The ability for social media sites such as Facebook and Instagram to use big data and cookies to track your recent searches and purchases and then sell the ability to brands to use that to retarget certain ads to you. Facebook launched a large travel dynamic ad campaign where they could track if you had bought a hotel or flight or searched for one recently an then lead you to other things you would want to purchase along with that trip within a matter of seconds. This changes advertising because ads become custom to exactly what the customer needs and desires at that moment. Social media marketing allows brands to get the right ads to the right people (target market) with incredible efficiency.
Example of brands who have taken advantage of personalized advertising; it is proven that brands who use data driven campaigns to tailor content to their interests are seeing the results (19% increase in sales)
- Amazon: Amazon’s complex customer profile algorithm has allowed them a large advantage in personalized advertising. By tracking customer’s past purchases, Amazon has been able to create a platform which prompts impulse buying and creating new product desires.
- Cadbury’s Chocolate: Cadbury’s Chocolate launched an advertisement campaign in Australia which matched personal chocolate flavors to people based on their Facebook profiles. The personalization of customer’s chocolate experience was a success and lead to a 33.6% conversation rate.
- Netflix: Netflix is another example of a company who has hide wide success with the personalization of content advertising. By using an algorithm which guesses hat people most prefer to watch customers are constantly receiving a personal experience on the site which has consistently allowed the company’s profits to steadily grow at a rate of 30% per year.
Simply Social 