What is meant by "consumer insights" in advertising?

"Consumer insights" in advertising refers specifically to the understanding of consumer preferences and behaviors that are derived from research data. This concept is vital for advertisers as it allows them to tailor their messages, products, and strategies to better align with the desires and expectations of their target audience. By analyzing factors such as buying habits, motivations, and cultural influences, advertisers can create more effective campaigns that resonate with consumers, ultimately leading to increased engagement and conversion rates.

In contrast to other options, data on advertising costs pertains to financial metrics rather than consumer understanding, feedback from ad design teams focuses on the internal creative process rather than outside consumer behavior, and analysis of market competition examines rival businesses rather than the consumers themselves. Thus, option B encapsulates the essence of how consumer insights guide marketing strategies and decisions.