How Targeted Advertising Works
Targeted advertising has been growing in popularity over the last few years and companies have finally caught on. So how can targeted advertising reduce your marketing budget?
There are multiple ways advertisers target their potential customers. A few of the most used strategies are retargeting, placements, demographics, location, behavioral buying habits, and using the information you've allowed Google and Facebook to use.
The kind of advertising that makes those shoes you looked up earlier in the week follow you around across different websites and ad placements. One of the most effective forms of advertising is retargeting.
Here is how it works: you place a small, unnoticeable piece of code on your website (this code is often referred to as a pixel). The pixel is unnoticeable to your visitors and won’t affect your website’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to only to people who have previously visited your site. (See bottom for visual)
With ad placements, you can choose what websites or pages you want your ads to show on and even narrow it down by where they appear on the site such as only on the top of the page, only on video advertisements or only on 'sports' pages.
Advertisers are able to put together a demographic profile to determine when and where advertising should be placed. They are able to do this by age, gender, income and more to help advertisers gear ads towards a specific demographic.
Behavioral advertising is very in depth and is primarily used in Facebook advertising. This is where you can target people based off of what they already own (cars, phones, home, etc.), what they've shown interest in (search queries, liked & followed pages, website traffic), what their buying habits are, and can get much more narrow as far as relationship status, birthdays, anniversaries, and much more.
This gives advertisers the creative ability to test and target their audiences to optimize their ads and the amount they are spending on their campaigns.
These are just a few ways that advertisers use targeted advertising to reach their preferred audience. If you have any questions, feel free to leave them in the comments or give us a call at 425-289-9960.