How do targeted ads increase return on investment?

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How do targeted ads increase return on investment?

Did you know that ninety one percent of consumers are likely to purchase your products or services when your communication is personalised for them? Targeted ads are messages focused on your audiences demographics; who they are, what they like, and what they want to purchase. Targeted ads help you reach your ideal audience with a relevant message, maximising your return on investment (ROI).

What are the Benefits of Targeted Advertising?

Targeted ads are behaviour-based advertising. It collects and analyses online activity, using the data to determine what ads to show the user. This is done by collecting cookies, location information, and mined data.

When using targeted ads, you increase the chances of conversions, improving your campaign performance, resulting in improved return on investment. Social media advertising is a great targeted advertising opportunity, providing you with valuable insights and data regarding consumer preferences and behaviours, helping you make data driven decisions regarding your marketing strategy moving forward.

How do targeted ads increase return on investment?
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Identifying Your Target Audience

As a business owner, you know not everyone is going to be interested in the products and services you provide. This is why its so important to identify your target audience. Audience segmentation and retargeted tools help you tailor your adverts to specific interests, behaviours, and demographics.

Social media ads offer excellent benefits when it comes to targeted advertising. Take Facebook, for example, you can target your adverts based on three audience types:

Choosing the Right Advertising Platforms

Your audience is the most important factor when deciding which platform to advertise on. Facebook tends to have more of an active audience than other networks. Choosing the right platform ensures your targeted ads are effective, increasing your return on investment. It's recommended to have a look and see what platforms your competitors are active on. If your competitors are doing well on TikTok, but not on Facebook, then this is a sign that you need to be advertising on TikTok as well.

Advanced Targeting

Thanks to the advanced targeting options offered on Facebook, you have the opportunity to reach an audience who are more likely to be interested in the products you offer, or they may have already shown their willingness to make a purchase in the past.

Engaging Campaigns

The biggest mistake many business owners make is posting the same content across all platforms. In order for our targeted ads to increase return on investment, you will want to tailor your content to the platform and its audience. Remember the content people are looking for on LinkedIn is different from what they want on Facebook, for example.

Advertising Budgets

Determining your ad spend is imperative when it comes to targeted adverts and enjoying a good return on investment. The majority of businesses spend up to forty five percent of their total marketing budget on digital marketing campaigns., of which up to twenty five percent is spend on social media targeted advertising.

Your digital marketing gaols play a role in determining your budget. Take note of your advertising spend, and track your results.

Conclusion

It's important to regularly monitor your advertising, determining what results they produce. Through regular monitoring you are able to adjust your campaign, optimising your return on investment and advertising budget. Our team are dedicated experts when it comes to targeted advertising, helping you maximise your return on investment. Get in touch with Genie Crawl today to find out more.

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