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Social media users grew, reaching a total of 4.7 billion as of early July 2022.
It showed that 66 percent of people have noticed receiving targeted ads for a product online.
62 percent of users reject targeted advertising.
The advertising industry continues to generate a lot of data that, as the days go by, new important trends emerge that brands must begin to evaluate. A recently published study revealed that targeted advertising makes a brand 28 percent more likely to be frowned upon by consumers.
The internet is the main tool for companies to make this type of proposal, Therefore, for many, targeted advertising is gaining strength in the scope of company strategies. concerned about growth in line with changing times.
Targeted advertising refers to segmented promotions, according to the target audience. Specialists highlight that this segmentation takes into account the interests previously shown by the target audience, where the person from that sector is immersed and also, other behaviors of the group. Instead of wasting labor, time and money distributing often ineffective advertisements.
A Cheetah Digital study concludes that 62 percent of users reject these types of targeted ads, and Given these misgivings, it seems clear that the message from a company that advertises its products or services in this way can be contradictory.
Also, according to the report MasterCard SpendingPulse, January 2022 was a positive month for almost all retail sectors, where the investigation revealed that online sales grew by 10.4 percent year-on-year, with the increase in the number of platforms, the evolution of advertising formats and the emergence of interaction strategies.
Does targeted advertising make a brand look bad?
Today, an estimated 66 percent of people have noticed receiving targeted ads for a product online “after having spoken of him in person”as demonstrated by a YouGov study.
In that context, a study by Sortlist highlighted how it is currently headed targeted advertising throughout in at least 6 countries, where the firm surveyed 500 users.
The investigation reviewed the brands that use this advertising, including when people believe that their devices are listening to their conversations when it comes to showing them promotions. Therefore, data from the study indicated that users are seven times more likely to negatively perceive a brand that directs ads to them if these users think about their privacy. Since they do not like to think that you listen to them.
In addition, the greatest user reaction to targeted advertising is negative.and the investigation highlights that 37.4 percent, they feel that their privacy is violated every time they are targeted with ads so precise that it seems that their mobile is listening to them.
On the one hand, the content of the ad may be relevant and get some conversions, but on the other, the respondents to the research indicated that this type of advertising can be considered as intrusive and invites users to permanently move away from the company that manages it.
New generations and targeted advertising
Given these data, it is important to consider that targeted advertising is increasingly losing effectiveness due to that the percentage of users concerned about their privacy is increasing, especially by consumers of the new generations.
Storlist, noted in his study, that younger users they are the most likely to react negatively to targeted advertising.
“28 percent more likely that a user between the ages of 18 and 24 will negatively perceive brands that use targeted ads, but will continue to buy it,” the research explains.
As it is estimated that the segment of 18 to 24 years, they are prone to buy through targeted ads and have 73 percent more likely to have seen those ads on TikTok compared to all other generations combined.
The study also showed that of all users, those over the age of 54 are twice as likely to positively perceive a brand after a targeted ad.
And this is how companies continue to adapt their hyper-targeted ads to their audiences, which are increasingly more aware of all the privacy implications to which they are exposed with the use of the digital world, but they also manage how much information they are willing to give away.
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