Targeting is the process through which an advertiser identifies users that they would like to reach and then advertises to them through various channels. By constructing the right user persona, understanding user habits and finding the platforms to reach them, an advertiser uses targeting to improve the performance of their campaigns.

What is targeted marketing?

Q: Why is Targeting Important?

Targeting improves advertising performance across the user acquisition cycle. While targeting is seen as a way of increasing interaction rates with adverts, it should also improve other metrics further down the funnel, like retention and monetization. This has a number of positive effects for an app business. It increases the likelihood that the right types of users for a particular app will install it, and that they will perform in a way that you want them to. It also makes it more likely that other benefits of a positive user experience (such as word-of-mouth recommendations) occur. While targeting might principally take place when an advertiser sets up a campaign, the true benefit of taking targeting seriously should be felt across the whole of the business.

Learn how to make ads more engaging for your target audience with a well-crafted mobile targeting plan.

Glossary Targeting

What is audience targeting in marketing?

Undifferentiated marketing is when marketers approach advertising for all customers with the same strategy, regardless of any differences in demographics. On the other hand, a targeted marketing strategy, also known as a differentiated targeting strategy, is the exact opposite. Targeting in marketing means prioritizing high advertising relevancy by:

Defining a target audience and segmenting that audience based on common traits.
Customizing ad sets for those segmented groups.

While targeting principally takes place when an advertiser sets up a campaign, the true benefit of targeting effectively should be felt across the whole of the business. There are many benefits of targeted advertising, including:

Improved performance across the mobile app marketing funnel.
Increased ad engagement rates.
Lower churn rates.
Higher user retention rates.
Greater average revenue per user (ARPU).

This is because personalized ads increase the likelihood that the right types of users for a particular app will install it, and that they will remain engaged and willing to spend money in-app. It also makes it more likely that other benefits of a positive user experience (such as word-of-mouth recommendations) occur.

Ad targeting can be defined by a wide range of criteria from demographics or behavior to the type of devices used. We’ll discuss these in length, alongside the advertising strategies and marketing channels used for reaching potential customers with targeted ads.

Targeting strategies in marketing

There are several digital advertising targeting methods that can be used, from more broad differentiated strategies to highly personalized strategies.

A multisegment targeting strategy is when an app tweaks its advertising campaigns to cater to various segments across its target audience. This audience targeting strategy is the most commonly used.

A concentrated targeting strategy is when an app focuses most of its advertising efforts on one particular segment of its target audience. This audience targeting strategy is sometimes referred to as niche targeting.

A micromarketing strategy, also known as micro-targeting, is an extreme form of a targeting strategy. Micro-targeting is when an app customizes its ads or messaging by the individual user with hyper-personalization.

Which targeting option is best for achieving brand awareness?

Use an undifferentiated marketing strategy for full market awareness. However, a multi-segmented marketing strategy is best for achieving brand awareness within your target market, which provides a better return on ad spend (ROAS).

Which targeting option is best for influencing consideration?

A concentrated marketing strategy is best for influencing consideration, while a micromarketing strategy is best for influencing conversion.

Types of targeting in marketing

With advancements in technology, there are now multiple types of targeting available for marketers to reach potential customers more effectively. Each technique has its advantages and disadvantages, making it crucial to use a combination of approaches to reach the right audience.

What is demographic targeting?

Demographic targeting is the segmentation of a target audience based on specific demographic characteristics, such as age, gender, income, education, occupation, and/or marital status.

Demographic targeting example: For instance, an app that sells baby products may target expectant mothers or families with young children.

What is contextual targeting?

Contextual targeting advertising involves showing ads to users based on the content they are currently consuming. This could be based on the content of a webpage they are visiting, a song they are listening to, a game they are playing, or a show they are watching, among other examples.

The goal of contextual targeting is to match the ad content to the user's interests and needs in real-time, making the advertising experience more relevant and useful to the user. Contextual targeting algorithms analyze the keywords, themes, and topics of the content, and then serve ads that are related to the content.

Contextual targeting example: If a user is reading an article about gardening, contextual targeting may show them an ad for a plant identification app.

What is behavioral targeting?

Behavioral targeting advertising entails collecting consented data on a user's browsing history, search queries, app usage, and/or in-app purchases (IAPs), among other digital activities, to create a profile of their interests and preferences. This data is then used to display targeted ads to the user based on their past behavior.

Behavioral targeting example: A user frequently visits sports-related websites. Behavioral targeting may show them an ad for a sports apparel app or a sports streaming app. To use behavioral targeting well you must have a solid user opt-in strategy in place.

What is geo-targeting?

Geo-targeting, or location-based mobile targeting, is the use of a user's location data to deliver more personalized advertising content. This data could be a broad geographic location, such as a city, state, or country. Or, it could be data based on geofencing.

Geofencing involves creating a virtual boundary around a specific geographic area, such as a store or event location. Once a user enters the designated area, they can receive targeted advertising content, such as push notifications or in-app ads, based on their location and behavior.

Geo-targeting example: A restaurant chain may use location-based targeting to send targeted ads to users who are near one of their locations, offering them special in-app deals or discounts.

Mobile targeting and Adjust

Targeting is essential to the success of any mobile marketing campaign. Identifying and analyzing segments of an app’s existing user base (cohort analysis) is necessary for successful targeting, as this will help pinpoint the kinds of users that an advertiser needs to pursue.

Adjust helps advertisers and marketers identify who to target with the aid of our Audience Builder. Our mobile app attribution tools and streamlined analytics dashboard also help advertisers measure the effectiveness of targeted campaigns to optimize ads for maximum ROI. Learn more about Adjust’s suite of products to help you on your targeting journey.