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Demographic or interest-based ad targeting?

For advertising enthusiasts and veterans alike, Facebook interest targeting is essential for audience building, diversification, and specification. You can also use demographic targeting in Facebook ads if you want to reach a specific audience. So which one to choose? The social network released a new report examining 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 to 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 Triggering a sale or enticing users to join a Facebook group To support an individual or online organization versus more generalized advertising.

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

Demographic or interest-based targeting strategies?

Along the same lines, Meta released a new report examining the performance impacts of broad demographic targeting for CPG advertising campaigns compared to interest-based targeting strategies. These are more focused on specific aspects of the audience, but are also inherently more restrictive.

“The analysis found that in nearly half of the campaigns, the selected audience of interest was very narrow and, as a result, the reach was significantly narrower than the demographic audience. In this case (when the selected audience of interest was very narrow), interest for the same budget The demographic audience almost doubled the reach (+99%) compared to the audience of the U.S..”

So demographic targeting, not affected by Apple’s app tracking transparency or ATT, is therefore preferable. Results show 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 spend more globally then obviously more.

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 exactly you use interest targeting. For people with very sophisticated interest targeting processes, they can generate significantly better campaign results with a more specific focus.

Either way, 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 to develop their strategy:

  • The target audience should not be too narrow;
  • Focus and demographic targeting strategies can provide measurable scope;
  • The optimal targeting strategy depends on the objective of your campaign.

To conclude, offer 3 tips for marketers:

  • Evaluate the trade-off between reach and cost between targeting strategies.
  • Choose a demographic or focus strategy if they offer comparable reach.
  • Adjust the targeting strategy according to the objective of your campaign.

Source: Facebook

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