1. What is targeted advertising?
a. How is it revolutionizing the advertising industry?
b. How is this affecting newspapers and TV?
c. Is targeted advertising desirable for all firms?
Targeted advertising is advertisement that is placed to reach consumers based on various traits like demographics, firmograhpics, and behavior variables. These ads are ranked based on relevance which is determined by how often the ads were clicked on by the computer user. This was a push forward for the advertising industry because it provided valuable feedback to advertisers and helped influence selling. For example, potential customers who search for information on a topic will see these intrusive ads without them even having to search for a product or service. It will just show up based on their search. This can oppose a threat to newspapers and TV ad campaigns because this advertising eliminates the waste of most of the mass advertising being viewed by a vast audience with no interest in the product. The cost of TV ads can sometimes cost millions of dollars while it is only gaining maybe 100 new first-class customers. TV and newspaper ads cannot compete with targeted ads because they can effectively reach the audience they are trying to reel in while TV and newspaper end up spending more money for a smaller amount of people. These ads can be beneficial for only larger firm rather than firms with not a lot of awareness. If a firm is not well known, and people haven’t heard of the firm than it’s not worth it. It is desirable because it allows advertisers to determine user preference and purchasing habits. These ads are more useful to the consumers. The targeting of advertising can lead to higher profits. 2. What are the various directions for innovation to take? Can a mature firm in a stagnant industry pursue innovation? How successful is this likely to be? The search for new opportunities can be desirable for any industry or firm. For Google innovative thinking is very...
Please join StudyMode to read the full document