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Demographic or interest-based ad targeting?

For advertising enthusiasts and veterans alike, interest targeting on Facebook is essential to audience creation, diversification, and specification. You can also use demographic targeting for Facebook ads if you want to reach a specific audience. So which one to choose? The social network has released a new report that examines the performance impacts of broad demographic targeting for CPG advertising campaigns compared to interest-based targeting strategies.

targeted advertising on facebook

Targeted advertising has long been at the heart of the company’s massive digital advertising business. But over the years Facebook has been criticized for allowing very specific ad targeting that could, for example, allow advertisers to direct racist ads at users based on their activity on its platform.

In its first major move since rebranding as Meta, the company plans to remove options for targeting people based on multiple sensitive categories. Meta, the company formerly known as Facebook, announced in early November that it wanted to remove thousands of “broad targeting” keywords to target ads to specific users such as:

  • political affiliation;
  • race or ethnicity;
  • health that may refer to diabetes or lung cancer awareness
  • religion which may refer to practices and groups such as the Catholic Church or Jewish holidays;
  • Sexual orientation that can refer to same-sex marriage and LGBT culture.

This change will come into effect from January 19, 2022.

Such personalized ads often lead to better opportunities Initiating sales or encouraging users to join Facebook groups Individuals or support of an online organization than more generalized advertisements.

Allows businesses to do detailed targeting on Facebook“Refine” the audience of users to whom Facebook serves its ads based on demographics, interests, and behaviors.

Demographic or interest targeting strategies?

Along those same lines, Meta has released a new report that examines the performance impacts of interest-based targeting strategies versus broad demographic targeting for CPG advertising campaigns. These are more targeted towards specific aspects of the audience, but are also inherently more restrictive.

“The analysis showed that in almost half of the campaigns, the audience of selected interest was very small and therefore the reach relative to the audience demographic was significantly reduced. In this case (when the selected audience of interest was very narrow), similar The demographic audience almost doubled the reach (+99%) compared to the audience of interest for the budget. »

So demographic targeting, unaffected by Apple’s app tracking transparency or ATT, is therefore preferable. Findings suggest that you reach fewer people when you use interest-based targeting as opposed to broader reach through demographics, but the benefits of decreased brand awareness outweigh the response. If they cost more overall is stronger.

So focusing on a more specific audience can lead to better results. However, a lot of this depends on how well you know your audience and how well you actually use interest-based targeting. For people with very detailed interest targeting processes, they can generate significantly better campaign results through a more specific focus.

In all cases, the analysis showed that there was no single approach that worked best. The optimal strategy will depend on the goals of a specific campaign. However, marketers must consider three key factors in developing their strategy:

  • The target audience should not be too narrow;
  • Interest-based and demographic targeting strategies can provide scalable reach;
  • The optimal targeting strategy depends on the objective of his campaign.

Lastly, offer 3 tips for marketers:

  • Evaluate reach and cost trade-offs between targeting strategies.
  • Choose a demographic or interest strategy if they offer comparable reach.
  • Adjust targeting strategy based on your campaign objective.

Source: Facebook

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