Digital Marketing

Put Down the Cookie, Reach for IP Targeting

IP Targeting Vs. Cookie-Based Advertising

Author

Kayla Kelly

Marketing Manager at Database Marketing Group

Thursday, January 30, 2020

SMS: Why and How You Should Be Using it in 2020

Do you really know someone based on their browsing history? Since the early days of the WWW, Advertisers have been using your internet search history to create a “profile” of you that includes which businesses you frequent, what your consumer interests are, whether you are a parent or a student, and so much more. But the truth is, sometimes what you search for on the internet doesn’t mean you’re in the market to buy. Therefore, what you search for doesn’t tell the “true” story of how you are profiled on-line.

Have you ever searched for something on Amazon, and then logged onto Facebook just to be hit with an ad for the same or competitor product? Well, the truth is – that’s not a coincidence, that’s a cookie.

What is a cookie?

Every time a new visitor comes to a website, a small, unobtrusive piece of Javascript code, often referred to as a pixel, drops an anonymous code onto their website server. The new visitor is then, for lack of a better word, ‘cookied’ by data liaison companies, who then sell that data to marketers. This is called a third-party cookie. When consumers leave the site to surf the web, a cookie notifies advertising platforms to tailor the ads served based on the specific pages they visited on that original website.

This all sounds very intriguing for marketers, but think about your own browsing history. Have you ever looked up a product that you have no use for, but searched it just out of curiosity? Can browsing history really paint an accurate picture of the type of person you are as a consumer?

Here’s a case study we’d like to highlight about the reality of cookies:

SMS: Why and How You Should Be Using it in 2020
Want to know more about your online profile?

While cookie targeting seems like a good approach, there are many wasted dollars spent in this channel due to inaccuracies in targeting applicable sites. The biggest culprit of fraudulent/inaccurate data: Bot Traffic.

Bots drove nearly 40% of internet traffic last year – and the bad ones are getting smarter.

  • Bots made up roughly 39.7% of all Internet traffic. In 2018, one in five website requests or 20.4% of traffic was generated by bad bots alone (ZD Net 2019)
  • Ad fraud via bots costs advertisers over $6 million a month (Spider.io, 2018) New figures released today suggest that ad fraud will cost brands $16.4 billion this year, and that nearly 20% of all digital ad spend will be wasted (CNBC, 2019)
  • 1 in 5 ad-serving websites are visited exclusively by fraud bots (The Verge, 2018)
  • For every $3 spent on digital ads, fraud takes $1 (Adage.com, 2018)

The problem with third-party cookies.

Recently, web browsers like Safari and Mozilla Firefox have started to block third-party cookies in response to their users concerns of privacy. While these browsers have been implementing this for some time now, the newest web browser to join the list is Google Chrome. Chrome announced in January 2020 that for the next two years they will be phasing out third-party cookies. With Chrome being the leading web browser, with 60% of the global internet users, this announcement greatly affects all marketers who rely on third-party cookies to reach their target audience (CNN.com, 2020).

Eliminate the waste and target the real consumers who are ready to buy.

As a result-based targeted marketing agency, DBMG works with our clients in channels that can successfully deliver 1:1 messaging to the consumer who is qualified and in-market to purchase. Through the advancement of technology and development of our database cleansing processes, we are able to deliver hyper targeted messaging to consumers using IP Targeting.

So, what’s the difference?

Cookie-based retargeting uses web browsing data while IP Targeting uses physical data attributes.

IP addresses are appended to physical addresses, and by associating a unique IP address to an individual household, more precise information can be gathered and used to create and deliver a hyper targeted ad, on any device associated to that address (mobile or desktop).

Here are some effective ways Database Marketing Group uses IP Targeting:

  1. Matching a physical address to an IP Address gives you the ability to see if people visiting your website are actual customers that live near your target location then serve up direct marketing and digital display to the most applicable households within a geo-framed geography. The 1,2 combo of direct marketing and digital is our most successful approach of engagement utilizing on-line and off-line.
  2. Reverse IP Append with Direct Mail Retouch. When someone visits your site, you can capture their IP address and as mentioned above, we append their home address. We can then follow-up with a direct mail piece to that address if they fall within our client’s target market.
  3. Geo-framing competitor locations. Anytime a consumer is within a target area you can capture their device ID which can be matched back to an IP address, allowing you to retarget them with your own digital display ads and direct marketing as a competitive blunting tactic.

Learn more about our custom targeting capabilities and various marketing initiatives at DBMGroup.com or get in touch with our sales team.