Targeted advertising methods are essential tools for marketers who aim to tailor their marketing communication to specific target groups. The impact of such targeting methods on consumer buying behavior, however, is contentious, as data privacy concerns on behalf of the consumers threaten to impair the effectiveness of targeted advertisements. Against this background, this thesis investigates how targeted advertising methods affect online buying behavior in the B2C segment. In this context, the thesis particularly examines technical targeting methods, as the comprehensive review of literature and prior research revealed a research gap in this field.
To answer the research question and test the associated hypotheses, the thesis resorted to an online survey, encompassing two questionnaires distributed to German- and English-speaking sample groups. The quantitative data obtained through this online survey was subsequently analyzed using statistical methods such as descriptive statistics, group statistics, correlations, and T-Tests. Eventually, the findings gained from this procedure enabled the derivation of theoretical contributions to the field of strategic marketing and practical recommendations for B2C companies.
Targeted advertising has evolved into a significant part of the global advertising ecosystem, making it feasible to target consumers based on an analysis of data gathered online. The appeal of targeted advertising is anchored in the ability to provide consumers with a tailor-made advertising experience.
According to German economist Bernd W. Wirtz, targeted advertising methods are essential elements in the targeting process, as these methods enhance the effectiveness and efficiency by which target consumers can be addressed. Consequently, Wirtz identifies the selection of appropriate targeting methods to be critical to the communication success of companies. A study conducted by IHS Markit validates the claim of Wirtz that targeted advertising methods have a positive impact on advertising effectiveness, indicating that specific targeting methods achieve click-through rates [CTR] that are up to 5.3 times higher than the CTR of non-targeted advertising formats. In light of the elevated propensity of consumers to click on a targeted advertisement, Michael Bailey and Ayman Farahat argue that targeting reduces the cost-per-click [CPC] of an advertising campaign.
Table of Contents
1. Introduction
1.1 Introduction to targeted advertising methods
1.2 Objectives of the thesis
1.3 Structure of the thesis
2. Theoretical framework
2.1 Definition of relevant terms
2.1.1 Targeted advertising
2.1.2 Consumer buying behavior
2.1.3 Business-to-consumer
2.2 Targeted advertising methods
2.2.1 Technical targeting
2.2.2 Sociodemographic targeting
2.2.3 Behavior-based targeting
2.2.4 Language-based targeting
2.2.5 Enterprise-based targeting
2.2.6 Integrated targeting
2.3 Influencing factors on consumer buying behavior
2.3.1 Cultural factors
2.3.2 Social factors
2.3.3 Personal factors
2.3.4 Psychological factors
2.4 Current state of research
2.4.1 Targeted advertising effectiveness
2.4.2 Privacy concerns
2.4.3 Impact on consumer buying behavior
2.4.4 Subsequent research
3. Empirical research
3.1 Research on technical targeting methods
3.1.1 Research objectives
3.1.2 Introduction of hypotheses
3.2 Methodology
3.2.1 Research design
3.2.2 Research implementation
3.2.3 Data analysis
3.3 Research findings
3.3.1 Sample composition
3.3.2 Findings on technical targeting methods
3.3.3 Findings on technical targeting methods and demography
4. Discussion
4.1 Complementary findings
4.1.1 Complementary findings on technical targeting methods
4.1.2 Complementary findings on technical targeting methods and demography
4.2 Interpretation of research findings
4.2.1 Research findings and contemporary literature
4.2.2 Recommendations for practical implementation
5. Conclusion
5.1 Conclusive remarks
5.2 Outlook and future research
Research Objectives and Topics
This thesis aims to illustrate how targeted advertising methods influence the online purchasing behavior of consumers in the B2C segment, while specifically analyzing the impact of technical targeting methods and the potential influence of different demographic parameters on consumer perception and behavior.
- The functionality and application of various targeted advertising methods.
- The influence of demographic factors on consumer perception of targeted advertising.
- The relationship between targeted advertising and online purchase decisions.
- Empirical data collection through online surveys concerning consumer behavior.
- Deriving practical recommendations for businesses based on research findings.
Excerpt from the Book
1.1 Introduction to targeted advertising methods
Targeted advertising has evolved into a significant part of the global advertising ecosystem, making it feasible to target consumers based on an analysis of data gathered online. The appeal of targeted advertising is anchored in the ability to provide consumers with a tailor-made advertising experience (Froehlich, 2022).
According to German economist Bernd W. Wirtz, targeted advertising methods are essential elements in the targeting process, as these methods enhance the effectiveness and efficiency by which target consumers can be addressed. Consequently, Wirtz identifies the selection of appropriate targeting methods to be critical to the communication success of companies (Wirtz, 2022). A study conducted by IHS Markit validates the claim of Wirtz that targeted advertising methods have a positive impact on advertising effectiveness, indicating that specific targeting methods achieve click-through rates [CTR] that are up to 5.3 times higher than the CTR of non-targeted advertising formats (IHS Markit, 2017). In light of the elevated propensity of consumers to click on a targeted advertisement, Michael Bailey and Ayman Farahat argue that targeting reduces the cost-per-click [CPC] of an advertising campaign. On that note, the researchers found that certain methods decrease CPC by 77.8% compared with non-targeted equivalents (Bailey & Farahat, 2012).
Hence, as targeted advertising methods enable marketers to generate more traffic, concurrently curtailing the CPC of advertising campaigns, targeting has developed into one of the preeminent advertising strategies of the digital age (Singh, 2022).
Summary of Chapters
1. Introduction: This chapter introduces the global shift toward targeted advertising as a key component of the communication ecosystem and outlines the central research objectives.
2. Theoretical framework: This chapter defines key terminology and reviews the current state of research regarding targeted advertising methods and influencing factors on consumer buying behavior.
3. Empirical research: This section details the methodology, research design, and data analysis used to test how technical targeting methods impact online purchasing behavior.
4. Discussion: The discussion interprets empirical results, relates them to existing literature, and provides actionable recommendations for businesses.
5. Conclusion: This final section summarizes the main findings, provides concluding remarks, and identifies possibilities for future academic research.
Keywords
Targeted advertising, B2C segment, consumer buying behavior, technical targeting, geotargeting, time targeting, digital marketing, data privacy, online purchasing, demographic parameters, empirical research, advertising effectiveness, marketing strategy, customer experience, personalization.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates the impact of various targeted advertising methods, specifically technical targeting, on the online buying behavior of consumers within the B2C segment.
What are the primary targeted advertising methods analyzed?
The study examines technical, sociodemographic, behavior-based, language-based, enterprise-based, and integrated targeting methods.
What is the primary research question?
The research question asks how technical targeting methods impact the online buying behavior of B2C consumers.
Which research methodology does the author apply?
The author uses a quantitative approach, conducting a field study via an online survey with 134 completed responses for statistical analysis.
What does the main body cover?
The main part of the thesis discusses theoretical foundations, current research states, and the empirical testing of specific hypotheses regarding targeting and demographics.
Which keywords best characterize this work?
Key terms include targeted advertising, consumer buying behavior, B2C segment, data privacy, technical targeting, and online purchasing.
What specifically is the role of time targeting?
The study concludes that time targeting is the most effective technical targeting method, showing a significant positive impact on online purchase frequency.
Are privacy concerns a significant issue?
Yes, the data reveals that consumers are often significantly concerned about data usage, which can sometimes override the perceived benefits of targeted advertising as a "shopping aid."
- Citation du texte
- Niklas Jakob (Auteur), 2023, Analysis of the Impact of Targeted Advertising Methods on Consumer Buying Behavior in the B2C Segment, Munich, GRIN Verlag, https://www.grin.com/document/1452299
