Last week I wrote a blog about mobile app monetization and using in-app ads to make revenue on a free app. This week – I want to talk about another advertising strategy that is emerging more and more that I like to call extreme ad targeting.
What does this term mean? Let me give you a little scenario. I was on Facebook the other day, scrolling through my news feed and this ad pops up at the top with a picture of my mom with an ad about buying her a mug with her “mug” (photo) for Mother’s Day. That is pretty targeted. Obviously they were using the fact that I have her listed in my Facebook Family Tree as my mom to target me for the ad. This is pretty extreme targeting, not only reaching out to me to advertise a mother’s day gift, but using a pic of my own mom to get my attention was pretty clever.
Facebook’s advertising platform is actually pretty interesting. It allows businesses to target the right individuals based on location and the things they like. I, for instance, often see ads and promoted posts that deal with fitness, because of the pages I have “Liked.” I also see pages that my friends like.
More Examples of Extremely Targeted Ads
I have seen some other examples of this trend. Back before I started paying a monthly subscription for music streaming, I used to hear a lot of ads. Unfortunately I was not smart enough to pay for my subscription before the election last year, and pretty much every ad I heard was from the candidate for the party of which I am registered.
The last time I went to the grocery store, I noticed that I got some coupons for the chicken sausage I was purchasing that day, which makes sense. But I also received coupons for things I hadn’t purchased for over a month. My purchases are tracked by using the grocery store loyalty card. Grocery Stores themselves are actually a mecca of advertising and promotions. I could write an entire blog about how everything in the store is strategically placed to entice you to buy things.
Does it Work?
In a recent survey by the Digital Advertising Alliance, 92% of Americans would prefer that important things like news, weather, blogs and video content stay free through online advertising. So at least consumers are expecting to see ads. And nearly 70% said they would prefer ads that were targeted to their unique interests.
Also, 42% of consumers polled claimed they purchased something from an ad they saw online. A global mobile media study by InMobi found that 45% of respondents said mobile ads influenced an in-store purchase, and 46% say mobile ads influenced them to buy via mobile.
I would say those numbers are pretty compelling. Not only are consumers expecting to see ads, they actually want extreme targeted ads because they are more exposed to the things that matter to them. It makes a lot of sense. I actually appreciate when I save money on a new pair of shoes, or learn about a new running accessory that makes running more enjoyable. I don’t care if I learned about that via an ad.
I hope the trend of extreme ad targeting continues, as long as advertising companies don’t get creepy about it and start really stalking me or selling my private information!