Targeted advertising

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Targeted[1] advertising or data-driven marketing 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.[2]

These traits can either be demographic with a focus on race, economic status, sex, age, generation, level of education, income level, and employment, or psychographic focused on the consumer values, personality, attitude, opinion, lifestyle, and interests.[1] This focus can also entail behavioral variables, such as browser history, purchase history, and other recent online activities. The process of algorithm targeting eliminates waste.[3]

Traditional forms of advertising, including billboards, newspapers, magazines, and radio channels, are progressively becoming replaced by online advertisements.[4]

Through the emergence of new online channels, the usefulness of targeted advertising is increasing because companies aim to minimize wasted advertising.[4] Most targeted new media advertising currently uses second-order proxies for targets, such as tracking online or mobile web activities of consumers, associating historical web page consumer demographics with new consumer web page access, using a search word as the basis of implied interest, or contextual advertising.[5]

  1. ^ a b Cite error: The named reference jansen2013 was invoked but never defined (see the help page).
  2. ^ Plummer, Joe; Rappaport, Steve; Hall, Taddy (2007-04-11). The Online Advertising Playbook: Proven Strategies and Tested Tactics from the Advertising Research Foundation (1 ed.). John Wiley & Sons. ISBN 9780470051054.
  3. ^ Iyer, G.; Soberman, D.; Villas-Boas, J. (2005). "The Targeting of Advertising". Marketing Science. 24 (3): 461–476. doi:10.1287/mksc.1050.0117.
  4. ^ a b Johnson, Justin P. (2013-03-01). "Targeted advertising and advertising avoidance". The RAND Journal of Economics. 44 (1): 128–144. CiteSeerX 10.1.1.491.2999. doi:10.1111/1756-2171.12014. ISSN 1756-2171.
  5. ^ Li, Kai; Idemudia, Efosa C.; Lin, Zhangxi; Yu, Yang (2012-06-01). "A framework for intermediated online targeted advertising with banner ranking mechanism". Information Systems and E-Business Management (in Spanish). 11 (2): 183–200. doi:10.1007/s10257-010-0134-4. ISSN 1617-9846. S2CID 17037061.
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