The Beginner’s Guide to Personalized Advertising

Contrary to popular belief, almost two thirds of consumers said that they didn’t mind personalized advertising and messages. However, the same report also suggests that approximately one third of the respondents between the ages 18 to 49 said that while they liked the ads, they were not good enough. So, in other words, people prefer advertising content but whenever it is both useful and relevant to them.

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What is Personalized Advertising?

Personalized Advertising or ‘Retargeting ‘is an online marketing strategy where ads are targeted to demographics, behavior, audience and time. These ads are based on information that the company has collected about their target audience over a period of time – based on your customer’s browsing history or purchase behavior. Brands tailor ads delivered to the customer through certain ad networks.

Several different pieces of information (read data) may be used, to create these ads, such as:

  • The pages browsed on a website
  • The time spent on the website
  • The number of clicks and pages clicked
  • The last visit of the customer to the website
  • The nature of the overall interaction of the customer with the site

Why is Personalized advertising beneficial for eCommerce?

  • Personalized ads show people what they really want or need. It can’t get better than that.
  • They not only attract more attention, but also stay in a person’s memory for a longer time.
  • It increases conversions for eCommerce
  • It is the most sought-after marketing technique in the present day
  • Personalized ads are more engaging.
  • Personalized ads have higher ROI than other advertising channels.

Technology behind Personalized Ads

At first, companies collect some information about the customer through one or more of the following ways.

Cookies – Certain websites insert ‘cookies’ into a user’s hard drive. These cookies track customer movements among its pages.

Search Data –Search engines like Google, Yahoo and MSN analyze search terms and user habits to place targeted advertising along with regular search results and also get paid from the companies for a higher position in the SERP.

Profile Data – When you create a new profile on a social media platform, you enter all basic information like name, age, religion, education etc. These sites then use this data to provide you with custom advertising.

They then use this information to create personalized advertising, relevant to their target audiences. We need to understand that in today’s noisy marketing world, when consumers are constantly overwhelmed by content, it is very important for brands to deliver marketing content that is relevant to the customer’s needs. Individualized experience is the key. And technologies like AI along with its algorithms and Big Data bring that to marketing. Artificial intelligence (AI) allows companies to personalize their marketing content to deliver the right messages to the right audiences at the right time. It analyzes behavioral and demographic patterns, and uses real-time user profiling to determine what type of content should be used for the benefit of the consumer.

Hence, long story short, personalized advertisements help your customers with more personalized offers. It helps you to get into their shoes and give them what they need.

So, have you tried personalized Advertising for your eCommerce store?


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