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The Benefits of Personalised Ads & Why you Shouldn’t Opt-Out

The Benefits of Personalised Ads & Why you Shouldn’t Opt-Out




In the social sphere, ads are everywhere. Digital marketing experts have estimated that the average person is exposed to 4,000 to 10,000 ads each day. Whether it’s a billboard, TV advertisement or a social media ad, that’s a whole lotta content to digest. 

From a brand perspective, it’s important to set yourself apart from the tsunami of daily content your target audience is hit with. And how do we do that? Personalised ads. 

Personalised ads (or targeted ads) are key to any marketing strategy - they’re simple, effective, and undoubtedly contribute to increasing revenue! If you’re not already, you should definitely look into running targeted ads.

We’ve put together a quick guide to help you navigate the world of targeted ads; what they are, the benefits and the downsides!

What Are Targeted Ads?

Targeted advertising is a tactic used among marketers across the board to produce ads which reflect specific interests, shopping behaviour and traits of internet users. Targeted ads are made by gathering customer data to segment audiences by such factors. This information is then harvested to make specific advertisements. 

Personalised and targeted ads are effective and a crucial part of a brand's success. By using relevant targeting, you’ll be wasting less time and money. Uninterested customers will be eliminated, and you’ll be more likely to convert audiences who are presented with your ads to follow through with a purchase.

The Pros

Personalised Ads Don’t Feel Invasive ✔️

Users can often find being bombarded with irrelevant ads invasive. How often have you scrolled through Instagram and been hit with the same ad time after time, despite it not being relevant? It happens more often than you think.

Targeted ads, however, have the opposite effect. The more personal the ad, the more likely a user will follow through with a conversion. According to research, 71% of people prefer tailored ads because they offer more customised content based on their shopping behaviour and purchase history.

Customers are less likely to engage with “random” ads that they have no interest in. Instead, they’ll opt for advertisements from brands they regularly interact with or purchase from.

Personalised Ads Increase Engagement ⬆️

Unlike non-targeted ads, the more personalised the ad, the higher engagement levels will be for your brand.

Suppose users are entirely new to a brand. In that case, they’ll be more inclined to click through and actively engage with the brand if the ad is specifically tailored to their interests, despite not engaging with the brand previously.

Actively aligning your content to a user’s preferences and interests can increase engagement by up to 60% and have the potential to generate, on average, 20% more revenue.

Customer Retention ✅

Customers want to receive marketing messages that are relevant to them. The less relevant the ad, the less engaged the audience will be. By investing in targeted ads, a brand will have increased customer retention because the ads are more specific and tailored to certain people.

Higher Revenue 💸 

Targeted and personalised ads will naturally increase conversions for a brand because the audience will be more engaged and interested. In turn, this will create a higher stream of revenue.

According to research, personalised ads actually increase the efficiency of marketing spend by roughly 10% to 30%. And, 94% of businesses who take advantage of personalised ads agree that it sets them apart from their competitors.

Lead Nurturing 🤗 

Lead nurturing is the process of developing and maintaining relationships with customers at every stage of the sales funnel. The process involves engaging your target audience by presenting them with the most relevant information possible. 

If prospective customers feel as though a brand understands their needs are being met and understood, leads (potential customers) will be converted into buyers. 

The Challenges

Balancing Personalisation and Privacy📱

There’s a fine line when it comes to personalised and targeted ads. How far is too far before it becomes perceived as creepy? Making an ad a bit *too* personal will result in customers retreating completely from purchasing. 

To combat this, it’s recommended that brands or businesses should ask for permission to harvest customer data and avoid being too personal in their approach.

They Need to be Heavily Regulated 🎯

When running targeted ads, you’re responsible for handling a lot of customer data. With The General Data Protection Regulation (GDPR), any data will need to be protected, and there are also privacy issues to take into account.

Before using any personal data, it’s crucial to ensure that your audience has consented to this being used!

Want to know more about the pros and cons of targeted ad use? Get in touch with us today. We’re free to talk to you about anything from Paid Social and PPC to Digital Marketing and everything in between.