How target marketing can affect your spending habits.

You may not realize it, but when watching tv, surfing the web, or scrolling through your social media feed, the ads you see have been targeted towards you. Target marketing is an effective method companies use to sell their products or services to specific groups of people. They do this by learning about those people’s needs and wants so they can made ads or offers that those people will find interesting. For example, if a company wants to sell children’s toys, you’ll see more ads for toys during kids’ tv shows.

Since the popularity of social media has risen, it has become one of the essential tools for any business looking to target a specific audience. One of the biggest things you may notice when scrolling through social media is the types of ads that are being shown to you. If you were googling a specific vehicle moments before, there is a great likelihood that you will then be shown vehicle ads. Companies are able to target these ads to you using advertising cookies, which gather information from you on your device to be able to show you relevant ads. 

The goal of the target marketing is to appeal to the right people, and in return, generate sales. Target marketing can have a significant influence on your purchasing and continuously encourage you to spend more money. There are a few ways this can be achieved:

1. Personalized Advertising – As mentioned above, target marketing relies on collecting data about their consumers preferences, demographics, and behaviour. This information is used to deliver personalized ads that target your specific needs and interests with the hopes that you’ll be enticed enough to make a purchase or sign up for some service.

 
2. FOMO (Fear of Missing Out) – Targeted marketing can often utilize tactics like “Limited-time offer!”, flash sales, or exclusive discounts to create a sense of urgency and create a sense of fear that you will miss out on a great offer if you don’t act right away. 

3. Emotional appeal – Target marketing often uses an emotional appeal to connect with consumers on a deeper level. They try to evoke emotions such a happiness, nostalgia, or the desire to be accepted socially, and link those emotions to the product they are advertising. By targeting emotions, they hope to influence your spending decisions based on a how a product or service makes your feel.

4. Influencer Marketing – With the popularity of social media comes the popularity of influencer marketing. Influencers who have managed to establish credibility and a loyal following are able to endorse products or services to their followers. If you are a loyal follower of an influencer, you are more likely to take notice of their recommendation and it can influence your spending decisions. The hopes are with influencer marketing that people will have the desire to keep up with their lifestyle which can lead to increased spending on the products or services they endorse.

To avoid falling victim to target marketing strategies, it requires some awareness and conscious decision making. 

1. Be mindful of the marketing tactics presented to you – Recognize that marketing messages are designed to encourage you to buy a product or service. 

2. Understand your needs and priorities – Take the time to understand your own needs, preferences, and priorities. By knowing what you truly value and require, you can make your purchasing decisions based on your own criteria rather than being swayed by marketing tactics. 

3. Set a budget and stick to it – By establishing a budget to take control of your spending, it will help you avoid impulse buying which will ensure you don’t overspend. 

4. Limit your exposure to target marketing – In most social media sites, within the settings there is an option to opt out of targeted advertising. By doing so, you have less exposure to ads and will be less tempted to give into temptation. If the option to opt out does not exist, you can also make a conscious effort to spend less time on social media. 

Target marketing is a common practice, but being aware of the techniques used, you will be able to make informed decisions and maintain control over your finances. 

If target ads have persuaded you to make purchases out of your financial means, and have found yourself in a tough spot financially, there are options. 

If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options. Every financial situation is unique and viable options can differ from person to person. A conversation free of judgment and cost, is the first step to determine options for debt that make sense for you. For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.