According to a study by Adlook marketers and agencies are wasting budgets and raising privacy concerns by relying on outdated demographic targeting.
The research reveals major flaws in traditional segmentation methods based on age, gender, income, and lifestyle, highlighting the need for more accurate, privacy-conscious solutions.
The Flaws in Demographic Targeting
Adlook surveyed 1,325 online consumers to determine if they identified with the socio-demographic segments assigned to them through third-party cookie data. Results showed a significant disconnect between targeting assumptions and actual audience composition.
For example, only 18% of those targeted as “Women 18-24” fit that profile, while 43% were men and 35% were over 55. Similarly, 52% of the “Mums” segment were men, and 62% had no children. Even broader categories were flawed—40% of “homeowners” were actually renters, and 67% of those targeted at a secondary school education level had college degrees.
Even basic segmentation showed errors. Over 35% of impressions were eligible for both “Women” and “Men” segments, 55% fell into multiple age groups, and 28% qualified for both “Age < 34” and “Age > 55.”
Smarter Data Management for Better Results
This study highlights the urgent need for accurate data and proper data hygiene. Poor data leads to wasted ad spend, misclassification, and privacy risks. Brands must prioritise clean, up-to-date data and implement regular audits to refine audience definitions.
AI-driven segmentation, behavioural insights, and privacy-first approaches can optimise targeting across all marketing channels, reduce inefficiencies, and build stronger consumer connections. Consequently, investing in robust data hygiene and precise targeting is essential for success in a privacy-conscious world.
