How Targeted Advertising Works

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Targeted advertising (also called targeting, target and often confused with contextual advertising on social networks) are advertisements that are linked to information found in users’ profiles on social networks.

On the VKontakte network it looks like this:

Targeted advertising in social networks

On Facebook, targeted advertising is located on art director email list the right side of the screen:

Targeted advertising in social networks

The term "targeted advertising" comes from the English word "target", which means "goal". It turns out that we are talking about targeted advertising that hits precisely the audience that is most likely interested in purchasing the product or service being promoted.

Based on the experience of many companies in various sectors of the economy, we can confidently say that targeted advertising is one of the most effective ways to increase sales of products. Only word of mouth and recommendations from regular customers to their friends and family work better. That is why targeting is in such demand.

Contextual and targeted advertising: what is the difference
Targeted advertising in social networks

The main difference is who the ads are shown to. When placing targeted ads, all potential customers from the target audience will see information about the product or service, and it does not matter whether they searched for information about the product on the Internet or not.

The ad will be shown even to those who are hearing about your company for the first time, but these users are potentially interested in you.

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Alexander Kuleshov
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Contextual advertising is visible only to that part of the target audience that is currently searching for information about your product or service in the search engine. Contextual advertising is configured for specific key phrases that users enter in the search engine.

Thus, contextual advertising appears as a response to search queries of the target audience, and targeted advertising itself finds its consumers, focusing on key parameters (gender, age, location, hobbies, interests, etc.).

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If you have a portrait of your target audience, then with its help a targeted advertising specialist will be able to easily customize advertisements for specific groups of users.

Advantages and Disadvantages of Targeted Advertising
Targeted advertising provides the following benefits to the company:

Unlike traditional media advertising, you show your ad to a narrow group of potential customers. This significantly saves your advertising budget.

With the help of targeting, you can attract customers from your competitors.

It's very easy to set up, test and launch targeted advertising.

Visualization of the advertising message (not only text, but also images).

The main disadvantages of targeted advertising:

Users are poorly motivated to click on an ad. They visited a social networking site, perhaps to scroll through a news feed, and had no intention of reading the ad.

Low conversion rate.

There are restrictions on advertising certain types of products or services (alcoholic beverages, cigarettes).

Not suitable for every company.