The use of specific targeting can result in a negative user experience and higher CPMs, while broad targeting tends to result in a positive user experience and stable low CPMs over time.
The use of specific targeting in advertising has its advantages, such as reaching a highly targeted audience. However, if this PPC & Programmatic strategy style targeting is used, it can negatively impact the user experience. This is because users are made to feel like they are being bombarded with ads that are not relevant to their desired experience, leading to a sense of intrusion and annoyance. Additionally, using specific targeting results in a smaller pool of potential impressions, which drives up the cost per thousand impressions (CPMs).
On the other hand, broad targeting, which provides less restrictions on the ad’s audience, prioritizes in a better user experience. This approach also allows for a larger pool of potential impressions, which can help to keep CPMs low over time. As a result, broad targeting is often seen as a more sustainable strategy for advertisers, as it can help to maintain stable and low CPMs, while also delivering a positive user experience.
The more negative experience you provide to the end-users, the more money Facebook will charge you to reach the next person, which is why it’s important to target broad to reach the most amount of people with the least amount of harm.
This is the way that Facebook’s advertising algorithms work. If an advertisement is shown to users who have a negative experience with it, such as through high rates of users skipping or hiding the ad, Facebook may charge the advertiser more money to reach the next person. This is because Facebook wants to provide a positive user experience, so ads that perform poorly are less likely to be shown to users. As a result, it may be more cost-effective for advertisers to target a broad audience, rather than a specific, highly-targeted one, in order to reach more people with the least amount of harm.