Marketers have long relied on this data to craft tailored messages for specific groups. However, recent studies from Adlook have cast doubt on its precision and reliability, prompting a reassessment of its effectiveness in modern marketing.
Findings from these studies demonstrate that socio-demographic targeting is inherently flawed. More than half of users were placed in overlapping age groups, classified as parents when they have never had children or conflicting gender segments, undermining the principle of mutual exclusivity. Furthermore, self-reported data showed little correlation with assigned segments, suggesting that socio-demographic data is either inherently unreliable or quickly becomes outdated. As a result, segmentation often resembles random selection rather than precise targeting.
"These algorithms attempt to predict users’ demographics based on their online behaviour, browsing history, and other digital footprints. However, these predictions can be flawed due to outdated models or incorrect assumptions, leading to significant inaccuracies," the report stated.
"Additionally, a substantial portion of socio-demographic data is outdated. Data collected at a single point in time may no longer reflect an individual’s current situation, as life circumstances and preferences evolve. This lag in data relevance can severely undermine the effectiveness of targeting efforts. Furthermore, the user of a shared device at any given time might not align with the original socio-demographic classification, further increasing the risk of inaccuracies, particularly with older data."
An analysis of 151,032 impressions revealed substantial inconsistencies in user classification:
These discrepancies call into question the reliability of socio-demographic data in targeted marketing.
Self-reported data vs. assigned segments
In another part of the study, users targeted based on socio-demographic segments were asked to self-report their details through survey banners. The comparison between self-reported data and assigned segments showed no significant improvement over the full sample. This suggests that socio-demographic targeting may not provide the expected level of accuracy in refining marketing efforts.
This means segmentation frequently resembles random assignment rather than accurate targeting.
