Purchase Based Targeting

Purchase-Based Targeting is how marketers use purchase information on what a customer has bought previously to help inform the market more effectively in the future. It tailors campaigns to maximize the chances that they buy again.

In the world of retail and CPG (consumer packaged goods), it is important to note that purchase based targeting could mean several things. For example, a CPG company may say I'd like to deliver an offer to consumers who buy from a particular retailer, bought products similar to mine in the last 90 days, but did not purchase my product.

There are companies out there like Catalina Marketing who can satisfy that use case scenario and sell brands based on marketing campaigns people are looking for. By using prior sales information on customers working with retailers and their loyalty card data, brands are able to provide offers to various types of customers. For example, customers who bought similar type products but not that particular brand.

Some digital marketers are using their purchase history and their purchase data on customers to create models for building audiences that they can create ads for. If a car company knows that a similar buyer bought “x-y-z” from them in the past, they can create a much more effective campaign, reaching them with criteria to make sure that they expose you to very relevant things. That’s purchase based targeting in a nutshell.

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