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The importance of targeting to save your ads budget

Did you know that using an effective targeting method will save your advertising budget?

We now offer a wide selection of advanced targeting options:

  • geographical location (GEO)
  • category targeting
  • platform
  • operating systems and their versions
  • device types
  • time targeting
  • browser’s language
  • browsers type
  • keywords

Coming soon:

  • connection type
  • mobile carrier and ISPs
  • zone limitation

What about the above targeting list? Can you save on the budget? Follow our description as below:

Description of the diagram above:

1. GEO Location – You will first target XYZ locations with a total audience of 1,000,000.

2. Keywords – Say you want to sell cat food. You also target sites that contain the keyword ‘cat’ in their pages. With this, Keywords has filtered the audience from 1,000,000 to just 50,000.

3. Category – From keywords that have been filtered, you are targeting sites that are involved in the category of pets or groups that have an interest in cats. With this, Category has filtered out the audience from 50,000 to just 10,000 people.

4. Device – You want to target people who only use mobile devices because you know that many young people under the age of 30s keep cats. And young people use mobile devices most often. So with this, Device has filtered the audience from 10,000 to just 7,000 people.

5. Browser & OS – For mobile devices, you find users for both operating systems like iOS (iPhone) and Android are the most populous groups with cats. You choose both operating systems while young people often use the Safari and Chrome browsers. With this, the Browser & OS has filtered the audience from 7,000 to just 5,000 people.

6. Time – You know that only working groups have fixed income and can afford to care for animals like cats. So, you set a time for ads to appear on them between 8.00 am to 5.00 pm (working hours). By this time, Time has filtered the audience from 5,000 to just 3,000 people.

Of the 1,000,000 audience, only 3,000 left?

Let’s look in terms of monetary facts and expenses:

a. 3,000 people (equivalent to 0.3% of the 1,000,000 people) are the perfect audience to advertise your product.

b. If your CPC is worth $0.10 per click, the budget you have spent is only $300.

c. If you do not use the targeting method, then you’ll spend $100,000!

d. Of the $100,000 total, the actual budget for the right audience is only $300, while the remaining $99,700 is the budget for the wrong audience.

e. Imagine if you spend $100,000 on a real audience by using the proper targeting method? The absolute number of actual audiences that you can reach is 1,000,000!

f. Now, from the actual audience (1,000,000), take 20% (200,000 people who are interested in buying) and multiply by profits (for example) $20.00 for each of your products? So the gross profit to be earned is $4,000,000!

g. Is it worth $100,000 that you invested using a targeted method for advertising rather than investing $100,000 without targeting methods and getting only 3,000 audiences (with a $60,000 profit)?

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