Targeted Advertising

by Saul Edmonds

Use targeted advertising to grow your business

“The odds of hitting your target go up dramatically when you aim at it.”
 (Mal Pancoast)

Targeted advertising is a term much in use today. 

What is Targeted Advertising?

A 'target' is a highly defined demographic of potential customers. Marketing actions are designed and strategically delivered to reach this demographic. Targeted advertising seeks to directly address prospects who are most likely to convert : your 'target market'.

Like an arrow, targeted advertising seeks to hit the 'bull's eye'. 

How to Define a Target

Targeted advertising requires the development of a detailed audience/ user profile. This information includes consumer traits, behaviours and demographic information (such as location, age, gender, occupation and more). The fundamental question to ask is 'who' - who is your potential buyer?

Who is your target audience?

A target audience comprises two groups:

  1. New Customers - those who want to buy your product and have the resources to do so.
  2. Existing Customers - those who have purchased and may do so again.

Marketing is about people. Targeted advertising requires a statistical profile of new and existing customers relevant to your business. Reach your target market by getting to know your customers better.

Targeted Advertising Saves Money

The broad goal of any advertising campaign is to increase profitability while minimising costs. A targeted advertising campaign saves money in that resources are channeled to a highly specified market or target. ROI increases as prospects are engaged more efficiently.

Targeted Advertising & New Media

New online media has enabled audiences to be tracked. For example, Facebook advertising uses profile information to allocate advertising matched to your details. Internet search results are influenced by demographics and search terms. Online and mobile behaviours can be predicted on the basis of patterns monitored via cookies and tracking codes. 

Targeted Advertising is Effective

A study by the Network Advertising Initiative (2009) determined that targeted vs non-targeted advertising yielded 2.7 times more revenue. Users were are twice as likely to convert upon click through. Targeted advertising provides an increased ROI. Targeted Advertising enables marketers to reach audiences with less expenditure. See the report here.

A better understanding of your target market will inevitably inform all aspects of your business from advertising to operations and management systems. Logo design, branding and social strategy should be integrated to effectively communicate with your customers. Take the time to understand your audience and tailor your marketing accordingly. 

Roundhouse can help you deliver a highly targeted advertising campaign. We have over 20 years of design and advertising experience, both online and offline.

Do you need targeted advertising for your next campaign?

Talk to Roundhouse. We can help.
Get started with an obligation free consultation.


by Saul Edmonds