I think Targeted Advertising is put advertis to the people who may interest to your products or service.Usually, we set some links which are related to your products.When someone chilk one, it means that he or she is your potential customer.So you can give a special-design advertis to get them.
Links from other sites are useful for Internet Marketing.Maybe someone say they not in seo area because Google don`t price any more.but they can bring gusets to your website if you can use them right.