What is online behavioral advertising?
Online Behavioral Advertising (OBA) is a form of targeted advertising that uses data on a user’s browsing habits, purchase history, and interactions to display relevant ads. It helps e-commerce businesses personalize ad experiences, boosting engagement and conversions.
Here are some online behavioral advertising examples:
- Retargeting ads: A user views a product on a Shopify store but leaves without purchasing. Later, they see ads for the same product on social media or Google Display Network.
- Product recommendations: Based on browsing behavior, customers are shown products they’re likely to purchase.
- Dynamic display ads: Ads adjust in real-time to reflect items a user has previously viewed.
How does online behavioral advertising work?
OBA works by tracking a user’s online activities to deliver highly targeted ads. Here’s a breakdown of the process:
What are types of behavioral advertising in digital platforms?
You may have come across one of these 3 most common types of behavioral targeting ads:
| Type | How it works | Example |
| Retargeting ads | Display ads to users who previously interacted with your site or products. | Google Display, Meta Retargeting Ads |
| Behavioral email marketing | Triggered emails based on user behavior (e.g., abandoned carts). | Klaviyo, Omnisend |
| Personalized recommendations | Dynamic product suggestions based on past browsing or purchase patterns. | Amazon’s “Customers Also Bought” |
How can behavioral targeting boost your conversions?
These ads tend to have really high conversion rates, and here’s why:
- Personalized ads reflect user interests, driving higher CTRs and lower bounce rates.
- Retargeting campaigns bring back users who abandon carts or leave before purchasing.
- Tailored recommendations make the shopping experience smoother, encouraging repeat purchases.
- Behavioral ads focus on users who show interest and are prone to buy.
