Tailored Advertising

Definition of 'Tailored Advertising'


Marketing and advertising campaigns that place emphasis on the needs and wants of a small sets of people or on an individual consumer, as opposed to targeting a mass audience. Tailored advertising may involve providing a coupon for a specific type of good or service based on the past purchases, using demographic information to present an advertising message to a particular market segment, or running a campaign designed for a specific city or metro area. Because it is more specialized, tailored advertising tends to be more expensive to develop than mass-market advertising.

Investopedia explains 'Tailored Advertising'


Tailored advertising has become a more common technique with the advent of the internet, since companies are able to track individual consumer behavior more readily. For example, a consumer buys milk at a grocery store where he is a member of that store's loyalty program. The loyalty program collects information on that consumer's shopping habits and is able to compare what this consumer purchases with what others purchase. The information it aggregates suggests that most consumers buying milk also buy bread. At the checkout, the store may print out a coupon for 10% off the price of bread.



comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
Trading Center