Targeted Advertising is directed towards an audience with certain traits, based on the product or person the advertiser is promoting.
These traits can either be demographic with a focus on race, economic status, sex, age, generation, level of education, income level, and employment, or there can be a psychographic focus which is based on the consumer values, personality, attitude, opinion, lifestyle and interest. This focus can also entail behavioral variables, such as browser history, purchase history, and other recent online activities.
- Great targetability to consumers through their demos, psychographics, location and interests.
- Graphic and video displays linked to their website.
- Is on both mobile and desktop platforms.
- Relatively low-cost way to reach thousands of consumers.
- Bought programmatically using AI in real time, based on demand.
- the click-through rate (CTR) of a targeted ad is 10x higher than that of a typical display ad.
- Customers pay for impressions on a CMP basis. A $10k budget reaching 1 million people is a $10 CPM.
- Other types of targeted display include Retargeting and Geofencing.
Types of Targeting
Contextual
Buying content related to customer product. Example: Bass Pro Shops buys ads on the Field and Streams website.
Topical
Example: Bass Pro Shops buying an article on fly fishing in the Wall Street Journal.
Behavorial
Example: Bass Pro Shops buying an ad based on their customers bahavior. Also buying ads on The Weather Channel, ESPN, etc.