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The Benefits of Targeted Advertising


In the past, a company could only advertise via three mediums: television, print and radio.  Their advertising relied on one major hope: the assumption that an individual who watched a television, listened to a radio or read the paper was seeing/hearing/watching that ad.

Much has changed in the age of the Internet. Advertisers no longer have to cast wide nets, hoping to pull in a percentage of those who viewed their ad. Now, those efforts have become much more personal and geared directly toward the interests of individuals. Advertisers now have the tools to collect personal data (mostly through searches) which allows them to pinpoint exactly what concerns the consumer. Let’s examine a few of the benefits in greater detail.

Consumer Benefit: Ads Geared Towards Consumers’ Interests
If ads are relevant to a consumer, they are much more likely to capture their attention and generate sales instead of being skimmed over. For example, if a consumer is listening to country music, they shouldn’t receive an ad for a rock concert, because most likely, they would be more interested in a George Strait concert over Blink 182.

Advertiser Benefit: Eliminate Wasteful Advertising
An advertiser should focus their efforts on certain demographics to maximize the success of their advertising campaigns. Certain demographics such as age, gender and geological location can be selected to hone in on consumers who may be looking for the advertiser’s goods or services. With the help of targeted advertising, an advertiser won’t have to spend money advertising a new car to someone who has Googled “cheap used cars in San Diego.” Instead, their efforts will be focused towards people who are looking to drive away in a brand new car.

Target More Consumers at a Reduced Cost
By eliminating advertising to people who have little to no interest in a particular product or service, sellers can be much more cost effective in placing their allocated advertising funds in a campaign that will cover a higher, yet more specific demographic to improve profitability.

Higher Profits
In the words of successful entrepreneur Kevin O’Leary from ABC’s Shark Tank: “Money has no grey areas. You either make it, or you lose it.” Less money spent on advertising equals more profits for your business.

Take it from the experts. Targeted advertising is one sure way to cut costs and raise profits!