Targeted advertising is the practice of displaying advertisements based on the demographic and psychographic profile of the recipient, the environmental and mental context within which the recipient is operating, and the purchasing intent of the recipient. Such a level of detail, in the targeting of advertisements, is ideal, and presently not achievable. However, with the shift in media-consumption habits, from analogue to digital platforms, it is not inconceivable that the capability, to achieve such a level of detail, will be available in the near future.
Targeted advertising is any marketer’s dream, as it promises the reality of a consumer receiving a brand communication in sync with her profile, her interests, her needs, and her frame of mind: effectively a tete-a-tete between the brand and the consumer, over a broadcast medium. Targeted advertising is made possible through the precise tracking of consumer media and content consumption choices across time, and then uncovering patterns, through statistical analysis, between these choices and the profiles of the consumers.
The reason that targeted advertising has become a hot topic for discussion is because of the rise of the Internet as a key platform for brand communications. One of the strengths of the Internet is the facility to track and document each and every action executed on it; in most cases with a time and location stamp on the action. This data can then be mined for associations and causality. Once analysed, groups of consumers with similar profiles can be targeted, with a high level of precision, with brand communications specifically tailored to their needs. Their response to the communications can monitored in near real-time and measured to a fine level of granularity: information that can be used to further refine the targeting model.
See on www.brandalgorithms.com