Why Personalized Advertising Works for People and Businesses

It's hard to overstate how much the internet has changed our lives over the past generation. While we might often take it for granted, we're now able to connect with friends, navigate around town, catch up on the latest news, and more. And often, we can do all that for free.

The personalized advertising ecosystem is a major reason why.

We'd like to take a moment to explain how that ecosystem works, and the value that it brings to both individuals and businesses.

You can click the pink highlighted text for more info and references.

Part 1

The Personalized Ad Ecosystem

The personalized ad ecosystem, at its simplest, is a way that businesses can connect with people.

Often, a person's first connection to a business is through advertising - be it through social media, through ads posted on websites, or through the services people use.

With personalized advertising, the best outcome is that people and businesses can connect over the things they're both interested in - so that, eventually, those people become new customers.

We've created some fictional narratives, inspired by real case studies, to help explain how the ecosystem works, and explore some of the benefits for people and for businesses.

She's 39. She's a regular user of digital services on her phone – most of which she accesses for free and doesn’t think about paying for.

In that respect, she's definitely not alone.

Advertising makes thousands of digital services possible, and these services are more accessible and more open to everyone because of the advertising they carry.

Of course, Jess does pay a subscription for some of her favorite services. Usually they're things she's tried first for free, with ads, and really liked.

Jess has grown up around advertising. It's always been a part of the free services she uses. What's changed is the experience of those ads: they are more personalized, and closer to her interests.

And for the first time, she's been given control over what she sees.

So why is Jess able to use most of her online services for free?

And what can personalized ads achieve that more 'traditional' forms of advertising can't?

To find out, let's introduce you to two business owners: Jimmy and Sunny.

Part 2

A New Way of Doing Business

Jimmy is a small business owner. He's taken over his family's fruit and veggie business.