Lesson 13. What is Targeted Advertising?

This is an advertising targeted only to certain people.

The settings for targeted advertising allow you to show ads or posts not to everyone, but only to specific categories and groups of people selected by the advertiser for certain criteria.

These signs should be determined based on the portrait of your target audience and its segments. Who are these people, where do they live, what is their gender and age, what are their habits and interests.

Moreover, the more accurately the target audience is determined, the more effective is the advertising, and the lower its costs. The attempts to unreasonably expand the target audience, in order to increase the circle of advertising recipients, will lead to a significant cost overrun and inefficiency.

Therefore, you should segment your target audience as much as possible, and configure advertising for each individual segment.

Usually, marketers use the concept of the core of the target audience to determine targeting – it is about 70% of the total number of customers.

Proper targeting allows you to show ads only to those who wants it and can buy something from you, or become your potential customer.

Correctly configured targeted advertising allows you to choose the right segments of the audience in order to sell something in the future.

Incorrect targeting leads to inefficient spending of the budgets allocated for advertising, so you will not receive any loyal subscribers or potential customers. When the wrong people see your advertisement, they can click on it, watch it, but they will never buy anything.

In targeted advertising, there are several ways to specify the group of people who will see your advertising message.

Geo-targeting allows you to show ads to people who are locating in a particular place, or live there, or interested in this place.

Geo-targeting works in almost all social networks, and in display advertising of Yandex YAN (Yandex Advertising Network) and Google Display Network.

Proper settings allows you to narrow down the display of advertising in a circle of 500 meters, so you can show ads even to residents of a particular house, or to those who are in a particular office building.

In some countries, even zip code targeting is possible.

Targeting by age and gender. Almost all systems allow you to show ads to people of a certain gender and age.

Targeting by interests. Most systems allow you to show ads to people with certain interests, based on what people often search on the Internet.

Targeting by behavior. Advertising is shown to people who have certain habits: for example, often traveling, buy something online, etc.

Targeting by subscribers. Social network shows, or excludes from the display, people who are subscribed to a particular group or page in this social network.

In addition, some advertising systems, such as Yandex and Facebook, allow you to download data from existing customers (emails and phones), and then show specific ads to these people.

There are advertising opportunities for look-alike audiences. If you have a certain audience, you can give the system a task to find people with similar characteristics and show ads to them.

There are different payment options for targeted advertising. The most commonly used: CPC – cost per click, and CPM – cost per 1000 impressions, or video views.

In the settings, you can usually set payment limits for the amount or time, as well as the overall budget of the advertising campaign.

An advertising campaign is a pre-planned action on a social network or advertising system to promote any group of goods or services. Typically, in the campaign settings the overall budget, duration, and goal are set.

Targeted advertising is a very effective means of advertising which allows you to distribute advertising information with relatively low costs, however, for the proper use of targeted advertising you need knowledge, experience and skills.

 All the lessons are here.