You may have had some peculiar experiences with recent online advertisements. For example, you may have opened an email from Target that spoke to you on a first-name basis. Or, you may be an expecting mother whose Facebook timeline is conveniently packed to the brim with Johnson and Johnson ads. These aren’t just vague, impersonal ads — rather, these ads seem to be speaking to you, just you.
However, these kinds of ads are new, and they may even seem a little creepy. Surveys are finding that customers prefer advertisements that cater to their interests, needs, circumstances, and identity generally. It’s looking more and more like personal advertising is the next big thing in advertisement.
Personal advertising seems to provide many advantages, one of which is a higher conversion rate than other forms of advertising. Personal ads take into consideration the things that are important to that customer based on previous transactions, web searches, etc. A good example is Amazon’s system: Amazon tracks your purchases and views on its website, and it then recommends items related to those items purchased or viewed. Common sense would have it that a web user is far more likely to pursue a product that they are interested in and/or care about, which explains the heightened conversion rate with personal ads.
Efficiency, when talking about advertising, is the amount of advertising required before a customer makes a purchase or signs up for a service. Winning over customers becomes a pyrrhic victory if it takes 20 advertisements and millions of dollars. It seems that personal advertisements are far more efficient than traditional advertisements; even though customer conversion hinges on a plethora of variables, personalization appears to increase the effectiveness of a company’s ads. Considering how much companies spend on advertising, personalized ads could really push a business to the next level.
Meeting Consumers Where They Are
Though personalized advertising may require a good deal of work in researching consumer behavior patterns, preferences, etc., the returns can’t be denied. Companies who use personalized advertising note higher conversion rates, efficiency, and user engagement, which means more profit.
The reality is that personalized advertising is still in its fetal stage. Having said that, there are many great ways to work it into your business. Data-mining and behavior analysis may sound intimidating and time-consuming, but there are platforms that actually make personalized advertising fairly easy. Companies should consider adding personalization to their marketing campaigns to get ahead of the game, considering the initial success and the untapped potential that comes with time. Do not hesitate to contact Cyrux Smart Solutions Inc. for help managing your business at (416) 222-0035!