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Google Will Provide Targeted Ads through Users’ Email Addresses

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Apr. 20 2015, Published 8:32 a.m. ET

Google reportedly talking to advertisers to provide customer information

Internet companies are finding newer ways to provide users with relevant and targeted ads. Targeted ads not only help advertisers with better conversion rates, but they also help Internet companies with better ad monetization. According to an April 14 report from the Wall Street Journal citing people familiar with the matter, Google (GOOG) (GOOGL) is in talks with advertisers to provide customer information—like email addresses. Google would identify these users and show relevant ads based on their purchase history.

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This kind of ad product from Google will be similar to what Facebook (FB) already provides to its users—the “Custom Audiences” program. This program enables marketers or advertisers to use basic user data, like email addresses, to segment current and prospective customers on Facebook and target them with ads. For example, an online retailer like Amazon.com (AMZN) would take its users’ email addresses, identify them on Facebook, and then target them with relevant ads.

Facebook is one of the sought-after platforms

These innovative ad products made Facebook one of the most sought-after platforms for e-commerce companies. According to a report from AddShoppers, and as the above chart shows, Facebook Share and Facebook Like command respective e-commerce ad conversion rates of 3.09% and 1.32%. Email continues to lead this list, while Google+ is slightly ahead of Facebook. Twitter (TWTR) and Pinterest lag behind Facebook in this segment.

To gain diversified exposure to Google, you could invest in the iShares Dow Jones US Technology (IYW). IYW invests about 4.3% of its holdings in Google.

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