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Personalized advertising: Is it worth the hype?

Personalized advertising: Is it worth the hype?

Personalized advertising is a hot button topic related to online marketing. In fact, it earned a spot as #1 on “Marketing’s Biggest Buzzwords TOP 10″(https://app.leadformix.com/blog/article/buzzword-buzzword-list-of-marketing), which is a great place to start your research if you want to find out more right away. But first, let’s clarify what it is and whether it’s worth the buzz and what can we expect from this new trend for 2016 and beyond. Personalized advertising is the practice of tailoring content and ad copy to specific individuals or small groups of consumers, usually based on their individual preferences and characteristics such as location, demographics, interests , opinions, etc. This is an example of a good personalized ad from Google Ads. It might seem that personalized advertising is a completely new phenomenon, but Google has been doing it for a while. For example, it started using “remarketing” in 2004, which is a way of targeting users based on their past browsing behaviors. Google has been testing personalized advertising for a long time, and now has a considerable number of customers who have been operating remarketing campaigns for a number of years. We can safely say that personalized advertising isn’t a new thing, but buzzwords are a different story.

What’s a buzzword? According to the Urban Dictionary, a buzzword is “a word or term that is used to impress or intimidate someone.

Personalized advertising
 

What is personalized advertising?

Personalized advertising is the practice of targeting certain individuals or groups on the web with online ads based on their data and habits on the web. Often, when someone logs into an account with a Hotmail or Facebook account, they see personalized advertising. Ever notice that your activity on the internet suddenly turns up a personalized offer on social media? That’s because most medium to large businesses use customer data or tracking scripts to deliver advertising personalization. Their marketing strategy takes you through a mapped out customer journey that includes getting you from brand awareness to customer loyalty.

Most of these companies use personalized emails, personalized videos and various other interest based advertising methods to capture your attention, get you to interact with them and ultimately convert you. Each personalized campaign is mapped on the intended journey and automatically triggers once you move to the next step.

When was personalized marketing introduced and by whom?

The importance and impact of audience data and marketing

The process in which targeted ads are shown to certain individuals or groups within a set amount of time is known as personalization. Personalized marketing allows advertisers to target specific needs or desires in order to improve their advertising. This practice of targeting certain individuals or groups on the web with online ads based on their data and habits on the web.

Often, when someone logs into an account with a Hotmail or Facebook account, they see personalized advertising. This is an example of good personalized advertising from Google Ads. It might seem that personalized advertising is a completely new phenomenon, but Google has been doing it for a while. For example, it started using “remarketing” in 2004, which it defines as the practice of “serving ads for people who have visited your site.”

Once someone has visited your site, you can be sure that you already have their basic demographic information, meaning that you can tailor what you show them more effectively.

How audience data and marketing helps brands and businesses.

Personalized marketing allows advertisers to tailor their products or services to the needs or desires of certain individuals or groups on the web. Often, when someone logs into an account with a Hotmail or Facebook account, they see personalized advertising. This technique is often called retargeting. For example, if someone visits an online store about farming equipment, the webpage they are on might have ads on the side for fertilizer or tractors. This is an example of good personalized advertising from Google Ads. However, it is important to not use this too often because some consumers may be irritated by seeing ads for things they were just looking at. If they’re taking actions, like clicking on the ads, this isn’t a big issue. Similarly, the searcher may see ads for other products in the category. How can you tell which ads will perform the best? This is the marketing analytics part of marketing analytics. You can test different variations of each ad and measure how each performs. The best performing ad should be the one you use. After all, you are paying for each click.

Personalized advertising: the pros and cons

Personalized advertising is the other major application for marketing analytics. If you take a look at your favorite blog or newspaper, you will likely see personalized advertising. This is advertising that is tailored specifically to you. For example, if my favorite newspaper is the New York Times, I might see an ad for a new movie called 300.

What are the benefits of personalized advertising?

The chief benefit of personalized advertising is that it is more profitable. Since such ads are more closely tailored to the tastes of individual people, they are more effective at getting people to buy the advertised products. This is typically true regardless of whether people are buying digital or physical products or engaging in digital or physical transactions. For example, personalized shopping ads make it easier to sell physical products and engagements and personalized click-to-call (or click-to-chat) ads make it easier to sell digital products and services. Almost everyone benefits from personalized advertising, from sellers to buyers to the media outlets that carry the ads.

The potential downsides of personalized advertising

Privacy concerns are driving a lot of changes these days. Information is readily available and there is the potential invasion of privacy of customers and, incidentally, of employees, as well as the potential of having unfair business practices. In an age where more and more customers are abandoning traditional media and going online, businesses have been scrambling to catch up with the times. In some instances, too much information is available and the targeting on relevant ads can get a bit invasive. Imagine having an ad say, “You live on XYZ street which is only 2 miles from our establishment.” The importance of reaching potential customers with personalized content is to capture attention and not creep them out. This should always be kept in mind when designing a personalization strategy.

In order to attract customers, they have been turning to personalized advertising as a way to compete with the likes of Google and Facebook, who virtually have a monopoly on targeted ads.

In the past, companies would throw ads on billboards and hope for the best. Now they can look at the demographic and their spending habits to see what items they deem as relevant and most effective – personalized advertising has become the golden standard. If you’re looking for a marketing strategy that utilizes personalized content then feel free to book a free strategy call with us.

 

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