What is Targeted Advertising?
Targeted advertising is a way in which marketers present consumers with Ads that reflect specific traits, interests, and behaviors. This is done by using customer data to segment audiences by factors such as demographics, shopping interests, browsing behavior, and by creating unique advertisements tailored to each audience segment.
Targeting advertising is also a tool to cut through the noise of advertisements that user experience, and serve personalized content that users can see and engage with. It also includes re-targeting, and personalization and encourages the customer down the conversion funnel.
Benefits of Targeted Advertising
Deliver a higher level of personalization
Ad personalization is very crucial to digital marketing, also due to the well-documented effects on customer acquisition and retention, click-through rate (CTR), and customer lifetime value (CLV). Targeted advertising allows brands to send different messages to different customers based on what the brand knows about the customer.
Establish brand awareness and increased brand perception
If a brand’s Ads are generic or poorly placed, customers will notice. Also, brands can improve their reputation by presenting them with relevant Ads and valuable content. This is also an essential aspect to brand awareness advertising. This helps boost recognition with high-value customers and establish the brand with strong brand equity.
Streamline marketing efforts and keep resources focused on growth
Generic advertising is low-reward and often costly relative to its concrete benefits, but targeting helps focus resources on the most rewarding audience groups. Paired with basic automation to publish ads that fit each audience segment, targeted advertisement takes much of the legwork out of finding high-potential customers and attracting them to the brand.