Targeted advertising is a popular method of digital marketing. Brands use it to find customers who may be more likely to pay for their products or services. This is partly based on their search history and shopping behaviors.
Let’s look at a simple example. If you often browse online for trainers, you’ll probably be targeted for trainer adverts. This can present an advantage in that you’ll see products that are relevant to you. But it can feel like an invasion of privacy – like someone is spying on how you shop.
So, how exactly does targeted advertising work? And is it a problem? Read on to find out more.
What Is Targeted Advertising?
Targeted advertising uses customer data to decide which adverts to serve them. It is different from generic advertising, such as that seen on television. This form relies on reaching millions of people hoping to appeal to a small percentage of them. Meanwhile, targeted advertising will focus on a smaller audience with the hope that it will interest a great proportion of them.
How Does It Work?
Around 91% of customers are more likely to purchase if a brand communicates with them directly. This premise is what underpins targeted advertising.
Doing so involves the collection of customer data using third-party cookies. These track your browsing history, your interests, and your demographic. Ad networks then use this information to display ads that they believe would interest you.
Is Targeted Advertising an Invasion of Privacy?
This form of marketing has raised privacy concerns. Many consumers feel uncomfortable that their habits are being monitored. There’s also a belief that devices are set up to listen to your conversations and then target you with ads based on them. Governments have since introduced rules that restrict the collection of information. Customers in many countries now have the option to consent to third-party cookies.
How Can You Protect Your Data?
You can do a few things to protect yourself against unwanted targeted ads. For example, you can use a virtual private network (VPN) online. A VPN encrypts your internet connection and hides your location and IP address. This makes it harder for ad networks to track your browsing activity.
You can also regularly clear your cookies to remove any stored data. Then there are ad blockers that you can install as a browser extension. These will block all adverts, so you may decide to disable them for sites that you are happy to see ads for.
