Microtargeting: The Dark Side of How Companies Exploit Your Data

Ever wondered how you come across a product or service on social media platforms that you searched for in Google? To cut you some slack, it’s microtargeting, and yes companies track your data.

The idea behind microtargeting is to use consumer data to create highly personalized messages. Companies first collect the data from various sources, analyze it, profile it, and target you.

The problem is the privacy issues because it often involves numerous companies that users may not be aware of, leaving them uninformed about how they are being targeted. This is exactly what we have discussed in this blog, read on!

What is Microtargeting?

Microtargeting also known as micro-niche targeting is the practice of using consumer data and demographic information to send tailored advertising messages to specific individuals or small groups. This marketing strategy uses recent technologies to collect online data and create advertisements that reflect a person’s preference.

This practice, especially psychographic targeting, uses detailed personality and behavior data to create profiles based on perceived interests, values, and vulnerabilities. Research reveals that websites related to sensitive topics like depression frequently share user data with advertisers, data brokers, and tech companies, raising serious concerns about the fairness, legality, and impact on privacy rights.

Also Read: Conversational Marketing Revealed: Definitions, Benefits, and Best Practices

How Does Microtargeting Work?

Microtargeting works by collecting, retaining, and analyzing an individual’s personal information. This information aka data points is obtained from different sources like purchase history, public records, browsing history, etc.

Some companies sell such data to other companies so that they can obtain a comprehensive set of information about individuals. Where do these companies get their data from?

Well, all the time you spend scrolling through Facebook, Google, etc., they are collecting and selling your data. But that’s a different story.

Micro-niche targeting also uses tools like ‘Cookies’, ‘Tracking Pixels’, and ‘Social Plugins’. These tools track your browsing behavior like habits, preferences, links clicked, social interactions, etc. to create a profile about you.

This profile is then used to create personalization in customer experience specific to their interests and preferences. Social media platforms can use electronic tools to engage audiences, addressing users directly or through third parties.

This targeting model also uses predictive analytics and modeling to identify a user’s intent, which helps personalize content. In the future, artificial intelligence (AI) tools could be used to create personalized advertising.

If you search for Adidas Samba and receive targeted ads for sports shoes, sportswear, or similar accessories, this is a typical example of micro-niche targeting advertising.

Another example is the company Cambridge Analytica created the capacity to “micro-target” specific customers or voters with messages most likely to affect their behavior.

This is done by adding the OCEAN psychological profile (openness, conscientiousness, extraversion, agreeableness, and neuroticism) analysis to other private and public data. Interested businesses buy “products” of this kind, such as personal data.

How Does Microtargeting Benefit Businesses?

By analyzing data about their target groups, companies gain valuable insights into the behavior and wishes of their customers. With this understanding, they can better tailor their marketing strategies to the needs and preferences of their customers.

Micro-niche targeting also provides insights into competitors’ strategies by examining data about their target groups. This information can give companies an edge over their competitors and help them find new growth opportunities.

Analyzing the target audience in smaller groups can lead to better decision-making. It allows companies to tailor their marketing messages and campaigns to specific groups, increasing the effectiveness of their efforts.

By identifying specific audience segments, companies can create personalized and relevant content for these groups. This targeted approach increases the chances of delivering the right message to the right people, resulting in higher engagement and conversion rates.

Is Microtargeting the Death of Privacy?

Now that we know how micro-niche targeting exploits data, what does it say about data privacy? Well, nothing really.
There are many human rights groups, privacy advocates, and consumer protection groups raising alarm about this widespread invisible attack. Since these data are collected under terms of services or user agreements, customers might not even notice.

The public became aware of the frequency of microtargeting as a result of the Cambridge Analytica incident. Among other campaigns, Cambridge Analytica ran micro-niche targeting ads during the 2016 US presidential election and the Brexit vote.

They claimed to own up to 5,000 data points relating to millions of people. The data was obtained via a Facebook-connected app that collected the information of the user and their friends without disclosing that the information would be collected and used for commercial purposes.

Micro-niche targeting for politics is not a new thing. Over the years, this type of marketing has been used for campaigns, but with the rapid integration of AI, there’s something new to worry about, says studies.

This is because political messages can be highly personalized and persuasive, potentially impacting election outcomes. AI can tailor messages based on personality traits, making campaigns more effective.

This raises concerns about fair elections, as these targeted ads could be misleading or manipulative and disproportionately favor financially strong campaigns. It is also proposed to develop models that warn users about micro-targeted content to mitigate its impact.

Stay Safe from Microtargeting

As Google recently dropped its plan to eliminate third-party cookies, staying safe from microtargeting becomes even more difficult.

There are some methods you can take to avoid falling through the cracks like denying cookies, using privacy tools like ad blockers, VPNs, and adjusting your browser settings to limit data sharing. Some social media companies give a range of features, such as the option to restrict micro-niche targeting, to help users choose how they engage and share content on social media.