{"id":3188,"date":"2022-07-18T01:19:37","date_gmt":"2022-07-18T05:19:37","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2022\/07\/18\/think-targeted-advertising-is-over-think-again\/"},"modified":"2022-07-18T01:19:37","modified_gmt":"2022-07-18T05:19:37","slug":"think-targeted-advertising-is-over-think-again","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/think-targeted-advertising-is-over-think-again\/3188\/","title":{"rendered":"Think Targeted Advertising Is Over? Think Again"},"content":{"rendered":"\n

By Alex Song, CEO and Founder, Proxima<\/em><\/p>\n\n\n\n\n\n

Yes, it\u2019s true — targeted advertising has taken some big hits over the past several months. With the volatile economy and new privacy restrictions, it\u2019s gotten harder for advertisers to target consumers on social media platforms the way they\u2019d like to. Some pundits have even predicted<\/a> that these barriers could spell the end of targeted advertising as we know it.<\/p>\n\n\n\n\n\n\n\n

But all is not lost. Targeted advertising can still bring measurable returns if brands can find new, more effective vehicles for reaching their tribe and adjust their advertising strategy accordingly. In pandemic terms, it\u2019s time to pivot. If executed thoughtfully, pivoting in response to the current moment could be a great opportunity for innovation and growth.<\/p>\n\n\n\n\n

The Problem With Broad Targeting<\/h2>\n

iOS privacy rule changes have essentially \u201ccut the signal\u201d between consumers and advertisers, leaving advertisers scrambling to reach their target consumers, while upholding new and evolving privacy standards. This, combined with the volatility of media tech stocks, the rise of new channels like TikTok and Elon Musk\u2019s potential Twitter takeover, have left advertisers\u2019 heads spinning in recent months.<\/p>\n\n\n\n\n\n

To answer this challenge, platforms like Meta lowered CPMs and encouraged brands to broaden their targeting. To adapt, advertisers had to refine their approach with frequent creative asset iteration in order to learn more about the market. This kind of poor targeting can degrade brand equity. Brands risk alienating audiences with the wrong messages and limiting the learnings that come from interacting with your real audience. (For example, no one benefits when a 15-year-old receives ads for diapers.)<\/p>\n\n\n\n\n

The Appeal of Tech-Enabled Data Sets<\/h2>\n

In the absence of quality first-party data, advertisers are seeking new ways to target consumers. One solution is to leverage AI-enabled datasets. Taking advantage of independent pools of aggregate third-party data can help advertisers build high-performing audiences for ad platforms that now have a limited ability to track consumers. This approach not only allows brands to build on their profiles of existing prospects and customers \u2013 it can give insightful perspective on new, untapped segments.<\/p>\n\n\n\n\n\n

Using anonymized third-party databases creates a wall between the advertiser and the data, which protects consumer privacy while still providing brands with the information they need to acquire the right customers. Decentralizing underlying customer data benefits advertisers by:<\/p>\n\n\n\n\n