One provider's definition of targeting can vary markedly from another's. Find out what to consider when choosing the partner that will work best for you.
If you are considering behavioral targeting vendors, you know that the variety of platforms and alternatives is enormous. From ad networks to publishers to boutique behavioral targeting (BT) data set providers, there are literally dozens of companies offering some form or another of this powerful marketing technique. It can all be a bit daunting.
Choosing from this massive range of alternatives is also getting tougher because what one company calls "BT" can vary markedly from what other would-be partners offer.
To make selecting a BT provider easier, here are six questions to ask each potential partner. These questions are focused on some of the most important "key success factors" that make a behavioral solution potent. Using the answers to these queries, you may be able to simplify the first cut or two of your vendor selection process.
1. What is the reach of the BT solution, in uniques as well as in estimated consumer "touchpoints"?
Reach is critical for BT because your messages will only be relevant to a portion of the total audience. The more people reached by a vendor, the larger the potential audience for your targeted messages within their audience. This is not to say that niche BT solutions aren't good, but rather that identifying those with the largest number of your prospects makes sense in for your first partnership. In some verticals, a small overall provider may be able to provide a larger number of your prospects than the massive ad networks. But generally, size is good in BT.
Further, BT becomes more and more accurate with more data points per consumer. By understanding both the number of consumers reached and the approximate number of "touches" per day that a BT offering makes with consumers, you can develop a better understanding of the economic value of their solution. This is increasingly important as cookie deletion becomes more commonplace; solutions with hundreds of daily touches per consumer rebuild consumer profiles more quickly.
2. What are the relevant behavioral categories for my brand? Does the vendor have success in my vertical?
Most BT solutions work by "bucketizing" consumers into behavioral groups. Your ads get fielded to the most relevant segment for your category -- ideally a "bucket" specifically designed for your category. Even better, some of the largest BT providers have buckets that distinguish between "enthusiasts" and "intenders." For example, since there is a difference in the likelihood of purchase for an in-market car buyer vs. a "gear head", the ability to create a message that distinguishes the two can be important.
Also, seemingly similar platforms can have wildly different success rates by category. Working with a partner that has a strong track record in your category can be beneficial.
3. What kinds of data does the vendor use in its BT model?
Some BT solutions focus on a single type of consumer touchpoint, like contextual web pages bearing ads. Others rely on search data, and still others combine search, context, shopping sites and price comparison engines to fill out their models. In my experience, no particular model always wins. But one may make more sense for you and your brand. For example, a model based more on data from contextual pages may make more sense for a considered purchase with a long-lead buying cycle. For an item at a more modest pricepoint, price comparison site data might be most fruitful. Therefore, as you develop a vendor list and test plan, considering the sources of data may prudently narrow your decision set.
4. Does the model customize to my brand over time?
Brands within a category can have very different consumer bases. Consider, for example, the prospect for Amex Gold versus a secured Visa. Understanding whether a BT solution adjusts to the specific success factors for a brand can be very valuable. To continue with this credit card example, does their model "self adjust" to the specific user base of Amex, or does it treat all credit card brands as the same? While this may seem an esoteric concern, you may find that a very different set of criteria apply to your brand than for the average product in the category. If you partner with a first generation BT provider, they may not be able to meet your goals.
5. What about reporting?
Are their reports actionable? BT providers can vary in the extent to which they offer useful and actionable reporting. While much of the "optimization" of a BT buy occurs organically through the platform, your reports should give you actionable insights that can help you refine programs both with that specific vendor as well as with other BT partners.
6. What are the entry costs?
How long will it take to see results? When you are signing on with a new provider, it obviously makes sense to test effectiveness before you commit big dollars. Minimums between providers can vary markedly, as can the amount of time they feel is necessary to see results from a BT test.
While this isn't an exhaustive list of considerations, using these questions as a foundation can help streamline the consideration and selection processes for your brand. If you have other considerations that have worked for you, I would love to hear them in the comments section below. I'd also appreciate hearing what BT vendors think are the most important ways to differentiate between the best vendor and the rest of the pack.
Jim Nichols is senior partner at Catalyst: SF.

