The effect of targeted advertising If you are planning to launch a new product, targeted advertising will cause a positive effect on your profit in two ways. The most important thing is that you will be able to increase your earnings more rapidly. Because every new product has its own specific buyers and determining this audience will boost your sales volume in a short term. In other words, the supply will find the demand more quickly. For example, a new brand of smartwatches will draw young people’s attention more quickly than elders. So, it is a good idea to advertise these types of products to younger people. Another example may be about toys. Advertising of these products will be more impressive when these ads appear to married people. Because this audience is more suitable for purchasing toy products due to the probability of having children. At the same time, targeted advertising will cause a decrease in your expenses. Assume that, the company wants to launch a new product related to the car. With the help of targeted advertising, the company will determine drivers as the suitable audience consequently. Therefore, it can be concluded that the ads should be produced on the radio. Because of the fact that the advertising on the radio is cheaper than the advertising on the TV, the company will save its expenses. In the summary, you can kill two birds with one stone by using a targeted advertising policy in which we can involve quite a large number of relevant customers and avoid additional costs in order to make more profit.