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Microtargeting in Digital Marketing: What it Is and How it Works

Digital Marketing

In this day and age, there’s plenty of data available to brands. The world has shifted online, and that means everyone is leaving digital footprints everywhere they go.

From the websites you visit, the apps you use, and the social media platforms you check in to, there’s an abundance of data that brands can use to better understand what their customers want.

Having an influx of data presents many opportunities for brands since they can use this information to make better decisions. Understanding the characteristics and preferences of their customers can tell them a lot about how they should sell products or services, what kind of promotions to run, and how they should interact with their consumers.

All of this revolves around data-driven marketing tactics where brands can create top-performing ads that can reach the right audience at the right time. Factors such as the timing and location of the ad play a key role in determining how successful it will be, often resulting in a certain number of views and engagement.

To ensure targeted advertising, brands should be able to gather customer data effectively. Microtargeting marketing is one way companies do this, but what exactly is Microtargeting?

What is Microtargeting?

Microtargeting is the process of using information that you have about a user to connect with them in a more personal way. It’s enables tailor-fit marketing messages and allows businesses identify potential customers.

Microtargeting is often done with data gathered from social media platforms like Facebook or Twitter. This data includes what users post to their profiles, their interests, and the other people they interact with online. Companies can use this information to send targeted ads or promotions directly to users based on their specific interests.

How Does Microtargeting Work?

Microtargeting can be accomplished using cookies, tracking pixels, and other methods of collecting data about consumers’ online behavior and preferences (such as what websites they visit or what products they search for). This information gives brands a better picture of who their audience is so that they can create engaging content that speaks directly to those people’s needs.

The goal of microtargeting involves collecting data about your customers, then using that data to send them personalized advertisements that they’re more likely to respond to than general advertisements.

How is Microtargeting Different from Regular Targeting?

In essence, microtargeting functions the same way as regular targeting. Both methods make use of big and propriety data to be able to reach the right people at the right time. However, microtargeting takes this process up a notch by making use of more personalized data.

In regular targeting, data is used to identify and target audience segments. But in the case of microtargeting, consumer data, individual interests, and demographics are analyzed further to help entities reach small groups and individuals. The capabilities of microtargeting are so great that it can be used by politicians and other entities to determine the political affiliation of people and potentially influence them.

The Impact of Microtargeting on Digital Marketing

Microtargeting is a powerful tool for getting your message in front of the right people by allowing you to precisely determine whom you want to reach, and then show them ads that are relevant to them. The process works by looking at a person’s interests, behavior, and relationship with the brand to predict how the person will react.

For example, if a company has been advertising on Facebook for a while, they might be able to determine that certain users are more likely than others to click on ads for reduced prices or free shipping—and then target those users with specific ads about those offers.

Data-Driven Marketing: How Microtargeting Enables Targeted Advertising

Microtargeting uses data to find out what makes your audience tick—what they like and don’t like about your product or service and then optimize ads for them based on that information. This means you can get very specific about who sees what ad, so that each customer receives a relevant promotion.

This strategy can be a great way to improve brand reach because it allows you to expand the audience for your message. The amount of data involved provides several growth opportunities because it enables targeted advertising, often resulting in more accurate marketing campaigns.

Below are seven ways on how microtargeting enables data-driven marketing.

  • Improves audience segmentation

Microtargeting helps improve audience segmentation by allowing advertisers to more accurately identify groups of people who are more likely to be interested in their products.

Businesses can analyze the online behavior of users (such as what websites they visit), the demographics of their area (such as age or income level), or even psychographic attributes like personality types or even political leanings.

This information can then be used to target specific groups of people through digital media channels like social networks or search engines.

  • Enables consistent and relevant brand messaging

When you are able to target your audience directly, you are able to ensure that they receive consistent messaging that is relevant to them. This strategy means that if someone loves sports and sports happen to be part of your product or service, then they will see ads about horses more often than someone who doesn’t like sports.

  • Helps create better decisions

Microtargeting helps create better decisions in two ways: first, by providing insight into customer behavior, and second, by providing insight into competitor behavior. By understanding customer behavior, businesses can learn more about what their customers want and how they behave online.

Simultaneously, by understanding competitor behavior, businesses can learn how other companies are reaching customers online and how they are performing compared with each other. This knowledge can help determine which strategies will be more effective for reaching new customers or increasing sales among existing ones.

  • Drives Sales

Because microtargeting focuses on a specific audience, it enables opportunities for companies to grow and increase sales. The target audience is more likely to engage with content that the company provides, and if you combine that with putting the content on the appropriate platform, the more likely it will drive engagement and sales.

  • Allows you to scale your business

Business owners need to put their time and resources into different aspects of the company. If one part of the business takes up too much time, it can hinder other aspects of the company, potentially hurting its growth. 

Through data-driven marketing and microtargeting, you can easily pinpoint potential customers quickly, allowing you to focus on company growth. Data collection has become invaluable for many because it gathers customer information that can help businesses optimize their strategies. 

One thing to remember is that data privacy plays an integral role. By ensuring your customers that their data will be safe, they will most likely continue doing business with you, eventually establishing trust.

  • Provides you with invaluable insights

As mentioned, companies are able to gather information about their customers ranging from the content they consume to the platforms they use. These pieces of information become key insights into what a business can do further entice its audience to continue engaging with the company.

One example is if a brand notices its consumers gravitating towards them more if there is a free shipping voucher available. What they can do is offer more of these vouchers so customers will continue to go back to them. The situation varies from company to company, so you need to determine what your key insights are.

  • Enables you to see what works and what doesn’t

In relation to the previous point, understanding insights can help you see what works for your company and what doesn’t. What works can be related to positive outcomes from your target audience, like good reviews and recommendations. If something doesn’t work, it indicates points for improvement and can help you adjust your strategies.

Breaking It Down

Microtargeting is a great strategy that enables you to break down your target audience and learn about their behaviors. It provides you with numerous opportunities to grow and expand the business’s reach while allowing you to run other parts of the company smoothly.

That said, there are ethical implications when you use customer data, so it’s your responsibility to handle the information you have carefully and professionally. 

If you’re looking for a digital marketing agency in the Philippines to work with, Spiralytics has an experienced team that’s ready to work alongside you! We have the tools to help you reach new heights, so if you want to start now, contact us today!

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