Conservatives call it spying when those supposed private information were exposed for the purpose of marketing. As for now, targeting is modest because of several privacy restraints. Data-mining technology has raised eyebrows as privacy violation is inevitable for all of these used data without permission. Several scientists have attempted to create tools that would limit databases’ ability to extract personal information. Others suggest proper disclosure; one should limit sharing information to companies on doesn’t trust, and share only personal information to those one trusts.

Does not work for all products: Not all products are compatible. Usually behavioral targeting is more effective for products that don’t have mass appeal. If your products are for senior citizens, for example, it may be a tad more difficult to find viable viewers.Problems with location-based marketing: Location-based marketing is not that popular among the majority. Most of us would prefer privacy with our cell phones. Seeing an ad in our cell phone is not an incredible event. The ad will need to add relevant information to the situation; otherwise users will get the feeling of being spammed.