Targeted Advertising in a Digital Conscious Society

##### Today’s World: There’s no hiding from the Internet

In today’s interconnected, digital-world, it may seem almost impossible to hide your personal information. As technology evolves, more people are concerned about their private information being very public.

So when it comes to targeted advertising, where is the line between being creepy and being satisfying?

##### What is targeted advertising?

Targeted advertising is a form of online advertising that utilizes customers’ habits, interests, and preferences.

These could be a person’s demographic, buying history, or digital behaviors on social media. Advertisers discover this information by tracking your activity on the Internet.

##### How does it work?

When a person views a product on a website, the person’s browser keeps track of your visits by storing that information on your computer called ‘cookies’.

A cookie is a small code that allows ad networks and sites to share information based on what the person viewed. The automated advertisements read these cookies and generate ads for items similar to your visit.


Advertisers can also learn about your habits through your search engine history or finding information about you on social media.

The more advertisers know about you, the easier it is to assume your buying habits to try and sell you something that may appeal to you.

##### How our brains work: paradox of choice

As humans, our advanced brain allows us to make rational decisions. However, when faced with too many choices we suffer the “paradox of choice”. This is when we are given too many options that it becomes tough for our brain to choose.

##### How Netflix’s user interface uses your data to generate personalized recommendations

Instead of scrolling for hours to find a show or movie, Netflix presents content even before you think you want to watch it.

Netflix figures out which content is most relevant to you by using data points such as geolocation, time, weather, device, voice recognition, etc. Similarly, they have features like ‘Add to your list’, thumbs up or down ratings, ‘because you watched’ list, and presenting niche categories like “True Bromance”.

According to the American Customer Satisfaction Index, as of February 2019, Netflix has the highest customer satisfaction ratings of all streaming platforms, scoring [81 out of 100](https://variety.com/2019/digital/news/netflix-original-content-consumer-survey-ratings-acsi-1203144795/) for its original content. Followed by HBO Now scoring 79, Prime Video with 76, and Hulu with 75.

By delivering tailor-made content, it is much easier to keep customers engaged with your product, improve user experience, and, in-time, build loyalty.

The same goes for targeted ads. AboutAds did a study and found that when users were asked if they preferred seeing ads for random products or products that targeted their interest, [40.5%](https://www.grenismedia.com/blog/45-digital-and-targeted-advertising-statistics/#targeted-advertising-statistics) said they choose the targeted products. Only 27.6% of users had no preference seeing either.

##### Finding the Balance: How to keep customer loyalty and trust

Though it sounds a little scary, these strategies allow businesses to create more value for the customer through improved internet experience and loyalty.

Targeting the right people with the right message is the key to success and building trust. If you send the perfect message to the wrong audience, they won’t care to click on your ad. And that’s what marketing is all about.

Proper targeting will not only make your ads more appealing, relevant, and successful, but it can also lower your overall cost per click, which, in turn, improves ROI.