Targeted Advertising - Get your ads seen by the right people

Online advertising is the process through which companies that maintain websites (publishers) provide web space to other companies for advertising. If an advertiser is not shrewd enough, he or she may place ads on websites that have nothing to do with the product. Such an ad is not targeted advertising; it will result in loss of revenue for the advertiser company.

Imagine, on the other hand, a visitor browsing a tourism website. An advertisement about a hotel blinking on the site might catch his or her attention, and he may click the ad. This is exactly what happens in targeted advertising: advertisers aim their ads at certain specific groups of people, groups that they think will respond to the advertisement. The specific categories may be based on content, demographic, geographical location, age, gender, profession, interests, etc. Targeted advertising also considers user behavior and consumption patterns before it focuses its efforts on certain groups.

Targeted advertising is beneficial both to advertisers, who find their niche audiences, and publishers, who make their money by offering web space to advertisers. Studies have found that, compared to normal advertising efforts, targeted advertising yields a higher CPM (cost per 1000 impressions).

Here are some benefits of targeted advertising.

• Advertisements match the content displayed on web pages
• The ads displayed are relevant and informative
• Publishers benefit because they generate more revenue
• The ads reach their intended audience.

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