Shopware Agency
Shopify Agency
JTL SHOP 5 Agency
Gambio Agency
Magento Agency
WooCommerce Agency
PrestaShop Agency
Xentral Service Partner Enterprice
VARIO Service Partner
Odoo Agency
Amazon Agency
eBay SEO
Otto SEO
Google SEO
Google Ads
Social Media
Facebook Ads Agency
Instagram Ads Agency
ChatGPT Agency
Link Building Agency
Ecommerce Tutorials
eCommerce Podcast
SEO Tools
AI Tools
eCommerce Facebook Group
Meta Targeting Study
Broad vs. narrow targeting
The meta-targeting study examined, among other things, whether and when it makes more sense for companies to rely on broad targeting and when narrow targeting is more appropriate. We present the results of the study in this meta tutorial.
For those who are just starting out: What does targeting matter?
In this article we will show you, among other things, the results of the latest Metas targeting study. Plus, business newbies get a little course in what makes good targeting in the first place. The purpose of effective targeting is to minimize wastage and make marketing effectiveness more visible and tangible. In the successful distribution of a product, all contingencies must be weighed and considered. Whoever has the best idea about their customer has pretty much won the game: The entire lure of social media is and remains the easy availability of potential customers’ data, no wonder why Meta went to extra lengths with the new study. User data is still the bread and butter of Mark Zuckerberg and the Meta team.
Meta Targeting Study - The Right Marketing Steps
The most important step after weighing the target audience, is to precisely adjust the marketing steps and deepen the understanding of customer needs. The business world is passionately debating what the right market segmentation looks like and whether demographic targeting is good enough. The opposite side swears by interest-based targeting and believes that classification by age, education level or status is less effective. We at eBakery hope that this article can shed some light and help you choose your strategy.
How does demographic targeting work?
When it comes to the basics of demographic targeting, it first comes down to the most basic characteristics of people. How old are they? Where do they live? What are their beliefs and what is their income? The analysis of these characteristics already excludes many from the target group, creating a solid foundation for further action. You’ve narrowed down your target fairly well, but the exact details aren’t on the table yet.
The W questions
In order to get an even more accurate picture of the situation, the “W questions” must now be clarified and elaborated. For all business newcomers we repeat them here once again 1. why does the customer buy? 2. when does the customer buy? 3.how often does the customer buy? 4. which sales channels does the customer use? 5. how much is the customer willing to spend? Once these factors are clarified, you already have a very good picture of your target group. But the last and most important step is still missing.
Meta Targeting Study - Focus on the Individual
At this point, we get down to the nitty-gritty, crystallizing the personal lifestyle, values, and interests of the individual. In this step, many companies resort to the creation of a Buyer Personality: The Buyer Personality is a fictitious image of the ideal customer, which should be as close to reality as possible. The main reason for the success of Meta’s platforms is that the user voluntarily provides this information and makes it available to all interested companies. The new meta-targeting study, is designed to help make the most of its opportunities.
Metal Targeting Study - How does good market research work ?
Good market research does not have to be elaborate: The simplest method is still the classic Google search. As another important tool, Google Analytics is recommended, the general data is available openly and clearly. Those who have enough time can supplement the online research with personal interviews with people: This measure should perhaps not be the main focus, but can give you valuable info that can lift you above the competition. Not everything is visible online and personal contact with people can be a strategic advantage without equal.
Target Group Identification "Made in Germany": The Sinus Institute
As early as the late 1970s, the Heidelberg Sinus Institute fulfilled the boldest dreams of entrepreneurs by presenting a graph that divided the population into different categories. This chart is updated annually and is subject to the strictest rules of market research. Going into the exact differences between the Sinus Milieus would go beyond the scope of this article, so we refer you to the link here.
Meta Targeting Study - What will change at Meta in 2022?
After the bad press that hit Meta in 2021, Facebook is now ending discriminatory marketing. After deleting over 5000 categories already in 2018, the options that filter by sexual orientation, religious affiliation, political views and ethnicity are to give way in January. This concession was not honored by Meta’s critics: Evidence was discovered that Facebook was continuing to use “discriminatory” filters behind the scenes and that the public was being misled. So, to further remove itself from the line of fire, Meta has decided to take this radical step.
Ideal targeting
In a new study on targeting effects, Meta shows when broad targeting is worthwhile and when the target group should be narrowed down. Especially in view of the ATT introduced by Apple, this study could be very helpful for advertisers. Meta examined the impact for a general audience definition and that for a narrower audience definition on ad success. This involved comparing demographic targeting with interest targeting for CPG advertising campaigns. For this purpose, 50 CPG campaigns from the Europe-Arabia-Africa economic region were studied. The extensive campaign data comes from the Facebook Brand Lift tool.
Demographics vs. personalization
The biggest finding from Meta’s analysis is that companies that define their audiences too narrowly tend to experience lower advertising effectiveness for their ads. In comparison, the demographic target groups got almost twice the reach compared to the interest groups for the same budget. This is not surprising, of course, because demographic targets are usually aimed at a larger but less precise audience. However, according to Meta, targeting too precisely can hurt ad performance.
Meta Targeting Study - Brand Awareness and Success
The next interesting point of the study is that demographic targeting has a greater effect on brand awareness and is therefore more effective for it. According to Meta, brand awareness is increased 1.6 percent times more through a broader audience than interest-based targeting. However, interest-based targeting also has a decisive advantage. Compared to demographic targeting, it is said to be twice as effective in terms of intent, recommendation, action and preference targeting.
The conclusion
Let us come to the conclusion of the study. Meta itself said that both targeting by demographics and targeting by interests performed well. However, when an interest-based strategy is very narrowly targeted, such that outreach is significantly limited, demographic-based targeting is more cost-effective. According to Meta, narrow targeting is only useful if advertisers know their target group very well. Otherwise, they advise broader targeting option. If you still lack the right social media strategy, we at eBakery are happy to help you as a social media agency. Please feel free to make an appointment directly.
Do you have questions or need an individual offer? Do not hesitate to contact us.
Haben Sie Fragen oder brauchen ein individuelles Angebot? Zögern Sie nicht, uns zu kontaktieren.
