Targeted advertising

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Targeted^[1] advertising or data-driven marketing is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting.^[2]

These traits can either be demographic with a focus on race, economic status, sex, age, generation, level of education, income level, and employment, or psychographic focused on the consumer values, personality, attitude, opinion, lifestyle, and interests.^[1] This focus can also entail behavioral variables, such as browser history, purchase history, and other recent online activities. The process of algorithm targeting eliminates waste.^[3]

Traditional forms of advertising, including billboards, newspapers, magazines, and radio channels, are progressively becoming replaced by online advertisements.^[4]

Through the emergence of new online channels, the usefulness of targeted advertising is increasing because companies aim to minimize wasted advertising.^[4] Most targeted new media advertising currently uses second-order proxies for targets, such as tracking online or mobile web activities of consumers, associating historical web page consumer demographics with new consumer web page access, using a search word as the basis of implied interest, or contextual advertising.^[5]