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ITM 102 Study Guide - Business Wire, Advertising Age, Pearson Education

Information Technology Management
Course Code
ITM 102
Catherine Middleton

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Name: Aaina Jaiswal
Student Number: 500508476
question: 8
Behavioural targeting is a way of tracking the individuals' habits by knowing and
understanding the clicks by these individuals on thousands of websites. This helps the enterprises
understand their interests and expose them to the advertisements according to it. It can also help
understand the consumer's purchase patterns and the companies can charge them with the prices
which can increase the sales of their products. As a result of its high use by other marketers, it is
sure that this is the best way to increase the sales of the company. The simplest type of
behavioural targeting is retargeting. This method has also been extremely precise and effective.
While this process allows several ads to appear on the server's webpage, it is highly profitable for
these companies because these users get attracted towards these ads and this results as a result in
the projection of revenue for these companies. If the companies increase the effectiveness of
showing the right types of ads to the interested users, there can be high numbers of users
resulting in a high number of sales for the company, " Microsoft says the system should increase
the effectiveness of online advertising by showing ads to interested people. For example, a
person researching stock prices may get an ad for brokerage services." Behavioural targeting
helps companies to better serve customers. "Behavioural targeting represents a technological
solution for what all marketers strive for: better understanding of the customer to ensure a more
positive, extended brand relationship leading to greater sales . Just be sure the message is
relevant and in sync with the total marketing mix," this is just an indication for any company to
keep this is mind before using behavioural targeting that the content that's being delivered is
relevant which can help achieve greater response from the consumers. While this way of selling
their services can provide ample of advantages, it has got some of the disadvantages of course
because it violent the privacy of such consumers who are willing to pay for whatever price the
company are presenting their products with. If a company want to never lose this practice of
earning profit, they should have the courage to tell their customers of how they were targeted
which is how they have come across to their product or service. This may be a risk of losing the
customers a company might already have but it may also be an assurance of some customers to
buy just their products and be their permanent customers due to their honestly. Regardless of a
profit or a lose, a company must know that they are providing ads that are relevant their interest
but now they should also make sure whether the consumers they are targeting at are aware of
how this data is being used. Some companies might be discouraged but this is where one needs
to take risks and understand why it is important to be fair on their part in order to make better
profits for themselves.
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