Understanding your audience is crucial in modern advertising.
If you don’t know who you’re trying to reach, or if you aren’t successfully reaching those people, your business is probably not realizing its full potential.
What Are Addressable Audiences
Addressable audiences are specific groups of people that advertisers target based on location, demographic, habits, and preferences.
By using data tracking and digital identity resolution, businesses can maximize their profits by addressing the exact consumers who are most likely to engage with their content or products. Over time, addressable advertising allows you to gather valuable insights about consumers, such as their behavior and interests, so that you can deliver more efficient and effective marketing campaigns.
Basically, instead of throwing paint at a wall and seeing what sticks, addressable audiences allow advertisers to pinpoint their targets and appeal directly to them, yielding more engagement, better results, and higher profit.
Sounds great right?
What Are the Drawbacks of Targeting Addressable Audiences
Unfortunately, there are a few obstacles to seamlessly tracking information and reaching the customers you want.
Third-party cookies are about to become a relic of the past, meaning advertisers will need to use other methods of obtaining consumer information to track their ads.
Plus, consumers already might feel reluctant to share their information, so advertisers may struggle to gain insights because consumers are declining to share anything about themselves. Now that smartphone apps ask consumers whether they want their behavior to be tracked, a standard will be set across the industry that limits what advertisers collect for their benefit.
Emails, downloads, surveys, and unique conversations between consumer and advertiser will become much more important in the new age of advertising.
Restricted or limited tracking can lead to inaccurate or incomplete data, which can negatively influence ad campaigns that are operating under a faulty strategy. Beware of this and other factors when analyzing consumer data because a highly successful ad may be a one-time occurrence, while a poorly performing ad could be an outlier as well.
Finally, targeting to a specific audience means you can bypass a lot of competition in the broad sense, but you will need to compete with other advertisers who are in the exact same industry as you, which means expectations of potential consumers will be much higher than casual consumers.
With this in mind, advertisers need to constantly change their strategy to stay fresh in their particular space because consumers will be looking for new approaches to grab their attention.
What Are the Main Benefits of Addressable Audiences
Now back to the perks. Addressable audiences drive conversions and generate revenue by delivering targeted messaging to increase the chances of reaching people who are looking to receive the ads they’re seeing. Those people may feel excited to see your ad instead of brushing it off as something intrusive or annoying.
When others find value in your ads, you discover value as a business, and it’s a better investment of advertising dollars.
Advertisers can capitalize on as much information as people are willing to reveal about themselves. It can start basic willing to reveal about themselves. It can start basic with location or gender, but it can dive much deeper, reaching people who are shopping for particular items at certain times of the day or people who have visited your website and made a purchase in the past.
This allows advertisers to retarget audiences who previously engaged with their ads, tapping into concepts like brand loyalty and item preference.
Advertisers can also engage with people across devices. Addressable advertising enables advertisers to reach consumers via smartphones, laptops, tablets, and connected TVs. This helps to create a consistent and seamless advertising experience across different screens and platforms.
Tracking Results and Reporting
With the power to target comes the power to track results. After a campaign, you can sort the engagement by audience type to see where your strategy worked and where it didn’t. From there you can customize your campaign better for future improvement.
Overall, addressable audiences are still going to be a powerful tool for advertisers, but there will be necessary growing pains and adjustments as businesses find ways to connect with their audiences on the same level they have in the past.
Tap Into Targeted Advertising with Compulse!
Discover how easy it is to increase engagement, profit, and capability.
The Compulse 360 Platform combines state of the art marketing technology with best in class media services including CTV Advertising, Linear Media Planning and Buying, Programmatic Advertising, Paid Search and Social Media Advertising, Email Marketing, and much more!
Request a Demo Today!