With a host of options, including paid search listings, banner advertising, text ads and not to mention the array of technologies and performance measures, the decisions about where to invest budgets and resources to achieve the most profitable returns can be tricky ones.
How can businesses truly understand what methods are working for them? Placing a banner advert across billions of impressions is sure to hit the right audience, right? How can businesses understand how to reach their core target audiences?
The latest development in targeted online advertising solutions is based on a proprietary algorithm which allows ads to target clusters or groups of users based on the user behaviour of the group. This unique technology allows the delivery of highly very targeted, high performing campaigns for its advertisers.
How does cluster targeting work?
Each web user is assigned to a 'carrier' and a carrier is assigned certain characteristics depending on what sites they have visited or clicked on, and what searches they have done. Keywords which are less common (e.g. tyrannosaurus) will be more significant for clustering than more common keywords (e.g. hotels) and therefore assigned a higher weight.
How can businesses understand how to reach their core target audiences?
The next step is to identify users similar to the carrier or users who have performed similar actions in the same period. These groups are updated on a daily basis. Users within a cluster show similar types of website interaction and by using techniques to measure the statistical significance of the clusters, adverts can be placed directly correlating to the users preferences and user behaviour.
Once the clusters of users are identified, the best time slot is calculated in which to run a campaign. For example, the algorithm can obtain a higher eCPM for some groups in the morning than at other times of the day, so ads can be delivered to this cluster of users during the optimal time period.
What does Cluster Targeting mean for online advertising?
This new way of ad targeting means advertisers no longer need to experiment or guess which sites or which times of day will work best for their campaign. They have a higher chance of running a successful campaign, where the system already knows when and where to place ads for optimal performance.
This is particularly useful for smaller businesses who may not have the budget necessary to continuously experiment until they find the 'right' websites to advertise on. The latest developments are intended to help publishers increase their eCPM and also give advertisers better returns through better targeted online advertising campaigns, without the advertiser having to do anything different.
How can you use this technology for your campaigns?
Simply.com, the revolutionary advertising platform from Dada, a European leader in the online services industry, traditionally used a mix of three different strategies to get the best click through rates for advertisers, and ad delivery is optimized in real time depending on which strategy is working best. The strategies which work best get a higher 'weight'.
- Contextual targeting - analyses the content of pages on the network to deliver the most relevant ads
- Behavioural targeting - profiles web users based on their navigation behaviour determined by anonymous cookies on their browser
- Yield targeting - optimises the campaigns in real-time to place ads on sites which are performing best in terms of click through or conversion
To test the service and find out more visit https://publisher.simply.com/en/index.php?PR=DNB30
