Behavioural targeting (BT) is a technique used in online advertising to monitor users' browsing behaviour in order to provide them with individually targeted advertising. BT uses information about user behaviour such as website visits, search queries, and videos watched to predict consumer interests.
Levis.com was an early adopter of BT, using cookies and web beacons to gather this data from their customers. The effectiveness of such campaigns is “unbelievable,” according to Klaviyo's Devin Bhatia. This simple approach has resulted in a 40%+ open rate, up to 10% click rate, and 30-50% of the revenue of standard email campaigns
There are three main approaches to BT: affinity-based, predictive and re-targeting. Whilst BT can be very effective, it is heavily reliant on data, and this can be problematic. In addition, it has limited use for mass advertising
European law mandates that companies obtain informed consent before using tracking technologies for BT.
However, the effectiveness of informed consent is debatable due to information asymmetry and the prevalence of biases like myopia and status quo bias.
This has led to calls for stronger protection measures, such as data minimisation, transparency regulations and stricter rules around the handling of sensitive data

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