For a business, purchasing media is an expensive aspect of advertising, and sometimes that media can be wasted on people who it was not intended for, or people who are not in the target audience. Since advertising is such an essential aspect to businesses, wasting any time, money, or effort on media that is not being used correctly is something that should be avoided. This is where target advertising comes in. Target advertising focuses on certain aspects of the company’s target customer to make sure that the ads are reaching the right people. With this, target display advertising has increased in popularity.
What is target display advertising?
Target display advertising is basically when a business utilizes a consumer’s search history, context, geography, and social activity to ensure that a digital ad is being shown to the right customer at the right time. There are two types of target display advertising:
User Targeting – When doing this type of targeting, you tend to focus on certain aspects, geographical or behavioral, and work to get yours ads to that specific user.
Inventory Targeting – When you place your ads on certain types of sites. These sites are usually sites that relate to content that your target market may be interesting in or sites that tend to reach the demographic groups that are closely related to your target market.
An example of target display buying can be seen on most people’s Facebook profiles. When a person is on their newsfeed, different advertisements are shown. The combination of advertisements is unique to each person, as Facebook uses the users search history and browsing history to advertise something they may be interested in. For example, say you are looking at different pairs of boots at Nordstrom. The next time you log onto your Facebook, you are more likely to see boot advertisements or Nordstrom advertisements mixed into your newsfeed or on the side of the page. This type of target advertising has information about what people are looking for and what stage of the buying cycle a customer may be in, which allows them to show the most effective advertisements at the right time.
So, why should businesses use target display advertising?
While the actual process of target display can be complex, the reasons behind using it are not. A business can reduce the risk of advertising to the wrong person by using target display advertising. Instead of risking wasting a ton of money and time on people who will never even visit your website or make a purchase, why not focus on the type of customer you are aiming for and advertise to them? You are more likely to have higher conversion rates if you advertise your site to the right people, because people who are actually curious or looking for your site may be more willing to visit or buy.
Overall, a business really has nothing to lose when trying target display advertising. Why not try it? It can reduce uncertainty and risks while improving conversion. Sounds wonderful to me.