Targeted advertising is a form of advertising where online advertisers can use sophisticated methods to target the most receptive audiences with certain traits, based on the product or person the advertiser is promoting. These traits can either be demographic which are focused on race, economic status, sex, age, the level of education, income level and employment or they can be psychographic focused which are based on the consumer’s values, personality, attitudes, opinions, lifestyles and interests. They can also be behavioral variables, such as browser history, purchase history, and other recent activity. Targeted advertising is focused on certain traits and the consumers who are likely to have a strong preference will receive the message instead of those who have no interest and whose preferences do not match a product’s attribute. This eliminates wastage.
What is ‘Tailored Advertising’
Marketing and advertising campaigns that place emphasis on the needs and wants of a small sets of people or on an individual consumer, as opposed to targeting a mass audience. Tailored advertising may involve providing a coupon for a specific type of good or service based on the past purchases, using demographic information to present an advertising message to a particular market segment, or running a campaign designed for a specific city or metro area. Because it is more specialized, tailored advertising tends to be more expensive to develop than mass-market advertising.
Explaining ‘Tailored Advertising’
Tailored advertising has become a more common technique with the advent of the internet, since companies are able to track individual consumer behavior more readily. For example, a consumer buys milk at a grocery store where he is a member of that store’s loyalty program. The loyalty program collects information on that consumer’s shopping habits and is able to compare what this consumer purchases with what others purchase. The information it aggregates suggests that most consumers buying milk also buy bread. At the checkout, the store may print out a coupon for 10% off the price of bread.
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