Investment Management Certificate (IMC) Practice Exam

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Which type of ad targeting uses geographical data to tailor advertisements?

  1. Demographic targeting

  2. Geographic targeting

  3. Lifestyle targeting

  4. Behavioral targeting

The correct answer is: Geographic targeting

Geographic targeting is specifically designed to use geographical data to tailor advertisements based on the location of the audience. This type of targeting allows advertisers to reach consumers in specific regions, cities, or even neighborhoods. By analyzing location-based data, businesses can ensure their ads are relevant to the audience’s local environment, preferences, and needs. For instance, a restaurant would benefit from geographic targeting by promoting its offerings to consumers within a certain radius of its location. This not only increases the effectiveness of the advertising spend but also enhances the relevance of the message to the target audience. The other options involve different methods of targeting: demographic targeting focuses on characteristics like age, gender, or income level, lifestyle targeting considers the interests and activities of consumers, and behavioral targeting analyzes user behavior online to tailor ads accordingly. Each of these approaches serves distinct purposes, but geographic targeting uniquely centers on the consumer's physical location.