Will Predictive Behavioral Targeting Change Online & Direct Marketing Ways?

MA-Thesis / Master von Raj Pal Singh Kharabanda

Introduction:

Over the time, many Internet users have rejected online advertisement. The reason is that users do not associate with the ordinary advertisement and therefore can not find a connection to it. The products and services shown on websites are not what a particular user wants to have, wishes or needs.

This capstone should emphasize that through 'Predictive Behavioral Targeted' advertisement the insensitivity will be increased significantly in comparison to ordinary online advertisement while talking about WEB 2.0. Advertisement for specific products will be created and developed just for exact kinds of people and not for the mass. That will sell products much faster and companies or advertisement agencies do not have to place unnecessary spots, banners, etc. on websites anymore.

This document will give precise analyzed information and answers to the question if 'Predictive Behavioral Targeting will change Online and Direct Marketing ways in near future'. To understand the principles of online marketing I will explain how traditional online marketing has been established, what kinds of marketing have been used the most, which ones have been most effective, which ones will continue to grow and have a huge impact on our society and its buying patterns.

Table of Contents:

Text Sample:

Chapter 8, Search Engine Marketing:

Search engine marketing is a form of online marketing. This form comprehends all measurements to attract qualified visitors and therefore promote products and buy interests through search engines. An important instrument of this marketing form is search engine optimization (SEO). Goal is it to stand in the top of the organic search through implemented specific keywords on the website. According to surveys just the top ten results of an organic search will be looked at by visitors. Many companies are doing search engine advertisement to fulfill the desire to gain more visitors, traffic, have more sales, obtain more market share and increase popularity. That kind of advertisement that pops up when a user inserts specific words belongs to direct advertisement. Through its interactivity of sending and obtaining information it is also seen as one to one direct marketing. Through new used techniques that kind of area on the Internet is enjoying an increasing reputation.

Optimization of Search Engine Hit Lists:

To increase sales and make more profit through search engine optimization one has to look at ones placement under the hit list. The higher ones link is ranked the higher is the possibility that an Internet user will click on that link and become to a potential customer. One has to be very curious which keywords to obtain and use. Keywords are terms that Internet users insert in search engines. The more concise a user is using keywords, the more precise the result of the hit list will be. If a company for example is using AdWords and has ‘Apartment, Miami, Weekly’ as keywords the company can be sure that it will gain more traffic through these keywords than a company that just has ‘Apartment, Miami’ as soon as the user specifies his search. The amount of money a company is willing to pay for such favorable keywords plays an important role with the click rate as well. The one with a higher spending amount will be usually be ranked higher than someone who has a much smaller spending amount and a way smaller click rate. The click rate is the amount of number users have clicked on a banner, website, advertisement. That click rate will be multiplied by the spending amount and so the ranked will be calculated.

There are many more things one has to look at to obtain a high rank. Meta-Tags are other tools that are important to have but not quite important as having high traffic. Meta-Tags are invisible for users to see. They are imbedded into a website. One has to be careful not using too many meta-tags on a website then too many can be seen as negative to a search engine. To increase ones rank it has to be looked at the website itself and determined which links to keep and which ones to eliminate. Useless Flash animation and too crowded places have to be taken out. Flash animations are difficult to be looked through by search engine spiders. Link exchange with other websites that have high traffic will be seen as very useful, increase traffic and popularity. The exact algorithm of search engines is strictly confidential and for some search engines it is continuously changed. This business model is highly profitable for search engine companies.

Page Rank by Google:

A tool that website owners can use to see how effective and important ones website is, is Page Rank. Page Rank is a link analysis algorithm. This tool can be found at the Google Toolbar. Page Rank gives a user an idea how useful the page is s/he is looking at. Page Rank has a scale from zero to ten; where ten is the best. In very simplified words: the Page Rank given to a website is calculated through the importance in the World Wide Web, the different links forwarding to the page and link exchanges. The name Page Rank has been patented by Google and in coordination with ‘The Stanford University.’ Page Rank has been established by Larry Page at the Stanford University in 1995.