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What is behavioral targeting? Well, quite simply, it is advertising to Web users based on their previous behavior or activity on the Web. It is the process of identifying potential customers based on the searches they have done, sites they have visited, and specific actions they have taken, and then serving them an appropriate ad at the optimal time. The more you know about present and potential customers, the better you are able to market to them. Behavioral targeting technologies monitor and track the sites visited, the content read, and the actions taken by individuals on the Web. This is done anonymously meaning they don’t collect personally identifiable information like name, address, e-mail address, or telephone number.

It is done by way of cookies that are installed on the surfer’s computer as he or she views ads from online advertising networks. The surfer’s actions are then tracked and stored in a database things like Web sites visited, how long he or she stayed on specific content pages, etc. The databased information is then analyzed and used to predict future behavior based on past experience of others in the database. Behavioral ad networks then serve targeted advertising to those individuals whenever they visit a site that is served ads by their network.

Behavioral targeting can be implemented several ways. It can be implemented through a Web site, through an advertising network, or on your computer through adware. Behavioral advertising uses leading-edge, real-time technologies. It is hot because it is targeted and it works. According to a recent Ponemon study, behavioral targeted advertising is projected to increase by 65 percent in 2006.

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