Targeted advertising: what it is and how it works

Targeted advertising is a format of paid online advertising in which advertisers choose the characteristics of the audience they want to show ads to. This approach lets you focus on certain groups of users, taking into account their interests, behavior and other parameters.

We come across advertising regularly, even when we do not pay attention to it.

According to estimates cited in the original article, in 2021 the average person saw from 6,000 to 10,000 ads every day.

Advertising can be found in different formats:

• Print ads.
• Advertising in social networks.
• Advertising in mobile apps.
• Banners on websites.
• Advertising in search engines.
• Advertising in podcasts.
• Ads on television and streaming services.
• Radio advertising.

And these are far from all possible formats.

Which characteristics targeted advertising takes into account

Advertisers can target various characteristics of potential buyers.

The original article lists:

• Race.
• Age group.
• Education.
• Gender.
• Religion.

Besides demographic parameters, household income, consumer behavior, personal characteristics, lifestyle and interests can be taken into account.

Combining different data lets advertisers define more precisely the audience that may be interested in the offer.

However, excessive personalization can make users uncomfortable.

How ethical targeted advertising is

Targeted advertising is not always perceived positively.

The use of cookies and other user data raises privacy questions.

Some consumers believe digital advertising is becoming too intrusive.

This is especially noticeable when ads follow a person from one platform to another and reflect their recent actions too precisely.

Such advertising can reduce trust in a company.

So advertisers should regularly review their approaches and make sure ads stay useful and do not turn into an intrusive escort of the user.

How targeted advertising works

The way an advertising campaign is set up depends on the budget, the company’s resources and the platform used.

The original article covers two main sources of information for targeting: cookies and social network data.

Using cookies

When visiting websites, users often come across a request to use cookies.

These files may be stored on the device and used to track the visitor’s actions on the site.

The collected information helps companies analyze audience behavior and match it with other user characteristics.

Based on this data, advertisers can single out certain groups of potential buyers.

Using social network data

Large technology companies, including Meta and Google, collect user data that can be used to set up advertising.

Advertising platforms let you choose audience characteristics when creating campaigns.

These can be demographic parameters, interests and behavioral signs.

After setup, ads are shown to users who match the chosen conditions.

Targeted advertising on VKontakte

The original article noted that because of restrictions on Facebook and Instagram, some advertisers returned to promotion on VKontakte.

Targeted advertising on VKontakte is one of the tools of social media promotion.

Its main task is to set up ad impressions for a specific target audience.

The advertiser needs to define the characteristics of the people who may be interested in their goods or services.

For this it is important to understand the capabilities of the advertising platform and the principles of audience setup.

Mastering these tools takes time. At the same time, the accuracy of the chosen parameters affects how well ads match users’ interests.