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Up to three or four decades ago, knowing one’s customers was more easily said than done: collecting and processing relevant information was as costly as adjusting the product range and prices on a regular basis. So, according to their model, sharing customer data that can be used for price discrimination can turn out to be a profitable strategy for competing firms. The second reservation is that there are two reasons for which consumers may not necessarily suffer from the firms’ increased ability to discover details about them. It seems thus that firms end up benefiting – and consumers end up suffering – from targeted advertising, even if consumers have somehow the possibility to avoid the intrusion of ads. Express you own opinion and try to find on the web to which extend others share your opinion.
The biggest characteristic of the online advertising in compare with the offline advertising is for me the monopoly of Google with adwords in the sector. There is one notable exception: when Felix Baumgartner establishes the world record of the highest jump back in 2012, millions were watching the “Red bull stratos” ads and wanted to see it. As a Business Engineering student, I understand that advertising plays an important role in today’s economy and in every business model, but, as a costumer, I also understand that the misuse of advertising can greatly harm a brand. So, assuming that costumers tend to avoid advertising, it is very likely that targeted advertising will not be effective, because it won’t show the ads that the consumer would prefer, making the information about the consumers less precise. On the contrary, there are also many examples on how the advertising can go wrong, like it is the case of e-mails. To summarize, I consider that the wrong use or administration of targeted advertising can become an invasion to privacy and can lead costumers to develop a feeling of resentment towards the brand, becoming more harmful than beneficial.
This is the reason why a lot of costumers and even myself, would make use of an “ad-avoidance” tool if we have the opportunity. The online advertising or Internet advertising uses the Internet to deliver promotional marketing messages to consumers. For measuring the effectiveness of an advertising campaign, you need to go through a number of steps. In my second comment, I will try to describe what internet advertising is in general, how does it differ from offline advertising, how to measure its effectiveness and what does targeting mean. First of all, we can say that online advertising uses the Internet to deliver promotional marketing messages to consumers. The difference of the Internet advertising is that it offers more opportunities than traditional marketing. Marketing now cannot simply be promising something and hoping the consumers trust the advertisement. Nowadays, people are more likely to do shopping online, because it is more convenient and time-saving.
In this comment, I will first explain how online advertising differs from offline advertising.
Online advertising differs from offline advertising by the structure of online communications. Secondly, in order to assess the impact of online ads, advertisers must measure its effectiveness. For example, if a company develops its brand awareness by an online advertising campaign and wants to measure its effectiveness, the light should be shed on indicators related to display. Furthermore, users often tend to forget that if they can attend free websites, it is largely thanks to the advertising which indirectly finances publications. Personally, I do not consider dangerous that a company aims at consumer’s profile as it does not directly know his full name.
The big difference between advertising on the internet and offline advertising is measurability of the effectiveness of the campaign. The offline advertising, nevertheless more expensive, has less measurable effects for a company and do not allow to determine the number of people who have been affected and how. Moreover, website visitors have the opportunity to share the pages they visit on social networks.
Internet advertising allows to know more precisely his customer but traditional advertising remains still important to build a brand image. The first one, the placement-targeted advertising, concerns the ads that are displayed on specific sites in order to reach their usual users. As for me, I use the system in order to be reach by the more adapted ads, but I still pay attention to the information I give. On the other hand, I don’t think that an ads invasion has a good effect on the consumers. Moreover, I think that online advertising is too aggressive, omnipresent and so I use for a few year an ad-avoidance “Adblock”.
I have searched some reactions on the Internet and the online ad industry is by no means short of critics, with a “virtual army” of privacy organizations and consumer-advocacy groups decrying its methods. I understand why targeting online is important, and I don’t have anything intrinsically against targeting and segmentation.
Firms that have access to customer’s information of previous purchases could use this data to set a higher price (to discriminate) to those who are likely to pay this higher price. According to Fudenberg & Villas-Boas (2005) this Behavior-Based Price Discrimination is going to increase drastically because nowadays it is easier for a firm to gather online purchase information about their customers through cookies for example.
This leads to the follow conclusion; firms prefer no-privacy when dealing with myopic customers, but prefer privacy if consumers can foresee and anticipate BBPD.
Secondly, the internet advertising target more effectively than the traditional way of communication. Finally, the internet advertising could accelerate the purchase process thanks to online payments.
From collecting customer’s information and depending on customer’s behavior, firms are much easier to target advertising to attract consumer’s attention and customer recognitions are becoming more and more important. Television for example, whose content, in its beginnings, was produced by radio professionals, and gradually found his own variety of genres and formats. The advantages of online advertising can be considered in a way to reach your target audience, but are noticeably presentable. Through its high communication power and its high data capacity, can reach virtually all levels of society, reaching any target audience.
In social media there is a great interaction between users and contents, which are disclosed and passed by all. In my personal experience, I used to be really influenced by the ads and I really liked it before. The big difference with the offline advertising is the perception of manipulation and all the issues with life privacy. Since now several years, I automatically install the “ad block plus” software on my internet browsers. Internet advertising has several kinds format like Pop-up ads, banner ads, video ads and etc.
Facebook ads allow advertisers to drive customers directly to their website,also helps grow brand awareness.
Quit guessing with your Online marketing strategies and start seeing real results with the help of our experts.
Due to its well planned advertising system, Facebook has evolved into the world’s greatest social network. One general suggestion that new Facebook advertisers seem to ignore is to separate their ads by gender. Naturally, ad copy plays a huge role with any advertisement, and that is one thing you must test.
Copy that is lacking with a strong call to action statement has been proven over and over to be less effective. TIP: You Need a Facebook account to run Facebook ads but you do not need to be advertising a Facebook page. In the example above, Facebook is approximating for us that our ad targeted towards females ages 18 to 42 and live within 10 miles of Philadelphia, will reach 643,300 people.
Facebook even allows you to target profile interests including whether or not the person is in a relationship, shows an interest for dogs, works as a lawyer, etc.
Golden Rule: Since you only pay when someone clicks on your ad, you want to make sure that the only people clicking on your ad are those actually interested in your service.
These are the basics, we would love to help you advertise on Facebook, let us know if we can help. I would love to personally review your online presence and then assist your local business to establish itself as the highest ranking choice for your type of business in your area.
Content ratings help you understand the type of content you might find in an app or game, so you can decide if they are suitable for you and your family. If an app or game does not have a rating, it means that it has not yet been rated, or it’s been rated and we’re working to update the page. If you're a bit concerned that services associated with your Google, Yahoo or Microsoft account are increasingly using your e-mails and online activities to target advertising at you, then Targeted Advertising Cookie Opt-Out (TACO) is a handy Firefox extension to block them. TACO prevents over 100 different online advertising networks - including Google, Yahoo and Microsoft - from displaying highly targeted advertisements using the detailed information on your web surfing habits. The idea behind this motto is simple: the more information a firm has about its current and potential customers, the more it can segment its customer base into smaller groups, to which specific prices, product features and ads can be adjusted. When surfing the Internet, you must have noticed that the ads you are exposed to are closely connected to pages you visited or to items you bought (or considered buying) in the past.
For instance, the UK’s two big pay-TV operators will soon start showing targeted ads to viewers in 2013. Similar tools are also transposed to the off-line, brick-and-mortar, world.
The “surplus-extracting effect” is the one I described above: by knowing its consumers better, the firm can charge them higher prices (thereby reducing the “consumer surplus”, which is computed as the difference between the maximum price that a consumer would agree to pay and the price that she actually pays).
As this strategy is likely to harm consumers, the authors advise competition authorities to pay more attention to customer data sharing agreements and to include competitive price discrimination as a possible theory of harm.
On the one hand, targeted advertising may increase the relevance of the ads that consumers are exposed to, which is beneficial for them. This is despite the fact that consumers endogenously adjust their advertising-avoidance decisions and that (…) competition may increase for some available ad space.
Although they may gain by witnessing more-relevant ads, there are two negative consequences of improved targeting. If yes, do you already use (or intend to use) some ad-avoidance or do-not-track technology? He is attached to the Center for Operations Research and Econometrics (CORE) and to the Louvain School of Management, where he teaches courses in the fields of Industrial Organization and Managerial Economics.
The specialists of the advertising found that one of the best ads ever made, and it was an online ads because people were watching it on youtube mostly.

I use an ad-avoidance application namely ad block which is well known (and which I recommend). Indeed, I recognize that for some services like Spotify for example, this could be acceptable because a well music library is offer for free. This happens because marketing has been misinterpreted and consumers are being overwhelmed with information to the point that it has become an annoyance. It’s the case of all the videos that have gone viral and the advertising that people remember throughout the years. The advertising blitz came to the point where the e-mail services had to create a special folder for the huge amount of spam that their customers receive daily, and they even had to develop smart systems to automatically detect the spam, so that the costumers will not even have to interact with it. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. It includes email marketing, search engine marketing, social media marketing, mobile advertising, pop up and many types of display advertising as banners and skyscrapers. Internet is used across the globe and that makes the advertisements potentially viewable by millions of people. But when we browse some website, it will keep track, thus, it allow firms to do targeted advertising. When we buy something online, for example Amazon, it will record our shopping, then these websites will sell our information to those advertisers. By reducing the wastage created by sending advertising to consumers who are unlikely to buy, we might expect improved targeting to lead to lower advertising expenditures.
On the one hand, customers can use targeted advertising to find something they might like, so this can reduce search cost and save time. Indeed, publishers and ad networks could gather a lot of information and learn more about online users than traditional media. According to a survey from PwC (3), customised measurement tools are required to effectively monitor online advertising. These indicators are the number of impression of an ad, the number of “visible” advertisements, the number of advertisements viewed, exposure time, and so on. If companies know my desires and my habits, they have the opportunity to propose me products by which I might be really interested. Furthermore, it also depends on other parameters, for example the person is perhaps not in the optimal conditions for receiving a message. But I think we have to make a slight difference between two kind of internet targeted advertising. Obviously, it’s about products which are linked with the domain of the specific site.
If firms can collect such data and use it, what prevent internet users to be tracked for other purposes? On one hand, I see it as a way to reduce my searching cost on the Internet and thanks to it, I sometimes find out new interesting things in agreement with my passions.
Most argue Internet users should have more control over how and why their data is being collected and used as they move around the Web, and users should be able to better protect their own privacy. The differences between this new way of advertise that is the internet and the older ones such as papers, radio or television could be seen at different levels. Businesses which try to reach a international target market can do it now at a fraction of the cost than with the traditional media. The older media allow targeting but this targeting matches with geographical zones or points of interest. Indeed, a potential consumer who is interested in a particular product can directly by a simple click been redirected towards the firm site and consult more information about this specific product.
It’s enough that the potential consumer being interesting in a product, see information and price, which is less that his willingness to pay, and decide to buy it directly thanks to pc banking. After having information, the firm prefer to use this information to separate customers into different levels and offer different price and products depending on their different purchase histories.
Miguel Villas-Boas which discuss the relationship between customer’s situation and firm’s price discrimination.
However, with the presence of new media, is common, at first, the crossing of references and “language”, until the new media finds its own language and function. The internet itself brings with it several advantages: the messages are addressed to a specific audience, it may identify the interests of the consumers, there is access in all parts of the world, works 24 hours per day and 365 days a year, so people from different countries can have access to that information.
A well planned advertising program can provide the opportunity for an organization to increase the market share, sales, and record its name in memory of consumers – which is important for a brand not only want to survive in the market but also became preference.
Added to this that every day the number of people in a social network increases considerably and consequently also increases the traffic of all information. Nowadays large amounts of ads are diffused everywhere, and this amount is increasing every days.
But since now a couple of years, I arrived at saturation and cannot appreciate commercial as before.
The goal of the advertiser is to understand us more and more in order to target as better as possible to fix the price as high as possible. Even if they still have access to my information, I do not perceive the aggressiveness of the commercials and advertising. The main reason wasn’t my privacy, a lot of ads were intrusive in the website and you didn’t gain access to the content only after seeing these ads. Also, they are extremely targetable towards specific Facebook users based on demographics such as age, gender, location, interests, relationship status and much more – an issue that Google (Adwords) paid search advertising is not able to do. If you want to use this advertising format, you must be knowledgeable about the things that we are talking about in this article. If you know your target market, then you will know how to talk to them and use jargon they also use. But the bonus right now is that it is still in the beginning stages which means that it can only get better. You are welcome to bid lower than their suggestion, though Facebook might not show your ads.
It does not indicate that the app was specifically designed for that particular age, or if a certain level of skill is required to play the game or use the app. TACO works by placing "opt-out" cookies into Firefox which prevent the services from targeting you with ads. It is a pretty drastic tool.
We do not encourage or condone the use of this program if it is in violation of these laws. This includes to personalise ads, to provide social media features and to analyse our traffic. Thereby, the firm has the potential to increase not only its sales (by informing customers about – and by making them buy – products that are closer to their needs or tastes), but also the margin it makes on each sale (as customers can be charged prices that are closer to the maximum amount that they are willing to pay).
The massive deployment of information technologies and of the Internet has indeed equipped firms with unprecedented tools to gather and process detailed information about their potential customers.
This is of course no coincidence: Internet advertising is increasingly targeted so as to raise the chances that the right person sees the right ad at the right time.
As for the “competition-enhancing effect”, it corresponds to the idea that if a firm can tell its own loyal consumers apart from those of its competitor, it can set lower prices so as to target aggressively the rival’s customer base. On the other hand, if the first effect does not work, consumers still have the possibility to use advertising-avoidance tools. One is that the number of ads received may increase, which is bad for consumers because, in equilibrium, they tend to disdain marginal ads although they may appreciate inframarginal ones.
For an informal account of the findings of this paper, see this blog entry of Joshua Gans on Digitopoly. Red bull, don’t have a precise ROI of this event but knows precisely how many were watching and that each one wanted to see it. Targeted advertising tracks myself without my consent and this is why I block all advertising when I surf on the Internet (and when it is possible). If a service improves my welfare, decreases my search cost and give me something which is very useful, advertising does not bother me. It is precisely because online marketing is interactive, it allows the business to promote or offer something and then follow it up with proof that what they’re offering is true.
These interactions could be the difference between keeping the consumer engaged and leading to a sale or having a consumer find your online presence lacking and ignore your business. In many occasion we want privacy, but it always have many targeted advertising to customers, in this case, we must want use ad-avoidance to keep away this “evils”.
On the other hand, due to targeted advertising can bring competition of firms, may be firms will decrease their price to attract their rival’s loyal customers, thus, it will enable to customers to enjoy a lower price, even though maybe this price is just temporary.
For example, each online user has its own IP address which allows to know the location of the individual. These indicators depend on the different objectives an online advertising campaign may have.
According to a survey conducted in March 2010 by eMarketer (4) in the USA, this method is used by 60% of advertisers to measure performance of their online marketing campaigns. Moreover, when it delivers personal data, the user must understand the risks and accept the consequences (such as spamming) . Furthermore, as expressed by the Federal Trade Commission, consumers who feel oppressed, have the option via some browsers to block cookies not being spied without their knowledge. That would not benefit anyone, users would be aimed by advertising based on a wrong profile and companies cannot reach their audience. Then there are tools which allow to know what people search in priority but also to know other information about them. On the internet via a CPM campaign, you only pay for the effectively reached (or affected) public.
This can’t be seen as an invasion of privacy but rather as an optimal way to advertise. In this case, the advertisers use the data collected from social media or sites where the consumers browsed to reach them with ads adapted to their behaviours. I prefer to see this mechanism as a “personal browser”, making easier or automatically the research I’m looking for. In contrast, do you consider it as something positive (as it increases the chance that you will be made aware of products that you like), or as a necessary evil (“I have to accept some invasion of my privacy to keep, e.g., Facebook free of charge”)? I think that governments should have more control over these practices to protect the personal data’s. The internet allows the advertisers to reach a huge numbers of potential consumers at the same time whereas the old system implied to use different channels and different distributors to produce the same effect, inducing larger costs.

This effect should not be underestimated because sometimes ads are quite common in order to attract so much people as possible and could present a lack of information for the specialists.
Therefore the firms can conclude sells faster and directly, without real point of sale, that is not negligible. Gradually, depending also on the technological advances, occurred in the case of the internet with an impressive speed, became potential as interactivity, simultaneously the use of sounds and moving images.
And there is something that makes a big difference: the campaign can be launched, updated and cancelled immediately. In other words, is to have people making advertising your product for free, so we can say that Web 2.0 is possible to advertise with almost zero cost of funds. We can be exposed from 500 to 2000 ads’ messages in a single day (1), combining all the methods of advertisement. But with ads on the internet, for my personal experience it is doing the exact opposite effect.
Ads use to slower the page and use internet broadband, which isn’t a problem anymore due to the evolution of the computing power and internet broadband. Offline ads are kinds of traditional advertising methods by using radio, television and even print. So if you really want to improve your ad is effectiveness, you should ensure that you don’t ignore this step. Your job is to make your ads different, attention-getting, and also make people want to know more. It only works on its own when your product is wanted by the masses or when you can’t really use any targeted keywords because the market is too broad. TACO will clear-out all of your existing cookies except the 100 it places in Firefox meaning you'll lose a lot of your stored passwords, filled-in-forms, etc. TACO does give you much greater awareness of which sites are trying to track you however. We also share information about your use of our site with our social media, advertising and analytics partners. As a result, achieving an increasingly finer segmentation of customer bases is made not only widely possible, but also commercially feasible. They used internet as a “buzz tool” for this special sort of advertising and it works in an impressive way. Advertisers track myself by scanning my cookies, tracking my IP, looking about everything I have done on the web, opening popups without my consent, and so on.
We can use the super bowl as an example, where people wait eagerly for the advertising space, either they like football or not, even knowing that they could change the channel to avoid them. Well, offline advertising has less ways of reaching the costumer, but is has a bigger advantage because it can have a physical interaction with the costumers which make it harder to forget and more efficient.
Second, you need to decide what metrics will be used to judge the effectiveness of your advertising, for example: Increase in web traffic, length of visit, page views, clicks or ad views. First we need to understand that because online marketing is more accessible and easier than traditional marketing, the volume of advertisements has increased. The consumer is not stuck with one image or text and gets the chance to explore what the business is offering through the Internet. But for me, only if these targeted advertising do not bring many troubles to me, I will enjoy it. To this purpose, nine categories of indicators are explained and a non-exhaustive lists of indicators for each of them are listed.
Above all, I think that it is the consumer who must have a critical approach with regard to what is offered to him by companies whose legitimate purpose is to do business. It is possible to collect data (regions, age, language, etc.) to determine a consumer profile that would then launch a general campaign offline effective. People can’t be reluctant to that kind of advertising, they benefit from that mechanism because it make easier their research of specific products.
I don’t understand how firm can easily and without our permission collect and use all personal information. Furthermore, “Adblock” stops the “pop up”, ads which open a new window when we arrive on a website or click on a content. It will be seen by all the clubs subscribers who are potential targets but not specifically all the ones that are specifically interested in this running.
In monopoly situation, the author give the “ratchet effect” which as consumers realize that they would be hurt by revealing information so they incur costs to conceal their preferences. Gradually, their own formats for the internet began to be standardized, although now the possibilities assume endless formats like: banners, e-mail marketing and newsletter, skyscrapers, buttons, sponsoring, etc. The number of people accessing the network grows fast and brings into question many traditional media, such as television.
Advertisers have then to keep improve their methods in order to have a significant impact on our purchasing behaviors.
I will have reticence for brands that are intrusive (2) and when I can perceive the manipulation. Online ads are less costly, faster processed, higher reached than offline ads, meanwhile, it can also be tracked if the ads have reached to users and count the times and content.
You will also find out that not only is the response not the same, but neither is the cost of the ad.
Ask questions in your title or use testimonials from other people who have tried out your product.
But is this is incorrect, then you should target the keywords because when your ads match up, they will probably get a higher click through rate which means that you will convert more. You can now see how you are being tracked at every website and privacy alerts show you which trackers are active. When you are watching TV, commercials try to make laugh, to create an image of their mark to the consumers. We can also see this often in other important sports events and in the advertising of big brands like Coca Cola and Pepsi.
So in reality, I don’t use any ad-avoidance, because I think these advertising can help me to find right things in right time and also can reduce my search cost. The biggest ones is the lack of information on the kind of impact following the exposure of an advertising. In my opinion, it belongs to the user to take the initiative if he will not be covered by advertisings. If you are aware of BBPD practices this could change your behavior online, which on its turn will hurt firms. In other words, the internet advertising allows to target specific individuals whereas traditional media target groups of individuals. Increasingly consumers go shopping in virtual stores, causing many companies start to advertise online.
First, as long as my research and data are tracked I perceive the manipulation of the advertiser.
It is crucial that institutions adapt the law in function of this evolution in order to work for the safety of the consumer and the user. At these times, I often receive spam but now that I use a Gmail account, the filtering is excellent and I don’t receive anyone anymore.
For instance, if you sell a weight loss eBook that possesses two versions, one for men and one for women. Search engines such as Google have their own formulas for testing the relevance of ads and providing your website with a quality score.
It also blocks many tracking techniques such and network scripts, widgets and other web bugs. Some features are still in beta testing such as disposable email generation and other protection tools but these are disabled by default. I think there is much more potential in online advertising that just buying keywords on adwords.
Coupled with Facebook and mobile devices and you have the perfect tools to know everything on everyone.
After that, you need to invest in website tracking software that will work with your chosen metrics.
Information technology brings a lot of features to gather information from users of a website. Indeed, it is not possible to know if the exposed user will purchase the product or it does not give any information about the awareness of this exposed user. If firm could offer long-term contracts, customer would prefer to preference a positive changing. Secondly it alters with the real goal that you are looking for when you browse something on the computer, searching for information.
In this instance, you can basically separate them by gender and examine the targeted results. Even though Facebook doesn’t have such a system in place, internally it does follow the same principles. Finally, the developers claim that they do not track users that install TACO and to encourage confidence in the add-on, they've also issued the source code for all to see. TACO has become somewhat bloated over the years but its still an excellent away to stop advertising from tracking and targeting you when using Firefox. I didn’t know the existence of the do-not-track technology and this article is so useful for me to be more “untraceable”. The next thing you need to do is invest in creating landing pages, if you do not already do so.
Meanwhile, in multiple firms’ situation, more competitions will appear and there will be additional effect of firms poaching each other’s customers with special transactions.
So I did use a do-not-track service but I didn’t see it as a tool for my privacy but just for not having spam. By applying this one easy feature, you will be able to touch two differing groups effectively and not have to worry about the response.
Ads campaign seems to be short term oriented and having a precise rate of return please so the managers that I doubt that we will see more creative campaign in the near future in the online ad landscape, unfortunately. The quality of the match between the consumer and the advertisement message is thus improved (2). If I can be sure that I will not receive any unwanted mail from a website, giving my real mail is not a problem at all.

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