In 60 Seconds
The Targeting Myth
- •The Promise: 'Don't waste money showing ads to everyone. Only show ads to the 5% ready to buy.'
- •The Trap: When you narrow your audience to 'In-Market' only, your CPM (Cost Per Thousand) skyrockets 10x.
- •Cannibalization: Hyper-targeted ads often hit people who were going to buy anyway (Heavy Buyers).
- •The Math: A $10 CPM reaching 10,000 people usually beats a $100 CPM reaching 1,000 'Perfect' people.
- •The Conclusion: Growth comes from reaching the 'Whole Market' (all Category Buyers), not just the 'Active Segment'.
We are addicted to the "Sniper Rifle" approach. Facebook and Google sold us the dream of "Micro-Targeting." "Females, aged 34-36, who like yoga and own a Golden Retriever."
It sounds smart. It is actually financially inefficient.
The Problem with Precision
- Cost: Data is expensive. The more filters you add, the more the platform charges you.
- Scale: You run out of people. You show the same ad to the same 500 "Perfect Prospects" 20 times. They get annoyed (Ad Fatigue).
- Prediction Error: You think you know who the buyer is. You are often wrong. The 65-year-old man might need a Yoga mat for his bad back. You excluded him.
Broad Reach: The Shotgun
TV and Radio used the "Shotgun" approach. It built massive brands. In Digital, this means:
- Broad Geo-Targeting: "Everyone in this Zip Code."
- Broad Interests: exclusion lists, but minimal inclusion lists.
When to Target?
- Retargeting: Yes, be specific. They already visited you.
- Service Area: Yes, don't advertise in a city you don't service.
- But otherwise? Go Broad. Let the Algorithm find the buyers.
[!TIP] The Algo is Smarter In 2026, Facebook/Google AI is smarter than your settings. Give it a Broad audience and let it optimize for "Conversions." It will find the Golden Retriever owners cheaper than you can select them.
Read Next in This Hub:
- Scale Equation - The sister article.
- Light Buyers - Why we need volume.
Related System:
- Local Visibility Systems - Broad awareness.