Should CPG advertisers pursue demographic or interest targeting strategies on Facebook?

Facebook recently conducted an analysis of ad campaigns on its platform to understand the impact of demographic versus interest targeting strategies on brand outcomes for CPG (consumer packaged goods) advertisers. 

The analysis covered 50 CPG campaigns in EMEA.

Finding that no single approach works best in all cases, the analysis highlighted three key factors advertisers should consider when developing the most appropriate strategy:

Aim for a broad qualified reach and avoid overnarrowing your target audience 

The data found that in about half of the campaigns, the selected interest audiences were too narrow, thus significantly restricting reach compared to the demographic. In this case (when the selected interest audiences were very narrow), demographic audiences had almost twice the reach (+99%) than interest audiences with equal budgets.

Among campaigns where reach was significantly reduced by interest targeting, activity was slightly higher (+22%) compared to demographic audiences.

As a result, the demographic strategy was 1.6 times more likely to be a winning strategy and delivered lower-cost brand results compared to the engagement strategy in these campaigns.

Also Read: Report: Average App Conversion Rate per Category in 2021

Both interest and demographic target strategies can deliver scalable reach

Among the other half of the analyzed campaigns, when both demographic and interest audiences were able to achieve comparable reach (within 20% difference) within the same budget, the analysis showed that they were equally likely to be the winning strategy and deliver low-cost brand results.

The optimal targeting strategy depends on your campaign objective

One of the most important findings of the analysis was that interest audiences may perform better at driving purchase intent and consideration, while demographic audiences may be more likely to drive upper brand metrics, such as brand awareness, familiarity and message association.

Written by Maya Robertson


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