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Targeted advertising

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Targeted advertising is a form of advertising, including online advertising, that 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. Targeted advertising is focused on certain traits and consumers who are likely to have a strong preference. These individuals will receive messages instead of those who have no interest and whose preferences do not match a particular product's attributes. This eliminates waste. Traditional forms of advertising, including billboards, newspapers, magazines, and radio channels, are progres...

Types

Web services are continually generating new business ventures and revenue opportunities for internet corporations. Companies have rapidly developed technological capabilities that allow them to gather information about web users. By tracking and monitoring what websites users visit, internet service providers can directly show ads that are relative to the consumer's preferences. Most of today's websites are using these targeting technologies to track users' internet behavior and there is much debate over the privacy issues present. Search engine marketing edit Search engine marketing uses search engines to reach target audiences. For example, Google's Google Remarketing Campaigns are a type of targeted advertising where websites use the IP addresses of computers that have visited their websites to remarket their ad specifically to the user who has previously been on their website as they use websites that are a part of the Google display network, or when searching for k...

Process

Advertising provides advertisers with a direct line of communication to existing and prospective consumers. By using a combination of words and/or pictures the general aim of the advertisement is to act as a "medium of information" (David Oglivy) making the means of delivery and to whom the information is delivered most important. Advertising should define how and when structural elements of advertisements influence receivers, knowing that all receivers are not the same and thus may not respond in a single, similar manner. Targeted advertising serves the purpose of placing particular advertisements before specific groups so as to reach consumers who would 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 are able to identify when and where the ad should be positioned in order to achieve maximum profits. This requires an understanding of how...

Effectiveness

Targeting improves the effectiveness of advertising it reduces the wastage created by sending advertising to consumers who are unlikely to purchase that product, target advertising or improved targeting will lead to lower advertising costs and expenditures. The effects of advertising on society and those targeted are all implicitly underpinned by consideration of whether advertising compromises autonomous choice. Those arguing for the ethical acceptability of advertising claim either that, because of the commercially competitive context of advertising, the consumer has a choice over what to accept and what to reject. Humans have the cognitive competence and are equipped with the necessary faculties to decide whether to be affected by adverts. Those arguing against note, for example, that advertising can make us buy things we do not want or that, as advertising is enmeshed in a capitalist system, it only presents choices based on consumerist-centered reality thus limiting the exposure t...

Benefits and disadvantages

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This section contains a pro and con list , which is sometimes inappropriate. Please help improve it by integrating both sides into a more neutral presentation, or remove this template if you feel that such a list is appropriate for this article. ( April 2017 ) Benefits edit There are many benefits of targeted advertising for both consumers and advertisers: Consumers edit Targeted advertising benefits consumers because advertisers are able to effectively attract consumers by using their purchasing and browsing habits this enables ads to be more apparent and useful for customers. Having ads that are related to the interests of the consumers allow the message to be received in a direct manner through effective touchpoints. An example of how targeted advertising is beneficial to consumers if that if someone sees an ad targeted to them for something similar to an item they have previously viewed online and were interested in, they are more likely to buy it. Consumers can benefit from targ...

Controversies

Targeted advertising has raised controversies, most particularly towards the privacy rights and policies. With behavioral targeting focusing in on specific user actions such as site history, browsing history, and buying behavior, this has raised user concern that all activity is being tracked. Privacy International is a UK based registered charity that defends and promotes the right to privacy across the world. This organization is fighting in order to make Governments legislate in a way that protects the rights of the general public. According to them, from any ethical standpoint such interception of web traffic must be conditional on the basis of explicit and informed consent. And action must be taken where organizations can be shown to have acted unlawfully. A survey conducted in the United States by the Pew Internet & American Life Project between January 20 and February 19, 2012 revealed that most of Americans are not in favor of targeted advertising, seeing it as an invasion ...