Targeted Marketing

Targeted marketing is a type of advertisement where advertisements are served online or placed on TV to reach consumers based on various characteristics such as demographics. For example, their gender, age, or race, their purchase behavior, or some other observed behavior like what they listen to, or TV viewing. Sometimes, even, they use who their consumers’ friends are. If a firm can identify who’s likely to buy their product, target marketing can enable firms to spend advertising dollars only on those that they think are likely to buy their products.