Key Benefits of Targeted Advertising

Updated: Jan 16, 2021

Advertisements play a vital role in business. No business can thrive without some sort of advertisement. In fact, it's so common to advertise that 84% of all people expect brands to create some sort of advertising content. Obviously, there are many advantages to using advertising. If you are using advertising and are still not seeing much benefit, it might be time to shift towards targeted advertising.

Targeted advertising is defined as advertising that helps send a message to a certain group of people depending on their traits. Targeted advertising is usually done after segmenting the audience based on pre-defined traits.

Key benefits of targeted advertising:

Targeted advertising refers to advertising to a certain group of people based on their taste or similar factors. Here are some of the key benefits of using targeted advertising over other forms of advertising:

1) Easier to get your message across.

2) Dramatically improves short-term and long-term engagement.

3) Better Return on Investment (ROI).

Easier to get your message across:

One of the key benefits of using targeted advertising is the ability to get your message across. The human mind works in unique ways. It is scientifically proven that you can only get your message across easily if the audience that is listening to you is on the same platform. There are many ways when using targeted advertising to get your message across.

Your audience is people with similar tastes:

Because targeted advertising technically means that your audience will be a specific set of people that you know about: their tastes, their interests and what they might like as a product; any business can easily craft a message in a language that the audience will be able to understand very easily.

A hidden benefit is that businesses won’t have to put in more effort and buy additional screen time to introduce the topic when advertising their product, because targeted advertising will be targeting people that already know about the product.

Improve engagement dramatically:

In a study, when asked about whether participants would want to prefer targeted advertising or random advertising about products that weren’t linked to their interests, a healthy 40.7% responded in the favor of targeted advertising. Comparatively, only 31.9% of people showed interest in advertising that wasn’t targeted – and a great deal of them were only concerned about the security concerns.

Targeted advertising can help dramatically improve the engagement between the viewers because it is specifically designed to be shown to people who have an interest in the product or service that the business is trying to show off.

Engagement translates to better sales:

You don’t need studies to understand how important customer engagement is to a business – as engagement directly translates to more sales, and leads more investors to invest in your business in the stock market. Customer engagement is one of the biggest reasons why businesses even succeed. Take the example of Starbucks – perhaps the biggest fast-food chain restaurant that relies on customer experience and engagement.

87% of the customer’s affinity towards Starbucks is because of how it treats its customers and how interactive it is when helping its customers. Better customer experience can even lead to as much as 1.5 times the employee engagement.

Easier to design engaging ads:

Businesses have to design different ads for different platforms if they want the ads to be interactive: Facebook will have Facebook-specific features in the advertisement if they want it to be interactive. Similarly, mobile users will prefer an ad that looks as if it was made only for mobile devices.

Through the use of targeted advertising, businesses can easily design ads that are targeted for a specific device or a specific platform – effectively making the ads much more powerful without having to waste many resources.

Improved Return on Investment (ROI):

Targeted advertising may seem like a drag because anyone can be a customer – but it is not. Studies show that targeted advertising is much more likely to lead to the sale as compared to just throwing around advertisements for users who don’t have any interest in the service that the business is offering.

Most platforms have a pay-per-view advertisement system. Almost all platforms, like Facebook, Twitter, Instagram and Snapchat, have a rule where they will only show as many ads to people as they are paid. For example, if they are paid a few hundred dollars, they will only show a specific advertisement to a few thousand people for a few days.

The main purpose of doing advertisements is to get more customers into your business – and if this is not, perhaps it is time to change how your advertisement system works.

By targeting advertisements toward people who will want to buy your service and/or product, you will potentially be saving a lot of money from advertisements. All platforms that we mentioned above have their dedicated system that can track their user’s movement and figure out what kind of products they will like, so you don’t even have to spend money on R&D to figure out what kind of customers will like your services.

Final Thoughts:

There are a lot of benefits that come with targeted advertising. Because it is very accessible, all businesses – whether they are small or very big – will easily scale to its capabilities. We recommend that all businesses should try to use targeted advertising at least once in their professional career. Through effective use, targeted advertising can help dramatically improve the sales of one’s business.

On a budget and need help with your marketing efforts? Contact us today to get professional marketing help for your small business!

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