Technologies in Advertising

Advertising is not only a way to promote goods and services, but also a form of communication with consumers. Therefore, it is important that advertising is not only beautiful and memorable, but also consistent with the interests, needs and preferences of the audience. This is where technologies come to the rescue, allowing you to collect and analyze consumer data, create effective and personalized advertising. The purpose of this article is to look at how technology can help create effective and personalized ads.

Cookie

These are small files stored on the user’s PC and containing information about his visits to sites, page views, purchases, preferences. Cookie tracks the behavior of a person on the site, shows ads in accordance with interests.

Social media

They provide a large amount of information about the user’s personality, his friends, hobbies, opinions. Social networks track the user’s activity, their responses to advertising, involvement in communication with brands.

Personalized advertising

Using consumer data, advertisers can create more accurate ads tailored to the individual characteristics of each user. One of the ways to create personalized ads is retargeting – this is showing ads to those users who have already visited the advertiser’s website or were interested in his product or service. Retargeting increases the likelihood of a repeat purchase or conversion.

Many companies are successfully using technology to create personalized ads. For example, Amazon uses purchase and search data to provide personalized product recommendations. Netflix uses data about movies and TV shows watched to show recommendations for similar content. The Coca-Cola Company uses technology to create personalized cans with consumers’ names and show them ads featuring people with the same names.

Advantages and disadvantages of using technology in advertising

The use of technology in advertising has its advantages and disadvantages. Among the advantages stand out:

• Increasing the effectiveness of advertising. Technologies shows ads to users who are most interested in a product or service. Their interests, needs and preferences are taken into account. This increases the likelihood of a click, purchase, or conversion.
• Increase in conversion. Tracking the results of advertising campaigns and optimizing them in accordance with the goals and budget. This improves the efficiency of advertising spend and helps you earn more profit.
• Better understanding of customer needs. Technologies collect and analyze information about consumers, their behavior, interests, and opinions. This helps advertisers better understand the audience, their concerns and desires, and create more relevant and satisfying products or services.

Among the shortcomings are the following:

• Data privacy issues. Technologies for collecting and analyzing consumer data may violate the rights and freedoms of users to protect their personal information. Many users do not want their data to be available to third parties or used for commercial purposes without their consent.
• Possibility of unwanted advertising. Technologies for creating personalized ads may result in users receiving too many or inappropriate ads that may annoy or put them off.

We learned about technologies such as cookies, social media and retargeting, which collect and analyze information about user behavior on websites and show them ads that are relevant to their interests. We have come to the conclusion that technology is an important tool for promoting products and services, as well as for communicating with consumers.