Targeted ads are directed at specific segments of the population. The objective is to identify each consumer and assign them a profile to offer them appropriate advertising content.
What are targeted ads?
Targeted ads are nothing new. In fact, whether in newspapers, on television, or on billboards, advertising is generally tailored to a certain audience. A video game brand will prefer to have its ad run during an after-school entertainment program, while a furniture brand may like to advertise during a newscast.
Today’s targeted advertising, however, is mainly on the internet, because it requires data; specifically, user data.
Individuals browsing the internet permit their data to be collected by the different sites they visit. This data allows advertisers to rate their audience and offer brands targeted advertising.
Brands look to target the persons who are most likely to consume the products they offer. The more defined the audience, i.e. the more precise the user profile, the more expensive the targeted advertising will be, because it is relevant. When targeted advertising is successful, the user is shown an ad in real-time that matches their interests. The benefit of targeted ads include:
- Advertising that reaches the right person
- Quality audience
- A lower advertising budget for brands
- Increase in click-through rate and traffic
- Higher ROI
- A user satisfied with the proposals made to him
How does targeted advertising work?
Targeted advertising works through a system of algorithms and data. This data is collected through cookies on each site the individual browses on the web. The algorithm then allows you to define user profiles. Generally, the basic demographic data that is collected includes:
- Age
- Gender
- Location
But algorithms are being perfected thanks to new technologies that allow us to go even further. User profiles are becoming more and more accurate and as a result algorithms will be able to propose increasingly tailored ads, or even predict user behavior in real time.
The different types of segmentation
Websites are collecting more and more data on their users and can therefore define extremely precise profiles for even more targeted advertising.
The main types of ad targeting are:
- Geographical orientation
- Demographic segmentation: age, sex, etc.
- Behavioral targeting, based on user interests
- Contextual orientation
- Segmentation by time: based on the date and time of the connection
Multiple types of targeted advertising can be combined to make ad campaigns even more powerful. For example, a brand might target a young audience aged 15-25 on a Saturday night between 9 p.m. and midnight in the Washington region to promote a new music album.
Tips for effective targeted advertising
For targeted advertising to be effective, there are several criteria to consider. Advertisers need to qualify their audience as much as possible before they can segment that audience. This will make it easier to reach the right person at the right time.
Take advantage of existing customers. To know your goal, you must first trust your current customers. The focus must be on retaining those customers; attracting new ones will follow.
- Run tests, modifying the different parameters. To get accurate results, it is important to change only one parameter at a time. This is known as an AB test. It will allow you to optimize your advertising campaigns.
- Know your target audience. In advertising campaigns, you must know the target. For targeted advertising, this is even more important because if you don’t target properly, your campaign could turn out to be ineffective.
- Don’t be too specific in your orientation. Even though data now allows us to precisely target an ad, it is important to factor in a certain margin, even with the advice already given. If your primary goal is off, you run the risk of your ad campaign failing.
- Draw conclusions from your advertising campaigns. Each targeted ad should be analyzed at the end of the campaign. This is your opportunity to draw conclusions. Is your main objective the correct one? Perhaps you can redefine it, expand it, or clarify it. Also, was your campaign well targeted? You have to feel your way and understand how to change direction in due time.
At Jump Data-Driven Video, a data management platform, designed specifically for video service players, we believe in data analysis that allows you to carry out any type of strategy, including ads directed at a specific target and personalized recommendation addressed to its users.
