Targeted advertising is a form of online advertising that focuses on the detailed qualities, interests, and preferences of a data subject. Advertisers discover this information by tracking an individual’s activity on the Internet.

Another description of targeted ads is a form of Internet advertising that distributes promotional messages to a data subject according to their specific traits, interests, and preferences. Companies get this information by tracking consumer profiles.

How Does Targeted Advertising Work?

When an organization wants to place a targeted ad online, they need to set up a campaign on an advertisement network. Those networks show ads to data subjects based on their data – demographics, buying history, or digital behaviour.

Advertising platforms often collect data from different sources. The most common of them are cookies on the websites you’ve visited. Cookies are simple defined as miniature files that store information about your on-site actions or purchases and transfer them to the Customer relationship management (CRM) or third-party services.

Another source of information that provides insight into consumer behaviour is search engines. They analyze search queries and users’ habits to obtain data in order to show them paid ads on the search engine results page.

Furthermore, advertising platforms get your data from social media profiles. Social networks store information about your age, gender, beliefs, preferences, etc.

Knowing the main characteristics and online behavior, advertising platforms can show you targeted ads on different websites. For instance, if you often browse garden products on eBay’s website, you may see ads from other garden retailers on various online platforms.

Businesses often use targeted ads to show consumers products they’ve viewed before. This method is known as retargeting. It helps businesses spark curiosity in ensuring consumers return to their websites and purchase the product.

It is clear, brands use a vast amount of data about a data subject to target their ads. Based on the information used, it is clear to distinguish different types of targeting. 

Targeted Ads and Privacy

The question is whether targeted advertising could be seen as an invasion of privacy. Possibly, however, all information you provide on the Internet can be tracked, whether it be search engine requests, social media updates, or the websites you visit; since it can be tracked, this information may return in the form of a targeted ad.

The more advertisers know about you, the more they assume about your buying habits. Age, gender, income, relationship status: Advertisers will take whatever they can get if it means they could sell you something.

For instance, the Facebook profile below contains biographical information that advertisers would love to know. According to the profile, this user is a young, art school-educated woman who lives in a big city. Based solely on this information, advertisers could send her numerous targeted ads that may appeal to her.

How to Stop Ads

First, a good rule of thumb for browsing online: Assume that nothing you do online is private.

Next, if you simply want to stop seeing ads, download an ad blocker for your web browser, which should get rid of most of them. To prevent advertisers from tracking your information altogether, you have a few options:

Go to the Privacy settings of your web browser, then delete your cookies and ask websites not to track you.

Visit an opt-out site like About Ads and request that participating ad agencies stop tracking your information. While it will not completely eliminate targeted ads, it will significantly reduce them.

Reduce the amount of information you share on social media, giving advertisers less to learn about you.

Also, all web browsers have a private browsing mode that doesn’t record your history or cookies. However, this mode will not prevent targeted ads, as advertisers can still track you in other ways, like your search engine history and social media information.

Online ads aren’t going away anytime soon, and targeted advertising is proof that advertisements have adapted to the changing tastes and habits of consumers. Now that you understand how advertisers learn about you and your online activity, targeted ads should no longer surprise you.

Today’s Challenges For Targeted Ads

Privacy concerns over how targeted ads use tracking information have risen over the last couple of years. Targeted ads rely on collecting data from users’ web activity, making some users feel like the ads are intrusive and they are being watched.

The prevalence of big data has also brought data concerns to light. As such, governments across the globe have set up consumer privacy laws that protect consumer data.

This prompted tech companies like Apple to develop opt-out features that prevent apps and websites from collecting data from users. This has challenged app developers and marketers alike to adapt and look for more creative ways to collect data.

However, contrary to what most consumers may think, most digital apps and platforms collect fundamental information. When they do gather data on online behavior, the information is used strictly for user experience purposes.

What Should Platforms And Apps Do?

Given the prevalence of ads in the digital space and the importance of targeted ads to the overall online experiences of consumers, developers should consider designing apps and platforms that have the ability to connect to ad networks.

Ad networks allow platforms to share information and follow user behavior across the internet. If an app is built without connection to an ad network, it can take a long time for the ads to become more targeted and customized. Innovative platforms can provide seamless and nonintrusive ad experiences, thereby boosting the overall user experience.

Also, platforms might want to invest in innovative technology solutions that will allow them to modify their systems to accommodate targeted advertising and offer ad space to brands. This can personalize the user experience, boost their revenue, drive traffic to their sites and increase the average time spent on their platform.

Finally, companies and brands should consider implementing smart ad tools that utilize consumer insights to create ad experiences that resonate and provide value to their target audiences. This helps brands deepen their relationships with their prospects.

Key Takeaways

Ads have become a big part of user experiences in the digital space. Because of this, brands should consider capitalizing on the opportunities presented by targeted advertising to reach consumers who are genuinely interested in what they have to offer. And websites and app platforms should provide advertisers with the ability to do targeted advertising.