What Is Smart Targeting and What Are The Benefits?

By Indeed Editorial Team

Published May 14, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Intelligent targeting focuses on the use of computerized systems and artificial intelligence to target consumers. This requires an analysis of the company's target audience and how they can improve their experiences. By knowing more about intelligent targeting, you can increase sales and customer retention. In this article, we discuss the definition of intelligent targeting, review how it works, consider the benefits of intelligent targeting, and identify intelligent marketing strategies.

What is smart targeting?

Smart targeting, otherwise called intelligent targeting, refers to a tool that includes artificial intelligence (AI) to organize and predict information about online users. Intelligent targeting also uses data obtained from artificial intelligence to create personalized experiences. Another example of intelligence targeting occurs when professionals provide websites with their name during account registration. Marketing professionals also provide pop-ups that ask whether customers want to transfer the website's content into preferred browser languages. These professionals also use intelligent targeting to obtain the attention of online users and provide relevant advertising.

Marketers also consider intelligent targeting when identifying customer profiles. They analyze and collect lists of common traits with multiple users and compile them into one profile. Intelligent targeting software uses these profiles to obtain potential customers and to target or identify new customers.

How does intelligent targeting work?

Intelligent targeting is a process that starts with the collection of company information and analytics, of which they store and promote confidentiality. This uses machine learning, along with predictive algorithms, to categorize their users and predict both their habits and interests. Intelligent targeting allows professionals to provide users in different categories with personalized messaging. These systems also allow professionals to oversee the success rates of their different messaging techniques. Professionals use customer relationship management (CRM) tools that include artificial intelligence to help with the management of customer information.

These tools typically include intelligent targeting abilities, and they can include systems for historical data and sensitive inputs. This helps professionals maintain the privacy of users. Here are some of the criteria associated with intelligent targeting:

  • Location: The user location can be helpful in determining which brands they are likely to have heard of and which cultural norms they are likely to take part in, which may influence their personalized messaging. The country that users are in may also influence the peak times for conversions.

  • Device type: Knowing the type of device that your viewers are looking at your content with lets you design your messaging graphics based on what looks the best.

  • Referral source: Knowing how your viewers got to your site may lead to useful information about their interests and browsing habits.

  • Time of day: Tracking the timing of user visits may help you create a messaging campaign that is most active when your users are.

  • Browser language: This information may help you present your messaging in the same language as the user's home browser, regardless of the original language of the message.

  • Browser history: By tracking user browser history across search engines and social media, you may identify patterns and behaviours that are in line with your ideal customer profile. You may also use this information to create relevant messaging for an individual who fits some of your ideal customer profile criteria.

  • Site visits: Tracking the number of times a user comes to your site, when they visit and which pages they spend the most time looking at, may all help you develop a better understanding of your potential clients and create effective targeted messaging for them.

  • Age or life stage: The messaging designed for a student, for instance, may differ from the messaging designed for a working professional or a new parent. In this way, the age and life stage of your viewers can be an important aspect of their marketing profiles.

  • Purchase history: Intelligent targeting may analyze user purchase history to identify trends and interests, both recent and long-term. This information can then create offers or messages relevant to those interests.

Benefits of smart targeting

Here's a list of benefits associated with intelligent targeting:

Lead conversion

Lead conversion is the process of turning potential customers into paying customers. Online advertising is a useful way to convert leads, and users are more likely to follow through with an advertisement if it applies to their interests. Intelligent targeting works to align marketing, sales and management to create an efficient lead conversion technique. This makes it a very useful lead conversion tool that can help improve engagement and generate more sales.

Customer relations

The personalization of the users' experience as a result of smart targeting may help them feel recognized and appreciated. It can also help them avoid irrelevant advertisements that they may have interpreted as spam, in favour of advertisements and offers that carry real value for them. This improved customer relations experience may help boost conversion rates and encourage customer loyalty to your brand.

Saving money

By replacing generalized advertisements with targeted ones, you help to create advertisements that are as effective as possible. This may help you save money by creating a higher return on investment (ROI). Instead of spending on ad spots that may not result in any conversions, you can streamline your process and focus on those that have a better chance of performing well. This saves both the cost of the advertisements themselves and valuable time for yourself or your employees that you can now spend elsewhere.

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Versatility

Marketing professionals can implement smart targeting across many different internet platforms, including social media, websites, and search engines. Smart targeting is also used across a wide variety of industries, from automotive advertising to real estate marketing. This versatility helps to make targeting a powerful and highly recognized marketing tool.

What are intelligent marketing strategies?

Here's a list of intelligent marketing strategies:

Undifferentiated marketing

Undifferentiated marketing, otherwise called mass marketing, doesn't consider the differences between components of markets. Instead, this form of marketing considers whole markets as one audience. With this form of marketing, every member in a market is a potential consumer. This strategy attempts to attract and connect with as many consumers as possible, and a primary advantage of using undifferentiated marketing is that professionals can connect with many consumers at a lower cost. Mass marketing occurs when companies have products and services that they believe appeal to large markets and a large number of consumers.

For example, companies can use mass marketing when selling essential products, like toothpaste and toilet paper. This form of marketing has significantly less risk than targeting that focuses on segments of markets.

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Differentiated marketing

Differentiated marketing, otherwise called segmented marketing, differs from undifferentiated marketing because it isolates a specific number of target segments that have the potential of providing companies with more value. When companies identify their potential target audience, they typically create marketing strategies for each audience. This allows brands to target individual populations, which helps them develop a relationship between consumers and the company. Differentiated marketing also considers the different needs of consumers and aims to provide them with solutions through marketing campaigns.

For example, a sportswear brand can describe how the company's products can provide consumers with more value compared to competitors by developing footwear that suits the different help needs of their audience. Differentiated targeting aims to prevent over-exposure to consumers.

Related: A Guide to Marketing As a Career

Concentrated marketing

Concentrated marketing, otherwise called niche marketing, considers a single, specific target audience for whom they develop marketing strategies. With concentrated marketing, companies focus on specific consumer groups and aim to increase their presence in their market. This helps them optimize their growth potential and improve their relationships with consumers. For example, some companies can release branding campaigns that discuss their ethical material sourcing. This can include messaging about condemning animal testing on websites. Using concentrated marketing allows companies to focus on innovation and the optimization of brand loyalty, along with the reduction of operational and marketing costs.

Micromarketing

Micromarketing focuses on individual groups of consumers within a niche market, and it uses targeted marketing to address the specific characteristics and needs of those consumers. For example, websites that provide consumers with coupons can provide additional discounts to consumers within a specific location. This form of targeting consumers focus on personalizing offers to consumers and requires the tracking of consumer activity.

A company that aims to provide location-based services requires a general understanding of the location of consumers. Alternatively, companies can obtain a general understanding of their consumers' perspectives, along with their values and goals. This helps them identify opportunities for additional marketing campaigns.

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