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Are you overpaying to reach a smaller audience? This week, we're breaking down what marketers get wrong about targeting and how to make smarter audience decisions that drive growth without breaking the bank.
—Elena
Third-party targeting suffers from high costs and inaccuracies.
Reaching your audience through data-driven targeting sounds great in theory. But many third-party data segments deliver ads to people with limited relevance at premium prices, damaging performance.
Find balance in targeting strategies.
The debate around targeting is complex, with implications for both strategy and media execution.
- Strategic targeting shapes everything. Understanding your core customer helps inform everything from product development to messaging. As Mark Ritson notes, targeting is the foundation of strategy, not just a media decision.
- Don't fall for over-narrowing your audience. While defining your target is important, research shows most brands grow by reaching light or occasional buyers. The obsession with hyper-specific personas can limit growth.
- Ask the tough questions about data costs. Third-party targeting often comes with accuracy issues and premium costs. The key question marketers should ask is not just can we target them, but is it worth it?
- Beware algorithmic testing biases. Digital platforms optimize for short-term metrics using proprietary algorithms that can skew results. Researchers call this "divergent delivery,” or showing different ads to different audiences rather than testing true creative effectiveness.
- Get smart about efficient alternatives. Geographic targeting ensures media dollars focus where your product is available. Contextual targeting can improve relevance without relying on questionable personal data. And there are so many more options.
“Ignore Anyone Who Tells You to Forget About Targeting”
This article by Mark Ritson explains why strategic targeting should influence every part of your marketing mix, while warning against the dangers of handing all control to mysterious algorithms.
Know your audience, then reach all of them.
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself."
— Peter Drucker