Targeted ads are forms of advertising where online advertisers can use sophisticated methods to target the most receptive audiences with specific properties, based on the product or person the advertiser promotes. These characteristics can be demographics that focus on race, economic status, gender, age, level of education, income level and occupation or they can be a psychographic focus based on values, personality, attitudes, opinions, lifestyles, and interest. They can also be behavioral variables, such as browser history, purchase history, and other recent activity. Targeted advertising is focused on certain traits and consumers who tend to have a strong preference will receive messages rather than those who are not interested and preferences that are inconsistent with product attributes. This eliminates waste.
Traditional forms of advertising, including billboards, newspapers, magazines, and radios, are increasingly being replaced by online advertising. The space of information and communication technology (ICT) has changed over the past few years, resulting in targeted ads to reach all ICT technologies, such as web, IPTV, and the mobile environment. In the advertising of the next generation, the importance of targeted advertising will increase radically, as it spreads to many ICT channels in an integrated manner.
Through the advent of new online channels, the need for targeted advertising is increasing as companies aim to minimize the waste of advertising by using information technology. Most recently targeted new media ads use second order proxies for targeting, such as tracking online or mobile web activity from consumers, associating customer historical web page demographics with new consumer web page access, using search terms as the basis for implied interest, or advertising contextual.
Video Targeted advertising
Jenis
Web services continue to generate new business ventures and revenue opportunities for Internet companies. Companies have rapidly developed technological capabilities that enable them to gather information about web users. By tracking and monitoring what website users visit, internet service providers can instantly display ads relative to consumer preferences. Most websites today use this targeting technology to track users' internet behavior and there is much debate about existing privacy issues.
Search engine marketing
Search engine marketing uses search engines to reach the target audience. For example, Google Google's Remarketing Campaign is a type of targeted ad where a website uses the IP address of a computer who has visited their website to remarket their ads specifically to users who have previously visited their website because they use a website that is part of a network display Google, or when searching for keywords related to the product or service in the google search engine. Dynamic remarketing can improve targeted ads because they can include products or services that consumers previously saw on advertiser websites in ads.
Google Adwords has a different platform how ads look. The Search Network shows ads on 'Google Search, other Google sites like Maps and Shopping, and hundreds of non-Google search partner websites displaying AdWords ads matched to search results'. 'The Display Network includes a collection of Google websites (such as Google Finance, Gmail, Blogger, and YouTube), partner sites, and mobile sites and apps displaying AdWords ads that are matched to content on a particular page.' These two types of Advertising networks can be useful for any company specific purpose, or type of company. For example, a search network can benefit a company with the goal of reaching consumers looking for a particular product or service.
Other ways Ad campaigns can target users is to use their browser history and search history, for example, if the user types in promotional pen in the search engine, such as Google; ads for promotional pens will appear at the top of the page above the organic page, these ads will be targeted to the user's IP address area, showing the product or service in the local area or surrounding area, higher ad position is the benefit of ads that have higher quality score. Ad quality is affected by 6 components of the quality score:
- Expected ad clickthrough rate
- Landing page quality
- Ad relevance/search
- Geographic performance
- Targeted device
If ranking based on these criteria, will affect the advertiser by increasing the eligibility of the ad auction, actual cost-per-click (CPC), ad position, and ad position bid estimate; to summarize, the better the quality score, better ad position, and lower cost.
Google uses the view network to track what users see and to gather information about them. When a user signs in to a website using Google's display network, he sends a cookie to google, shows information about the user, what he's looking for, where they came from, found by ip address, and then builds a profile around them, allowing google it's easy to target ads to users more specifically. For example, if a user frequently signs in to the company's promotional website, which sells promotional pens, Google collects data from users such as age, gender, location, and other demographic information as well as information on websites visited, then users will be categorized promotional products, allowing google to display ads on websites with easy user visits related to promotional products. ( Betrayed by Your Ads! ) These types of ads are also called behavioral ads when they track the behavior of a user's website and show ads based on the previous page or searched terms. ("Targeted Ad Examples")
Social media targeting
Social media targeting is a form of targeted advertising, which uses common targeting attributes such as geo-targeting, behavioral targeting, socio-psychographic targeting, but gathers information provided by consumers on any social media platform. For example, on Facebook if a consumer likes a clothing page, they will receive ads based on the likes of the page and the area they say they live in, enabling advertisers to target very specific consumers because they can determine the city and interests for their needs. Social media also creates a consumer profile and only needs to search for one place, one user profile to find all interests and 'likes'.
For example. Facebook lets advertisers target using broad characteristics like Gender, Age, and Location. Furthermore, they allow for narrower targeting based on Demographics, Behavior, and Interests (see full list of different types of Facebook targeting options).
TV and mobile targeting
Another scope that the advertising target is television. Advertisers can reach consumers who use digital cables, which are classified as Internet Protocol Television (IPTV). This is effective when information is gathered about their users, age, gender and location, as well as their personal interests in movies, etc. This data is then processed, optimized and then advertised consumers accordingly.
Since the early 2000s, ads have gone online and recently in mobile settings. Targeted ads based on mobile devices allow more information about consumers to be transmitted, not just their interests, but their information about their location and time. This allows advertisers to generate ads that can meet their schedules and changing environments more specifically.
Contextual content and targeting
The simplest targeting method is contextual content/targeting. This is when an advertiser places ads in a specific place, based on the presence of relative content (Schlee, 2013). Another name used is content-oriented advertising, as it suits the context in which it is consumed. This targeting method can be used across different media, for example in an online article, about a home purchase will have ads related to this context, such as insurance ads. This is usually achieved through ad matching systems that analyze content on the page or find keywords and present relevant ads, sometimes via pop-ups (Fan & amp; Chang, 2010). Although sometimes the ad matching system may fail, it may neglect to distinguish between positive and negative correlations. This can lead to conflicting ad placements that do not match the content (Fan & amp; Chang, 2010).
Technical targeting
Technical targeting is associated with user software or hardware status. Ads are changed depending on the available network bandwidth of the users, for example if the user is using their phone with limited connections, the ad delivery system will show a smaller version of the ad for faster data transfer rates.
Ad serving systems serve ads directly based on demographic, psychographic, or consumer-related attributes that are exposed to the ad. The system is always digital and must be addressed that the ad-serving endpoint (set-top box, website, or digital sign) should be able to provide advertisements independently of other endpoints based on customer-specific attributes for that endpoint when the ad is served. Therefore, the addressed advertising system should use the consumer properties associated with the endpoint as the basis for selecting and serving ads.
Time targeting
Targeting time is centered around time and focuses on the idea of ​​fitting around the everyday lifestyle of the community (Schlee, 2013). For example, scheduling a particular advertisement in the period from 5-7 pm, when commuting from work is home.
Sociodemographic targeting
Sociodemographic targeting focuses on consumer characteristics, including age, gender, salary and citizenship (Schlee, 2013). The idea is to target users specifically, using this data about those collected, for example, targeting males in the 18-24 age group. Facebook uses this form of targeting by showing ads that are relevant to the user's individual demographics in their account, this may appear in the form of banner ads, or commercial videos (Taylor et al., 2011).
Geo-location and location-based targeting
This type of advertising involves targeting different users based on their geographic location. IP addresses can signal a user's location and can usually transfer locations via zip code. (Schlee, 2013) The location is then stored for users in a static profile, so advertisers can easily target these people based on their geographic location. Location-based services (LBS) are mobile information services that allow spatial and temporal data transmission and can be used for advertiser benefit (Dhar & Varshney, 2011). This data can be utilized from apps on devices that allow access to location information (Peterson & Groot, 2009). This type of targeted ad focuses on localized content, for example users can be requested with activity options in the area, such as where to eat, nearby stores etc. While generating ads from location-based services by consumers can improve the effectiveness of ad delivery, it can cause problems with user privacy (Li & amp; Du, 2012).
Behavioral targeting
This form of targeted advertising centers around user activity/actions, and is more easily achieved on web pages (Krumm, 2010). Information from browsing websites may be collected from data mining, which finds patterns in the user's search history. Advertisers using this method believe it generates ads that will be more relevant to users, so that leading consumers are more likely to be influenced by them (Yan et al., 2009). If the consumer is often looking for airfare, the targeting system will recognize this and start displaying related ads on unrelated websites, such as airfare deals on Facebook. The advantage is that it can target individual interests, rather than target groups of people whose interests may vary (Schlee, 2013).
Retargeting
Re-targeting is where advertisers use behavioral targeting to generate ads that follow users after users view or purchase certain items. An example of this is the store catalog, where subscribers subscribe to their email system after purchase hoping they attract more goods for sustainable purchases. A prime example of repeated targeting that has earned the reputation of most people is the ads that follow users across the web, showing them the same items they see in the hope that they will buy them. Retargeting is a very effective process; by analyzing consumer activities with their brands can address their consumer behavior appropriately.
Maps Targeted advertising
Process
Ads give advertisers a direct line of communication to existing and prospective customers. By using a combination of words and/or images, the general purpose of advertising is to act as an "information medium" (David Oglivy) making the means of delivery and to whom the information is delivered is most important. Ads must determine how and when the structural elements of the advertisement affect the recipient, knowing that all recipients are not the same and thus unable to respond in the same way. Targeted ads serve the purpose of certain ad placements before a particular group so as to reach consumers who will be interested in the information. Advertisers aim to reach consumers as efficiently as possible with the belief that it will result in a more effective campaign. By targeting, advertisers can identify when and where ads should be positioned to achieve maximum profit. This requires an understanding of how the customer's mind works (see also neuromarketing) so as to determine the best channel used to communicate.
Targeting types include, but are not limited to ads based on demographics, psychography, behavioral variables, and contextual targeting.
Behavioral advertising is the most common form of targeting used online. Internet cookies are sent back and forth between internet servers and browsers, allowing users to be identified or to track their progress. Cookies provide details about what pages a consumer visits, the amount of time spent viewing each page, clicked links; and search and interaction made. From this information, the publisher of the cookie gathers an understanding of the user's search trends and the interests that generate the profile. Analyzing profiles, advertisers can create user-defined segment segments based on users with similar similar returning information, thus profiles. Customized ads are then placed in front of consumers based on what organizations work on behalf of advertisers who are perceived as consumer interests. This ad has been formatted so that it appears on the page and in front of users who are likely to appeal based on their profile. For example, under behavioral targeting if a user is known to have recently visited a number of automotive shopping and comparison sites based on data recorded by cookies stored on a user's computer, users can then be served automotive-related ads while visiting other sites. So behavior advertising relies on data both consciously and unconsciously provided by the user and consists of two different forms: one that involves sending ads based on a user's web-motion rating; the second involves the examination of communication and information as it passes through the gateway of the internet service provider.
Demographic targeting is the first and most basic form of targeting used online. involves segmenting audiences into more specific groups using parameters such as gender, age, ethnicity, annual income, parental status, etc. All members in the group have the same properties. So when an advertiser wants to run a campaign aimed at a specific group of people, the campaign is only intended for groups containing those properties in which the campaign is targeted. After completing the advertiser demographic target, the website or section of the website is chosen as a medium because most of the targeted audience uses that media form.
Segmentation using psychographics Based on individual personality, values, interests and lifestyles. A recent study of what form of media is used by the Entertainment Technology Center at Southern California University, Channel Hallmark, and E-Poll Market Research - concludes that a better predictor of media usage is the lifestyle of users. The researchers concluded that although these groups of groups may have similar demographic profiles, they may have different media attitudes and habits. Psychography can provide further insight by differentiating audiences into specific groups by using their personal traits. Once this happens, advertisers can start targeting customers who already know that factors other than age for example provide customers with better insight.
Contextual advertising is a strategy for placing ads in vehicle media, such as specific websites or print magazines, whose themes are relevant to the product being promoted (Joeng & amp; King, 2005, p.Ã, 2). Advertisers apply this strategy to narrow their target audience (Belch & Belch, 2009, p.Ã, 2; Jeong and King, 2005). Ads are selected and served by automated systems based on user identity and featured media content. Ads will be displayed across different user platforms and are selected based on keyword searches; appear as web pages or pop up ads. This is a form of targeted advertising where the content of the ad correlates directly with the content of the web page users see.
Primary psychographic segment
Personality
Every brand, service, or product has its own personality, how it is seen by the public and the public and marketers will create these personalities to match the personality traits of their target market. Marketers and advertisers create this personality because when consumers can relate to brand, service, or product characteristics, they are more likely to feel connected to the product and buy it.
Lifestyle
Everyone is different and advertisers compensate for this, they know different people living different lives, have different lifestyles and different wants and needs at different times in their consumers' lives ("Psychographic Market Segmentation | Local Direction", 2016 ). Advertisers who base their segmentation on psychographic characteristics promote their product as a solution to these wants and needs. Lifestyle-based segmentation regards where consumers are in their lifecycle and what's important to them at the right time.
Opinions, attitudes, interests and hobbies
Psychographic segmentation also includes opinions on religion, gender and politics, sports and recreational activities, views on the environment and issues of art and culture. The views held by the market segments and the activities they follow will have a major impact on the products and services they buy and that will even affect how they respond to the message.
Alternatives to behavioral advertising and psychographic targeting include geographic targeting and demographic targeting
When an advertiser wants to reach as many consumers as efficiently as possible, they use a six-step process.
- identifies the advertiser's goals by setting benchmarks, identifying products or proposals, identifying core values ​​and strategic objectives. This step also includes listing and monitoring competitor content and creating goals for the next 12-18 months.
- The second step in understanding buyers is about identifying what type of buyers the advertiser wants to target and identifying the buying process for consumers.
- Identifying gaps is key because it describes all the gaps in the content and finds what's important for the buying process and content stages.
- Step 4 is where the content is created and the stage at which the key message is identified and the quality delimiters are discussed.
- Organizing your distribution is the key to maximizing your content potential, this can be social media, blogs or google display networks.
The final step is very important for advertisers because they need to measure return on investment (ROI) there are several ways to measure performance, it can track web traffic, quality of sales leads, and/or share social media.
Alternatives to behavioral advertising include audience targeting, contextual targeting, and psychographic targeting.
Effectiveness
Targeting improves the effectiveness of ads, reducing waste made by sending ads to consumers who are unlikely to buy the product, targeting ads or increasing targeting will result in lower advertising and expense costs.
The advertising effects on the community and those targeted are all implicitly supported by the consideration of whether advertising sacrifices an autonomous option (Sneddon, 2001).
Those who debate the ethical acceptance of good advertising claims, because of the commercial competition context of advertising, consumers have a choice of what to accept and what to reject.
Humans have cognitive competence and are equipped with the skills needed to decide whether to be affected by advertising (Shiffman, 1990). Those who argue against records, for example, that advertising can make us buy things we do not want or that, because ads are trapped in the capitalist system, it presents only a choice based on consumer-centered reality that limits exposure to non-materialist lifestyles..
Although the effects of targeted advertising are mostly focused on targeted targets, they also impact on those who are not targeted. Unintentional audiences often see ads targeted to other groups and begin to form judgments and decisions about advertising and even brands and companies behind advertisements, these assessments can affect future consumer behavior (Cyril de Run, 2007).
The Network Advertising Initiative conducted a study in 2009 measuring the price and effectiveness of targeted advertising. This reveals that the ads are targeted:
- Secure an average of 2.7 times more revenue per ad as a non-targeted "network running" ad.
- Twice more effective at converting users who click on ads to buyers
However, other research suggests that targeted advertising, at least by gender, is not effective.
One of the main difficulties in measuring the economic efficiency of targeting, however, is being able to observe what will happen if there is no targeting because users targeted by advertisers are more likely to convert than the general population. Farahat and Bailey take advantage of large-scale natural experiments on Yahoo! allowing them to gauge the true economic impact of targeted advertising on search and brand clicks. They found, assuming the cost per 1,000 ad impressions (CPM) is $ 1, that is:
- The marginal cost of brand related searches generated from ads is $ 15.65 per search, but only $ 1.69 per search of a targeted campaign.
- The click marginal cost is 72 cents, but only 16 cents from the targeted campaign.
- Variations in CTR lifted from targeted ad campaigns are largely determined by pre-existing brand interests.
Research shows that Content marketing in 2015 yields 3 times more as traditional outbound marketing, but a 62% lower cost (Plus) shows how advertising ability to targeted consumers is the ideal way to advertise to the public. As other statistics show how 86% of people missed television ads and 44% of people ignored direct mail, which also shows how advertising to the wrong group of people can be a waste of resources.
Benefits and disadvantages
Benefits
There are many benefits of targeted advertising for consumers and advertisers:
Consumer
Targeted advertising is beneficial to consumers because advertisers can effectively attract consumers by using their purchasing and browsing habits this allows advertisements to become more clear and useful to customers. Having ads related to consumer interests allows messages to be received directly through an effective point of contact. An example of how targeted advertising is beneficial to consumers if it were that someone saw an ad targeted to them for something similar to an item that was previously viewed online and interested, most likely they would buy it.
Consumers can benefit from targeted advertising in the following ways:
- Delivery of desired products or services more directly to consumers (Keating, nd): after assuming the nature or interests of consumers of their targeting, ads that will attract and engage customers are used.
- Submitting a more direct message related to consumer interest (Keating, nd): the ad is delivered to the customer in a convenient way, whether it is a particular jargon or media, messaging is part of consumers' lifestyle
Advertiser
Advertisers benefit with targeted ads that reduce resource costs and create more effective advertising by attracting consumers with a strong appeal to these products. Targeted ads allow advertisers to reduce their advertising costs by minimizing "wasted" ads to unauthenticated consumers. Targeted advertising attracts the attention of consumers aimed at generating a higher return on investment for the company.
Since behavior advertising allows advertisers to more easily determine user preferences and buying habits, ads will be more relevant and useful to consumers. By creating a more efficient and effective way to advertise to consumers, advertisers are greatly benefited and in the following ways:
- Development of more efficient campaigns (Keating, n.d): by having information about consumers, advertisers can make concise decisions on how best to communicate with them.
- Better use of advertising dollars (Keating, n.d): A greater understanding of targeted audiences will allow advertisers to achieve better results with ad campaigns
- Increased return on investment: Targeted ads will result in higher returns for lower costs.
Using information from consumers can benefit advertisers by developing more efficient campaigns, targeted ads are proven to work effectively and efficiently (Gallagher & Parsons, 1997). They do not want to waste their time and money advertising "the wrong people." Through technological advances, the internet has allowed advertisers to target consumers beyond traditional media capabilities, and target a much larger number (Bergemann & Bonatti, 2011). The main advantage of using targeted advertising is how it can help minimize the waste of advertising by using detailed information about individuals intended for a product. If the consumer generates ads that are targeted to them, they will most likely be interested and click on them. 'Know your customers', is a simple principle used by advertisers, when businesses know information about consumers, it can be easier to target them and get them to buy their products. Some consumers do not mind if their information is used, and more accepting ads with easily accessible links. This is because they can appreciate ads that are tailored to their preferences, not just regular advertising. They are more likely to be directed to the products they want, and may buy them, in return for generating more revenue for business advertising.
Losses
Consumer
Targeted ads cause privacy issues. Targeted advertising is done by analyzing consumer activity through online services such as cookies and data mining, both of which can be considered to undermine consumer privacy. Marketers research online consumer activity for targeted advertising campaigns such as programming and SEO. The consumer privacy issue revolves around an unprecedented tracking ability and whether to trust their tracker. Targeted advertising aims to improve the relevance of promotions to potential buyers, providing execution of advertising campaigns to specific consumers at a critical stage in the buying decision process. This potentially limits consumer awareness about alternatives and strengthens selective exposure.
Advertiser
Targeting ads is not an overnight process, it takes time and effort to analyze consumer behavior. This generates more costs than traditional advertising processes. Because targeted ads look more effective, this is not always a disadvantage, but there are cases where advertisers have not received the expected earnings. Targeted ads have limited reach to consumers, advertisers are not always aware that consumers change their minds and purchases that no longer mean the ads are clear to them. Another disadvantage is that when using Cookies to track advertiser activity it can not describe whether 1 or more consumers are using the same computer. This is seen in family homes where many people of a wide age range use the same device.
Controversy
Targeted advertising has generated controversy, especially with respect to privacy and privacy policies. With behavioral targeting focused on specific user actions such as site history, search history, and purchasing behavior, this has raised the user's concern that all activity is being tracked.
Privacy International is a UK-registered charity that defends and promotes the right to privacy around the world. The organization is struggling to make Government regulations in a way that protects the rights of the general public. According to them, from an ethical point of view such as web traffic interception must be conditional on the basis of an explicit and informed consent. And action must be taken where the organization can be shown to have acted against the law.
Surveys conducted in the United States by Pew Internet & amp; The American Life Project between January 20 and February 19, 2012 reveals that most Americans do not support targeted advertising, viewing it as a privacy violation. Indeed, 68% of those surveyed said they were "not okay" with targeted ads because they did not like their online behavior being tracked and analyzed.
Another problem with targeted advertising is the lack of 'new' advertising of goods or services. Since all ads are designed to be based on user preferences, no different products will be introduced to consumers. Therefore, in this case consumers will be confused because they are not exposed to something new.
Advertisers focus their resources on consumers, which can be very effective when done right (Goldfarb & Tucker, 2011). When the ads do not work, consumers can find this creepy and start wondering how advertisers learn information about them (Taylor et al., 2011). Consumers can have concerns about ads targeted to them, which are basically too personal for convenience, feel the need to control their own data (Tucker, 2014).
In targeted advertising privacy is a complicated issue because of the type of user-protected information and the number of parties involved. The three major parties involved in online advertising are advertisers, publishers, and networks. People tend to want to keep websites that were previously browsed personally, even though the users 'clickstream' is being transferred to advertisers working with the ad network. User preferences and interests are visible through their clickstream and their behavioral profile is generated (Toubiana et al., 2010).
Source of the article : Wikipedia
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