Digital technology has been highly influential in the field of marketing.
Companies around the world are expected to spend over $786 billion on digital marketing services by the year 2026. It will more than double in just six years.
As the digital advertising market grows, new trends will continue to emerge. One of the biggest trends is the shift towards targeted advertising. Some companies have started taking advantage of these benefits to compensate for rising competition, higher advertising costs, and increasing customer demands.
Companies are using different approaches to take advantage of targeted advertising. They are leveraging CDP software, which lets them have a single customer view. They can also take advantage of more nuanced advertising strategies to reach specific customers.
Companies move from digital marketing strategies based on volume towards more targeted audiences.
In the early days of digital marketing, companies focused almost entirely on scalability. The Internet gave them access to a massive untapped market. There were few competitors and the costs of reaching customers was incredibly low. The best strategy was to cast a wide net and get as many potential buyers as possible.
A lot of things have changed in recent years. Costs of marketing have risen dramatically. Customers have also grown wary of excessive spam and exposure to irrelevant advertisements.
As a result, some companies have started pivoting towards more targeted advertising strategies to increase their ROIs. These brands have discovered that targeted advertising provides a much higher ROI. Companies are expected to take advantage of these benefits in the future.
One fashion brand discovered the extraordinary benefits of targeted advertising through the Microsoft Ads network. Microsoft Ads has an audience network, allowing advertisers to restrict their ads to various demographic segments. They can target people based on profession, gender, age, recent search history, and other demographics and behavioral profiles. This company found that specific demographic targeting strategies allowed them to increase their conversion rates by 20% without paying higher CPCs.
However, many companies are still unaware of the extent of the benefits of targeted marketing. Some have started using targeted advertising to some degree, but are not taking advantage of all of their opportunities. For example, one survey found that only 24% of marketers use behavioral data to create targeted online advertisements.
What are some ways that marketers can use targeted advertising?
The benefits of targeted marketing are clear to anyone in the profession that looks at statistics. What measures can marketers take to benefit from targeted advertising? Some of the biggest opportunities are listed below.
Use long-tail keywords in PPC marketing campaigns.
PPC marketing is still one of the best ways to reach and convert new customers. However, it is becoming a lot costlier these days. Therefore, marketers need to be more strategic with their keyword selection process to keep costs in check.
One of the best ways to accomplish this is by using long-tail keywords. You will usually pay a lower cost per click when you use exact match targeting. However, you will pay an even lower cost per click if you find long-tail keywords that other marketers have not thought to test. If these keywords convert very well, you will have a much higher ROI.
There are different ways to find long-tail keywords. One option is to use broad match targeting and identify keywords in the keyword target report. Another idea is to use a tool like Keyword Sheeter or Ahrefs. You will want to experiment until you find the best converting keywords. Then, you will have a lot of great keywords to choose from.
Take advantage of remarketing features.
Many advertising platforms also enable you to use remarketing. In the past, you could even remarket to customers that interacted with your advertisements through different websites or other advertising platforms. But, unfortunately, Google is now getting rid of third-party cookies, which will make this more difficult or impossible.
However, you will still have the opportunity to use remarketing to reach customers engaged with your ads on the same network, since those remarketing strategies don’t rely on third-party cookies. This will allow you to increase your conversion rates. In addition, you can re-market to customers based on different actions they have taken, such as clicking various buttons on your landing pages, making previous purchases, or spending a certain amount of time on your landing page.
Targeted advertising will become even more important in the future.
Companies have started to appreciate the benefits of targeted advertising strategies. They are going to need to rely more heavily on them in the future. These approaches will help them increase their conversion rates and lower costs. As a result, there are all I will be higher and they will have an easier time sustaining a competitive edge, especially in more saturated industries.