Description: We consider the advertising strategy which allows totarget advertising to different market groups in competitive markets. Advertising less to consumers who use the products of different companies, is a strategic method of creating additional market differentiation. It is shown that targeting makes advertising more effective by eliminating the distribution of advertising to consumers who will not buy a service. The model examines how an advertising company strategy affects the firm's ability to target prices. It is shown that targeting of advertising is more valuable for firms in a competitive environment than the ability to targeting prices.
Keywords: advertising costs, equilibrium income, targeting advertising, targeting, pricing, distribution function