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Technology has changed consumer behavior, which has led to developments in marketing strategies. Among the major shifts in recent years has been the adoption of targeted automated display, which sounds complicated, but simply means an automated way to sell or buy digital ads.
An increasing number of marketers are shifting their advertising budgets towards digital channels, in part because digital advertising relies on accurate data that enables marketers to effectively reach potential customers. According to PwC’s Global Entertainment & Media Outlook, just over 50% of current advertising budgets are spent on digital platforms, and it’s expected to rise to 54.4% in 2022 (it was 47.7% in 2018).
Ad spend follows attention
Digital marketing is always changing: what works today may become obsolete next year. To see which direction it is “taking,” you have to keep track of where people’s interest or focus is. A recent report by the staggering statistical firm Statista included that “nearly half of [survey] Participants reported that they spend an average of five to six hours on their phones per day, not including work-related smartphone use,” and that they spend more hours in app-based environments than browsers. Other report data shows that consumers on average They have more than 30 phone apps, but they spend 97% of their mobile time on ten favorite apps – to cater to a variety of interests, including social media, games, information, news, music, calendars, etc. Direct more than two-thirds of bot ad budgets towards mobile rather than desktop ads.
Related: How digital marketing and advertising can help grow your e-commerce business
Tactics for Effective Targeted Programming
Display advertising is an effective digital marketing platform that enables marketers to interpret target demographic data from different places on the Internet. Methods that have proven successful include:
- Content audience selection: Automated presentation aimed at content audiences relies on searching for potential customers who consume the same content, use similar apps, and visit the same websites. (If people visit the same site, they will be informed of the same things and affected in the same way.) For marketers, if people have the same viewpoint, similar convictions can be used to engage audiences in the brand. Your content audience targets a demographic that tends to see you in a positive way and respond positively.
Related: Know Your Audience – Tips for Personalized Communication
- Location targeting: This term boils down to targeting potential customers from a predetermined location. Location targeting works best for traditional businesses because the targets are people within a certain geographic range. For example, if your business is located in Lafayette, Indiana, what is the point of advertising in San Francisco? These restrictions also apply primarily to digital businesses that do not have physical space. Depending on the brand, it may be best to target specific areas: for example, if you sell ski equipment, your audience is from Alaska, the Pacific Northwest, New England, and other snowy regions. Advertising in the warm Hawaiian countryside will not increase conversions.
- Targeting interests: Instead of targeting the general population, research your own – discover the products your target audience enjoys along with your products, along with the activities they participate in. If people are enjoying ‘Care X’ in addition to your product, then targeting those people may lead to conversion. Here, the focus is on contextual environments. For example, a brewery could focus on people interested in lifestyle, food, entertainment and sports.
Interest targeting enables marketers to filter audiences by identifying interests that overlap with their product, and then they target audiences that are likely to persuade and allocate resources toward conversion. This technology has shown a positive conversion rate on targeting the general population, and can be used in both physical and digital spaces.
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• Retargeting: Targeting a random consumer from the general population will require more resources and result in lower conversion rates. Instead, this technology focuses on people who have recently visited a digital platform or website. Those who visit your digital space are more likely to become future converters, redirecting advertising resources to individuals who have already shown interest in your product and are familiar with your brand.
It is important to note that although retargeting is effective, it is low in conversion rank, mainly because it does not increase consumer volume.
As new technology advances, the need for digital awareness drives marketers into a frenzy. And while digital ads are a great way to increase brand awareness, customers (who are increasingly implementing ad blocking tactics) can quickly find them repetitive and annoying. Marketers need to invent and creative ways to pass information on without appearing in the face of the people they want to attract, and targeted digital ads can disappear, even when you focus on the ideal audience.