1. What is targeted advertising? a. How is it revolutionizing the advertising industry? b. How is this
affecting newspapers and TV? c. Is targeted advertising desirable for all firms?
Targeted advertising refers to the behavior, through in-depth observation site visitors using web
features, accurately grasp the characteristics of the visitors, and according to the visitor’s behavior
characteristics reflect the demand of the visitors, according to the visitor’s needs and preferences, the
advertising for people with these behavioral characteristics. This is a different type of advertising. In the
case of Google, Page and Brin provided a stage for ads most likely to be read. They used the short
advertising messages that link the search for a particular topic to a Web page for a product or service of
most interest to those searching. When the customers hit or click once on its website, the advertiser of the
short message will pays a small amount to Google. In short, targeted advertising is an special advertising
method specialized for a unique community or people.
a. Before the targeted advertising appeared, advertising industry only has some traditional types of
advertising, such as TV, newspaper and some regular advertisements online. Targeted advertising changed
that situation, it provide useful information to the customers and advertisers. Customers can get information
that they need. Advertisers can get feedback when the customers click the advertising. All of these are the
revolution, which the traditional advertising can not offer.
b. As one of the new type of advertising in the advertising industry, targeted advertising brought the
new opportunity to the advertising industry. At the same time, targeted advertising is the threat of
traditional types of advertising, such as newspaper and TV. With the development of technology, targeted
advertising is the inevitable trend of the future Internet advertising industry development. It has many
advantages that the traditional types of advertising could not provide. Compare with newspapers and TV,
targeted advertising can offer valuable feedback to advertisers and influence the selling and pricing of ads.
In addition, it avoided the waster of useless information. Therefore, targeted advertising will replaced most
part of TV and newspaper.
c. Targeted advertising is desirable for all firms. Companies can get information, which show the
reference of their customers or potential customers. It is helpful when they want to develop exist products
or innovate new products. They can accurately find their targeted customers through targeted advertising.
2. What are the various directions for innovation to take? Can a mature firm in a stagnant industry pursue
Innovation? How successful is this likely to be?
According to the case of Google Company, innovation is the key that helps this company be
successful in the market. At the beginning, Page and Brin found that search would lead to meaningless data.
It is low efficiency when people want to get information online. So they began to work on downloading and
analyzing web links. Then, in order to collect money, they found the potential of advertising; they created
the targeted advertising which is a revolution in the advertising industry. It not only help them find a way to
earn money but also help advertisers produce the product or service based on customer behavior analysis of
accurate delivery to really interested in its valuable customers. At the same time, advertisers could reduce
the waste money for the ads.
A mature firm could pursue innovation in a stagnant. According to the case of Google Company, they
have not stop innovation in the market, even though they occupied the most part of the market. For
