Targeted Marketing:- 5 most popular ways to target online:

· Contextual targeting: Ads are targeted to related content being viewed by consumers; content usually matches the advertiser’s business. For example, ICICI Prudential may run its ads in the mutual fund section of a personal finance site or Hyundai Santro would run its ads in the family section of an automotive site.

o Advantages: There’s an implied interest in this content and an assumption that a prospect is in market.

o Challenges: Content has a premium value and tends to be cluttered with competitive ads. In addition, advertisers rely on a small window to reach prospects.

· Demographic targeting: Ads are targeted to content that has a high composition of a specific market segment (regardless if there’s a contextual fit). Demographic information may include professions, industry, company size, gender, age, and household income. For example, an advertiser who wants to reach baby boomers may advertise on a site like ThirdAge.

o Advantages: Demographic targeting provides an opportunity for advertisers to increase their reach and avoid highly competitive and cluttered contextual placements.

o Challenges: Just because someone fits a market segment, doesn’t mean she’s in market for a product. Demographic targeting is better suited for branding campaigns.

· Geographic targeting: Ads are targeted to specific geographical areas based on a user’s IP address, Zip Code, or the local content he’s viewing. An automotive dealer in New Jersey can advertise local lease offers on NJ.com or target consumers via their IP addresses on USAToday.com

o Advantages: Marketers can target consumers with relative, local-interest creative.

o Challenges: This targeting can be hard to manage since technology can be imperfect. In addition, local-interest creative isn’t always available.

· Registration targeting: Ads are targeted to consumers based on the information they provided during registration. If ZDNET wants to reach independent software testers, it could exclusively target people who are regular downloaders of softwares registered as such.

o Advantages: It allows marketers to target hard-to-reach segments without wasting impressions.

o Challenges: Registration information can be outdated or inaccurate.

· Behavioral targeting: Ads are targeted to consumers based on previous activity (past content, purchase, or search history). For example, Orbitz can retarget a consumer on Yahoo who just configured a trip but didn’t purchase.

o Advantages: It provides an opportunity to create a dialogue with consumers and reach them beyond contextual environments.

o Challenges: If not handled properly, it could have an adverse affect.

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