Search Behavioral Targeting

Microsoft and Google both have plans for using users past search behavior to provide tailored search results, practice commonly known as Behavioral Targeting. While companies like Revenue Science and Tacoda (now part of AOL) use users web surfing behavior on the internet to determine what users are interested in and server Relevant Ads, search giants are using the past search queries and click though activity to determine users intent and show them relevant search results (organic and paid ads).

As these practices become more prevalent no two users will see the same results on search engine results page for same queries, some of this is already happening. In future even the same user might see her results change from one day to another based on what he/she searched and clicked on between those two days.

An example of how search behavioral targeting might work A user looks for hotels in Bahamas and then search for Scuba Diving lessons the next day, she might see the search results (organic and paid) that combine both the queries to show her Scuba Diving Lessons in Bahamas. Yet another day she decides to search for Jamaica. Guess what? Her organic and paid results might show her Hotels, Airfares (though she never searched for it) for Jamaica and maybe Bahamas or even some other Caribbean destination. She might also get results for local Scuba Diving lessons. So why will the search engine showing all these results when user never explicitly searched for them? Search engine is trying to determine user’s intent based on what user searched for and then show the customized results based on the intent. In this case the user’s intent is clear; she is looking to go somewhere, most likely in Caribbean. Since she is searching from a geo location other than Caribbean, she might need flight and hence airfare might be shown. She has already indicated she needs Hotel and is looking for Scuba diving lessons so her search results are related to those keywords as well. Once the intent is determined search engine can show can show customized results for a particular user. As the user searches more her intent become even clearer and the possibilities of how search results can be customized for this user are endless.

Last July Google started using immediate search queries to show targeted paid search results. Google is now expanding the time frame that it uses to look for search queries. Here is what NYTimes.com reported on Google’s plan:

Nick Fox, a director of product management who looks after ads on Google’s search site, said the company was now testing the use of more search queries in its ad targeting. He did not describe how it was doing that. But Internet experts said that it was most likely using its cookies.
Mr. Fox said that Google’s approach was different from what Yahoo, AOL and others call behavioral targeting. Those companies look at what a user did a few days earlier to show them ads about the same topic today. Google says it believes that search engine advertising is most effective if it relates to what the user has most recently searched for.
“We are trying to understand what the user is trying to do right now,” Mr. Fox said. “In some cases, those queries are ambiguous, so you need a little more context.”
Google’s previous system of looking at a user’s immediate past query was not useful enough, he said. “It is probably not just the previous query that matters,” Mr. Fox said. “You want to know if the user is still doing the same thing. You wouldn’t want to go back a month. You wouldn’t want to go back a day. But you may want to go back two or three queries.”

Microsoft plans to take it one step further and expand the “behavioral targeting” to the organic search results. Here what is what CNET reported:

Specifically, the company believes examining a full sequence of user queries can lead to more useful results. Today, the company only keeps track of the immediately prior search, but often users use search engines to explore subject areas broadly, said Satya Nadella, senior vice president of Microsoft’s search, portal and advertising platform group, at the Search Engine Strategies conference.
“I believe this notion of understanding user intent–being able to analyze (search queries) and come up with search patterns and use them to shape the search experience–is one of the most important areas for us,” Nadella said.

Recently Behavioral Targeting has been under a lot of fire from privacy advocates and lawmakers. It will be interesting to see how privacy police reacts to search behavioral targeting. Though Behavioral Targeting from Revenue Science is anonymous, Search Behavioral Targeting is based on user provided information (search keyword), which can easily be tied to PII information.

I have always advocated an opt-in model for Behavioral Targeting, a system where users give their consent to be tracked and have an easy option to turn the tracking on or off. I believe that Search behavioral targeting makes it even more desirable to have an opt-in model.

Comments? Questions?

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Google Ad Planner

A lot of you might already know that Google announced the release of Google Ad Planner. This free media research and planner tool allows advertisers/agencies to find the Web sites that match their desired target audiences so that they can decide where to spend their advertising dollars.

This tool along with other tools such as Google Analytics Benchmarking, Google Trends for Websites positions Google well in competition with Nielsen , Quantcast, Hitwise and Compete.

I got my account to Google Ad Planner last week and I can tell you that I was impressed. Yes, there are a lot of features that are not there yet but nonetheless this tool is pretty powerful. Using this tool you can find smaller sites to advertise that you would normally not look at.

How does Google Ad Planner Work

1. When you first enter the tool it show you how many total Unique Visitors and Pageviews that you can reach (that is total internet usage) if you advertised on the whole internet.
2. Then you can choose specific country and/or language to narrow down your target audience.
3. Next you can enter any demographic information to further narrow down your target audience. The demographics that are available are gender, age range, education and household income.
4. Finally you can narrow or expand your target audience by particular sites. You have two options in this filter to choose from
   1. any site below
   2. all sites below

   Below is the description of this filter from Google Ad Planner Help.
   Choosing any site below means any internet user in the sample set who meets at least one of the criteria will be included in your audience.
   Choosing all sites below means internet users in the sample set must meet all of the criteria in order to be included in your audience.
   For example, if you specify ‘Site A,’ ‘Site B,’ and ‘Site C’ as sites your audience is likely to visit, then select the all sites below filter, only internet users in the sample set who visit all three sites will be included in your audience.
   If, however, you select the any site below filter, an internet user in the sample set who only visits Site A and Site C will still be included in your search results.

5. Another filter option is to limit your audience to only those sites that are in Google Content Network and the ad sizes these publishers support. This option is very useful if you are limited to using Google Adwords for your media buys.

Apart from Media planning, this tool can be used to do competitive analysis. For example, it can show you what percentage of your users also go to your competitor’s site. It can show you what other sites your competitor’s visitors visit – Good for analysis and then planning your media buy. It can show you the demographic mix of your competitors visitors.

Like Google trends, Google Ad Planner needs to be integrated into Google Analytics. Microsoft Gatineau overlaid some of the demographic data into the web analytics reporting, Google just showed you that they have that data too, plus some more. So it is matter of time when this data will be available in Google Analytics.

Google started using its Monopolistic Powers? Do No Evil?

On Monday, I wrote about Google Trends for Websites, a tool that lets you trend and compare unique visitor counts for websites.

It combines data from variety of sources, such as aggregated Google search data, aggregated opt-in anonymous Google Analytics data, opt-in consumer panel data, and other third-party market research. Remember, a while back Google asked you to opt-into data sharing in Google Analytics, this is one place where your data is being used.

If you don’t want your site to be listed in this tool because you don’t want you competitors to know how you are doing, then how do you opt-out?

Let’s assume that you are using Google Analytics and have opted-in to Google Analytics Data Sharing. In that case Google should be using your Google Analytics data to show your site starts in Google Trends, that is more accurate than any other kind of data (well sort of). So if you do opt-out from Google Analytics data sharing, Google will revert to other sources of data e.g. toolbar, Google search data etc, which means you will still be listed in Google Trends for Websites.

The only way to completely remove your site from Google Trends from websites is by opting-out of Google Search engine by using a robot.txt to not let googlebot crawl your site. Remember, by doing so you will probably loose a good chuck of you traffic, traffic that comes via Google search engine. And why would you do that? In other words, you don’t have a choice. You are opted-in in Google Trends for websites by default and you have no way out. (Note, even if you could opt-out of Google Trends, competitors can still find out about your traffic etc using other services such as comScore but this one is Free so makes your data widely available).

On the other hand Google Properties such as Google.com, Orkut, do not have to follow the same process. According to Google, “We do not show Google.com properties on Trends for Websites. We have policy of not providing interim financial guidance, and have decided not to release Google numbers in accordance with that policy.” Hmmm…what about other companies? Should Google not respect their policy?

Now won’t you call using (abusing) your monopolistic power?

Comments?

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Google Collecting Data on 3rd Party Sites to Target Ads on Google.com?

Is Google collecting data on the 3rd party sites to target Ads on Google.com? A user called “Discovery” on Search Engine Watch Forums reported that Google showed targeted ads (sponsored search results) on Google.com based on this user’s behavior on 3rd party sites (Fry’s, Circuit City, HP.com and Best Buy).

Here is what “Discovery” wrote:

“As far as I knew Google’s PPC was strictly KW search based, then an odd thing happened yesterday.

Without going to Google I had visited Fry’s, Circuit City, HP.com and Best Buy looking for a PC for a family member. After some research on these sites I decided I wanted to look at some comparison engines. I opened up a new browser window and went to Google, I did a search for “Comparison engines”.

My results were very interesting.

Instead of a generic list of comparison engines touting to find the best prices for all products all the advertisements were related to PCs! Specifically HP PC’s! I had not done a search on Google at any time for PCs, or on their shopping site.

Is Google using behavioral targeting already? I had heard there were announcements that this would happen with the acquisition of DoubleClick, but I have had no notice that it was in practice?

If it is being tested, how does this type of advertising effect the KW advertisements that are competing with it?”

So the question is “Is Google doing Behavioral Targeting on Search results using visitors behavior off the search engine?”

I have written quite few blog posts on this topic and have always believed that Google will get into Behavioral Targeting sooner or later.

It started “in-session” behavioral targeting on the Google search engine, which uses a user previous search query and combines with current query (both in same session) to provide sponsored results on the SERP (search engine results page).

This person noticed that Google was using more than search data to target sponsored results on Google SERP. The kind of behavioral targeting that this person is talking about can only happen if:

1. Companies such as Best Buy, Fry’s, etc share their data with Google and allow Google to tie the users behavioral data collected on their site with other data that Google collects about those users (using a common cookie or some other common identifier).
   For this kind of data sharing to happen, Google (or Doubleclick) code has to be implemented on the pages (or servers) on those sites. I did not find any code, but it is possible that the code is there because if these sites are doing online advertising using Doubleclick then they must be putting the code to measure the success of these online ads. However, I highly doubt that they will let Google (Doubleclick) use the data collected on their site to power Google Search results unless Google is using the data to put their ad in front of users. Think about this. Why would Best Buy allow Google to use its data and allow it to show Circuit City’s or some other competitor ad?
2. Google collects this data via a toolbar or some other application that tracks user across the sites and on search engines.
   This sounds like an option that might have been used to collect data, if Google really did do Behavioral Targeting. I am not sure if the user had a Google Toolbar installed. If the user did have a Google Toolbar, then Google could collect the data (and it does) and can use it anyway (debatable) (as long as they state so in their privacy policy). In this case, Google does not need to seek permission from Best Buy or Circuit City, because user, by installing the toolbar (and accepting the terms), is giving permission to Google to collect the data.

This brings up few more questions.

• Who owns the data? It is up for debate.
• Is it fair to Best Buy or Circuit City or any other site owners? That is a question that needs a bigger discussion.
• Does Google has power and scale to collect data across sites and do targeting? Absolutely.

Comments?

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Google Analytics Data Sharing

Google Analytics has an option to allow you to share your analytics data with Google in return for services like Google Benchmarking and enhanced ad features that will be released in future. Google provides following two options for data sharing.

1. With Google products only

   What do you get with this option? Enable enhanced ad features and an improved experience with AdWords, AdSense and other Google products by sharing your website’s Google Analytics data with other Google services. Only Google services (no third parties) will be able to access your data.

2. Anonymously with Google products and the benchmarking service

   What do you get with this option? Enable benchmarking within Google Analytics by sharing your website data in an anonymous form. Google will remove all identifiable information about your website, combine the data with hundreds of other anonymous sites in comparable industries and report aggregate trends in the benchmarking service. Google will also use this data in anonymous form to improve our products and services.

Since companies are concerned about their data, the first question that most of them are asking is “Should we share data with Google and how will the data be used?”
In this post I will provide my views on Google Analytics data sharing service. Please note that I am not associated with Google or any Google entity and have not worked with them in any capacity. These are my views only, based on my past experience with Analytics , Online Adverting and Behavioral Targeting companies and services.

So what do I think?

As I had written in past, Google will be entering the Behavioral Targeting space. For it to realize full power of Behavioral Targeting it will need to aggregate the data it collects from sites across the web via its various services such as Google Toolbar, Adsense, Adwords, Google Analytics, YouTube, Google Checkout, Google Optimizer etc. Since there is so much concern about privacy and data usage by Companies like Google, it will create a lot of problem for Google if they just start aggregating all this data. To make sure Google is easing these concerns about how Google can use the data it collects from its services, in particular data from its business oriented services such Google Analytics, Adword etc , it has to seek permission from the site owners (and visitors).
Google is starting this with Google Analytics. It is asking your permission to allow them to aggregate your Google Analytics data in return for some free services such as Benchmarking and others services yet to come.

Option 1

Let’s start with Option 1 “With Google products only”. The description of this option can be interpreted in the following two ways

1. If you chose this option your Analytics data will be shared by other Google services that you use. This data will only be used to enhance Google products, Adwords, Adsense etc. used by you using your Google Analytics data. So they are asking you to opt-in into tighter integration of these products (sort of like Omniture genesis). Your data will not be shared with any other company or used to enhance Adwords or Adsense for any other company.

Or it could also mean

2. Your data will be used at an aggregated level to enhance Adwords, Adsense or other Google products to help Google. This is along the lines of Behavioral Targeting. Say you operate an online golf store. You have some buyer who frequently come and buy products from you. Google knows a lot about those users (e.g. they buy golf balls on regular basis and hence are avid golfers). When these users goes on another sites that serves Adsense ads, Google can serve ads about Golf balls or other Golf products even though that site might have nothing to do with Golf, but it knows that these visitors are avid golfers and are more likely to click on golf ads. Now these ads could be yours or of your competitors, you won’t know. Also Google will be able to charge more as they will allow advertisers to reach the right target customers, a great deal for the advertiser and Google. This raises 2 main questions (and maybe a lot more).
   1. Why should you allow Google to use your data to power your competitors’ ads and hence loose customers?
   2. Why should you allow Google to charge more for targeting based on the data that was collected on your site? Shouldn’t you get a piece of it?

Option 2

“Anonymously with Google products and the benchmarking service” has the following two components

1. Benchmarking: Most of the companies want to benchmark and see how they are doing compared to other companies in their vertical, size etc. This sort of data is usually available from companies like Nielsen Net Ratings, Comscore, Hitwise, Compete for a fee. Realizing the needs of consumers Google Analytics is providing this service as an option in Google Analytics. The data is anonymous and aggregated so I don’t have a problem with letting them use my data and provide me free benchmarking data. (Note: I had talked about them entering this space in my blog post, on April 13 , 2007 ( “Google and Behavioral Targeting” , way before they released the data sharing services).
2. Google Products: Even tough Google is saying that it will make the data “anonymous”, what it really is saying is that it will remove information about your site from the data (the site where data is collected). In nutshell, I think this still refers to the same type of data sharing as mentioned in point number 2 of Option 1 (above) so I have same concerns as I already mentioned.

So what should you do?

It depends on your situation.

Option Number 1: If it is really to help you better your ads and optimize your site and conversion then you should opt-in. At this time it is not clear. I would say opt-in for a less strategic site (if you have multiple) and see how it works then you can always opt-out if it is not what you expect. I will of course blog about it in future on how they actually use the data.

Option Number 2: For now, in my opinion, you are ok with sharing your data to use Benchmarking services. You can always opt-out later when Google starts to use this data to power Adwords and Adsense.

User Privacy

Even though Google is making the data anonymous it is only referring to privacy of the site not of the individual visitors. It is up for debate who owns the data, the visitor, the website where data is collected or third party tool like Google Analytics. They are asking your (site owners) permission by asking you to opt-in to data sharing. To ensure Google covers all it bases when (note I did not say IF) they decide to behavioral targeting based on all the data collected they will seek to get user permission too (or I think they should).

Privacy policies are different in different countries so you should comply with local privacy policies before allowing Google to aggregate data collected on your site. It is always a good idea to clearly mention in your sites’ privacy policy how you are allowing 3rd parties to anonymously collect and aggregate the data for Benchmarking and other marketing services.

Comments? Questions?

Move over Google Analytics here comes Yahoo Analytics

I am sure a lot of you heard last week that Yahoo got into the analytics field with purchase of IndexTools. At that time it was not clear if Yahoo will continue selling IndexTools for a fee or will give away the tool for free like Google Analytics and Microsoft Analytics (Gatineau or what ever they are calling it these days).

I speculated, in my blog post, that Yahoo will (or should) give away this tool for free. In my mind the advantage of giving away this tool was clear. IndexTools is superior in functionality to Google Analytics, it is far more advanced and rivals tools like Omniture and Webtrends. A free offering from Yahoo would put them in the driving seat of the web analytics world. This free tool will also help them sway marketing dollars that would have otherwise gone to Google.

Another huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!! and something that might be of interest to both Bassel and Usama of the Strategic Data Solutions group of Yahoo (the group that IndexTools will roll into).

(Sidenote: Both Bassel and Usama were founders of digiMine, the company I used to work for, which rebranded to Revenue Science, one of the leading Behavioral Targeting networks. It could be there opportunity to build a huge Behavioral targeting network which could easily be bigger than Revenue Science.)

In my opinion giving the free tool was the way to go.

Well, this morning Dennis R. Mortensen, COO of IndexTools wrote on his blog that Yahoo will indeed offer IndexTools for free.
He also claims that IndexTools offers 80% of Omnitures functionality. So you get 80% of the functionality for Free.
I am sure executives at Omniture, WebTrends, Google Analytics, MS Analytics are scrambling right now to figure out what this all means to their business.
Let’s just say this for now – It will have an impact.

I also had some speculations about web analytics market consolidations in my last blog post. This move by Yahoo and IndexTools is a huge step toward making my speculations a reality.

Here is what I wrote in my previous blog post:

A free offering from Yahoo will change the Web Analytics landscape. If yahoo is smart they will make index tool available for free as soon as possible. I will replace GA with IndexTool in a heartbeat (as I don’t tie my Adwords to GA).

So what’s next?

Here are few scenarios

Scenario 1

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Microsoft will need to step up its offering quite a bit (considering the deal with Yahoo is not happening), they should buy WebTrends. Webtrends is built on MS technology and provides far more functionality than IndexTools (Let’s call it Yahoo Analytics). Which will make Microsoft the leader, Yahoo second and Google third in web analytics capability.
3. Now, Google won’t stand still. They will use their stock power to buy Omniture and replace Google Analytics with Omniture.
4. Which will make Google the leader once again, Microsoft second and Yahoo Third
5. Microsoft then buys Yahoo and it will be down to two Google and Microsoft. We won’t have one clear leader as both will be close.

Scenario 2

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Considering Microsoft’s intent to buy Yahoo, Google will spring into action and buy Webtrends and Omniture.
3. Which will make Google the leader once again, Microsoft second and Yahoo Third
4. Microsoft then buys Yahoo and it will be down to two Google and Microsoft. We won’t have one clear leader as both will be close.

Scenario 3:

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Microsoft will need to step up its offering quite a bit (considering the deal with Yahoo is not happening), they should buy WebTrends. Webtrends is built on MS technology and provides far more functionality than IndexTools (Let’s call it Yahoo Analytics). Which will make Microsoft the leader, Yahoo second and Google third in web analytics capability.
3. Oracle, which is on the sidelines but one Web analytics company recently, jumps into action and buys Omniture and makes it free.
4. Which will make Oracle the leader once again, Microsoft second and Yahoo Third and Google the fourth.
   
5. Microsoft then buys Yahoo and it will be down to three Oracle, Microsoft and Google.

Some other combinations of the above are also possible. Also, there is a possibility of AOL and some agencies getting into the action but you get the idea that the consolidation will continue.

What do you think?

Web Analytics Industry – Consolidation Continues

Last month I wrote about ZeroDash1 and IndexTools getting into partnership. Few days later we (ZeroDash1) were acquired by Ascentium, a marketing an technology company based in Bellevue, WA.

Now IndexTool has been acquired by Yahoo.

“Yahoo! believes that the ability to generate the most valuable and relevant insights is essential to seizing market opportunities and creating successful campaigns,” said Bassel Ojjeh “We expect that the IndexTools’ technology platform will provide our customers the opportunity to more quickly uncover and act on these insights, enhancing Yahoo!’s status as a partner of choice in online marketing and the must buy for the world’s advertisers.”

I am not sure if IndexTools will continue to offer its tool for a fee (as it is today) or become a free webanalytics tool like Google Analytics. I think that Yahoo will take the route of Google Analytics and Microsoft Gatineau and make it a free tool. IndexTool is, however, a better tool in terms of functionality it offers compared to Google and Microsoft’s tool.

A free offering from Yahoo will change the Web Analytics landscape. If yahoo is smart they will make index tool available for free as soon as possible. I will replace GA with IndexTool in a heartbeat (as I don’t tie my Adwords to GA).

So what’s next?

Here are few scenarios

Scenario 1

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Microsoft will need to step up its offering quite a bit (considering the deal with Yahoo is not happening), they should buy WebTrends. Webtrends is built on MS technology and provides far more functionality than IndexTools (Let’s call it Yahoo Analytics). Which will make Microsoft the leader, Yahoo second and Google third in web analytics capability.
3. Now, Google won’t stand still. They will use their stock power to buy Omniture and replace Google Analytics with Omniture.
4. Which will make Google the leader once again, Microsoft second and Yahoo Third
5. Microsoft then buys Yahoo and it will be down to two Google and Microsoft. We won’t have one clear leader as both will be close.

Scenario 2

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Considering Microsoft’s intent to buy Yahoo, Google will spring into action and buy Webtrends and Omniture.
3. Which will make Google the leader once again, Microsoft second and Yahoo Third
4. Microsoft then buys Yahoo and it will be down to two Google and Microsoft. We won’t have one clear leader as both will be close.

Scenario 3:

1. Google Analytics, Microsoft Analytics (and some other tools) will not be able to compete with IndexTools free offering.
2. Microsoft will need to step up its offering quite a bit (considering the deal with Yahoo is not happening), they should buy WebTrends. Webtrends is built on MS technology and provides far more functionality than IndexTools (Let’s call it Yahoo Analytics). Which will make Microsoft the leader, Yahoo second and Google third in web analytics capability.
3. Oracle, which is on the sidelines but one Web analytics company recently, jumps into action and buys Omniture and makes it free.
4. Which will make Oracle the leader once again, Microsoft second and Yahoo Third and Google the fourth.
5. Microsoft then buys Yahoo and it will be down to three Oracle, Microsoft and Google.

Some other combinations of the above are also possible. Also, there is a possibility of AOL and some agencies getting into the action but you get the idea that the consolidation will continue.

If any one of the above scenarios happen then Ian Thomas will be proven right, when he said in 5 years web analytics will be everywhere and all web analytics software will be free. I disagreed with Ian in my response to his prediction, but I also did not deny the possibility of web analytics vendor aggregating the user data across sites and then using that to provide targeted advertising and in return providing the tool for free.

What do you think? Comments?

Side Note: The interesting thing is that IndexTool will become part of Yahoo!’s Strategic Data Solutions. Bassel was one of the co-founders of my ex-company digiMine (which is now called Revenue Science).

Video Analytics by YouTube

YouTube launches analytics for the video providers (user, partners and advertisers). According to Google Blog, this tool (service) called Insight will initially allow video providers statistics such as

• How often videos are viewed in different geographic regions
• How popular a video is relative to all videos in that market over a given period of time
• Data on lifecycle of the videos, like how long it takes for a video to become popular, and what happens to video views as popularity peaks

According to YouTube blog,
“We’ll be making new features and additional information available fairly quickly — like a specific breakdown of how viewers discovered the video”

YouTube videos are embedded in several sites and blogs, so it will also be nice to see what sites, blogs etc. are embedded the video on their site and on what pages.
Some bloggers, TV news and news sites are claiming that YouTube will track and show at individual level i.e. show the name, IP of an individual who watched the video. I believe that YouTube has such data (when you consider tying Google Accounts with YouTube) but I do not believe that YouTube will reveal that kind of information in the Video Analytics, as it could result in all sorts of privacy issues.

I expect Google (who owns YouTube) to integrate these services with Google Analytics. Not only will video providers able to see the stats mentioned above in one interface but all see the impact of videos and visitors driven by these videos on their site and hence make better decision for future video productions and promotions.

Thoughts? Comments?

Ad Targeting on Gmail appears to be using more than just Gmail data

There has been a lot of speculation about how Google will use all the data that it collects about visitors to its various services. Last year I blogged about how Google can use data it collects on Gmail, Google Search, Adsense, Adwords, Google Analytics etc. to do Behavioral Targeting and then continued with few more posts on Google and Behavioral Targeting. Google was first denying the whole notion of it getting into Behavioral Targeting but last year they introduced Personalized Search using Web History and then introduced in-session targeting on their Search Engine Result Page (SERP).

Now, it’s Gmail’s turn.

Users of Gmail are used to seeing text ads on the side and top of their Gmail mailbox. These text ads are based on the content of the email that a user is reading or gets. I was surprised when I recently saw an ad that was neither relevant to the emails I get nor relevant to my Gmail profile. It was however relevant to some of the search made in past by me on Google and relevant to me (maybe), which Google could have guessed from my name (maybe).

The ad I saw was from a Travel Company that specializes in tickets to India, and interestingly the ad was in my native language “Hindi”. Yes that’s right, the ad was in “Hindi”. My Gmail account, on which I got this ad, is for my semi-business use and never get any personal emails other than from my wife, who uses SeattleIndian.com email address. But I have never got an email in “Hindi” in this account. My conclusion is that Google pulled my name, Web history from Google Account (that includes Google Searches, none of which resulted in me viewing “Hindi” pages) and SeattleIndian.com email address to conclude that I might be interested in an ad from an Indian Travel Agency. None of my searches or my emails will indicate that I know Hindi so it was purely a speculation by the Google Advertiser or Google to think that I knew Hindi.

Here is the ad that I saw

Have you seen something similar? Comments? Questions?

Behavioral Targeting and Affiliate Marketing

Behavioral Targeting (BT) provides a great opportunity for Affiliate Marketers and Networks to reach right customer and increase the conversion.

What is Affiliate Marketing?

Affiliate Marketing is way for advertisers to reach potential customers and only pay when a visitor takes some predefined action. Predefined actions range from a sale to registration. Recently Pay Per Click has also been added to affiliate programs. Generally, the website (publisher) places an advertisements on their site and when a predefined action results by a visitors referred (clicked) by that ad, the advertiser pays the publisher a % or a fixed amount. I won’t go into further details of affiliate marketing but you get the idea.

As you know now that one of the major benefits of Affiliate programs is that an advertiser gets an inventory on publisher’s site without paying anything. Advertiser only pays when a visitor becomes a lead or a customer. This is like sales people on commission only program.

However there is even bigger benefit than just getting free inventory. The ability to put an ad serving (and tracking) code on these affiliate sites (publishers). Just think about how many sites Amazon, eBay, commission junction, linkshare etc. have their codes on. Amazon was the one of the early advertiser who realized the power of Affiliate programs. Google, not matter how you look at it is also a type of affiliate program, in most case advertisers get free inventory and only pay when a click happens (and now Google has pay-per-action program which is true affiliate program).

The widespread tracking code on the internet provides a huge opportunity for affiliate networks and advertisers (like eBay, Amazon) to engage in behavioral targeting and reach potential customer with the right message at the right time.
Let’s take a look at a scenario to further understand how this can work.
A user visits eBay and looks at certain products and bids on a camera but lost the bid. Next day eBay gets another seller who is selling the same camera. How can eBay reach the user who lost the bid? Well one way is they can send her an email (She might not be actively checking my email). Second is tell the about that camera when she come back to eBay (that might be too late). Third is they can use their affiliate site to put that camera offer right in front of her if she happens to visit any of the affiliate site (and there are a lot of them). She has shown interest in the camera so why not use your affiliate code to put the right offer in front of her. The code is right there make use of it. Some might argue this is crossing the privacy line but that is whole another issue to discuss.
Amazon already does similar targeting by its Omakase links but it is not true behavioral targeting. They use the keywords or browsing history which goes back since they day they were born. I see offers from Amazon that are not even relevant to me anymore, they were at one time but Amazon still thinks I am interested even though I have not clicked on those products in years.

Affiliate networks like Commission Junction and Link Share are in great position (eBay uses Commission Junction). They know what kind of sites a visitor (or customer) visits, what kind of products/offers he/she is interested in by looking at their click or purchase behavior. Can’t they just automatically put offer s/products in front of customers?

The way most of the affiliate networks work today is not very efficient for any of the parties involved. They need to step it up a bit. Here are my thoughts on all parties involved how Behavioral Targeting (BT) can help them.

Publishers: A publisher has to decide what advertisers they want to sign up for, this is their guess on what will work. I have spent months trying to figure out what will work for my customers. Also then the link generation process is so difficult. Say a publishers sign up as an affiliate for Resaturant.com (check out SeattleIndian.com, it has restaurant.com banner), now the publisher has to go find the products that are relevant to their customers if they want to target with right banners. In this case maybe it is restaurants in Seattle. It is such a pain that majority of publishers don’t want to deal with it and just put a generic banner. Won’t it be nice if CJ or Restaurant.com in this case was able to put the right offer based on Geography and other browsing behaviors on either CJ network or Restaurant.com site itself?

Customers (visitors): Customers (Visitors) don’t have time, they will only click on ad which will be relevant to them. A generic message from Resturant.com or eBay or Amazon is not enough. Show them a message which will make them click right away. If a customer has already been to Restaurant.com and looked for Indian Restaurants in Seattle and now when the customer is in Seattle (Geo location) surfing on this affiliate site, why show her a generic message? Why not show her offers for Indian Restaurants?

Advertisers: Even if advertisers are getting free inventory now, it is not going to last. Inventory is limited, publishers are going to replace their banner with something that will make them money (AdSense has replaced several affiliates). So grab this opportunity. Put relevant message, gone are the days when generic message would have worked (did they ever worked though). Use the browsing behavior on your site (or a behavioral ad network, your affiliate network will have to offer behavioral targeting soon) to target the right messages.

Affiliate Networks: Why are they still operating using the old model where they make the publisher s guess what products or offers will work for them (Google is following this model too with their pay-per-action model). Why can’t you let publisher put some generic code on their site and then serve ads based on user behaviors? I have seen a lot ads sitting on a publisher site not generating any sales, few clicks, who is benefitting from all this? Not the affiliate network. Not the publisher. Advertiser? May be. Visitor? May be. Now if you had placed a right message (determined from user past behavior) then chances are that all of the parties involved will benefit. It is worth trying. Test it. Use the data you collect, the data from advertisers’ site, the data from publishers’ site. It is not going to be easy but it is doable. Acquire a behavioral targeting company, use their technology and network too.

Affiliate marketers and networks have a huge opportunity to cash in using Behavioral Targeting. They just have to move fast.

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