That's why personal media ads are more important than ever — trends and developments

1. Increasing costs in marketing

Digital advertising is becoming more and more expensive — costs are rising year by year. This is due to strict data protection guidelines, which make targeting efficiency and precision difficult, as well as to the increasing flood of advertising on the Internet. Companies are therefore looking for cheaper alternatives to effectively reach their target groups. Personal media ads are a promising solution here. They rely on personal recommendations from customers, which are significantly more cost-effective and enable precise targeting.

2. Authenticity and Trust

In times when trust in brands and companies is more important than ever before and we are bombarded with countless advertising messages every day, personal recommendations are more valuable than ever. Trust is playing an increasingly important role in purchasing decisions.

“According to a Nielsen study, 92% of consumers trust recommendations from friends and family more than any other form of advertising. ” nielsen

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What reinforces the significance is the fact that the credibility of traditional media and advertising has declined sharply.

3rd leads

Leads that result from a personal recommendation not only convert faster but also more cost-effectively into paying customers.

“Studies have shown that such leads have a 30% higher conversion rate than leads from other channels and a 16% higher lifetime value.” UpLead

4. Relevance for the target group & personalization

Nowadays, companies can no longer reach their target group without a great loss of diversification. Personal media ads counteract this problem. Recommendations from friends and family are often better tailored to the individual needs and preferences of consumers, as they do not use an algorithm but are based on personal relationships. This makes recommendations particularly relevant and efficient. Personal media ads reach exactly those people who are really interested in a product or service. The target group is targeted, which enormously increases the efficiency of this form of advertising. Especially today, when it has become more difficult to reach relevant target groups without targeted targeting, personal recommendations solve this problem perfectly.

5. Social proof

Recommendations serve as social confirmation (social proof). When other people have had positive experiences with a product, many tend to follow suit and buy the product as well. This principle works primarily because people want to reduce uncertainty and believe that they are making the right decision by imitating the majority. People also have the need to be accepted and recognized, which is supported by imitating the behavior of others. In addition, this method is more efficient for decision making. These mechanisms make social proof a powerful tool.

6. Long-term customer loyalty

Companies that acquire new customers through personal recommendations often benefit from higher customer satisfaction and loyalty. Satisfied customers recommend the company and buy again.

“Customers who have received recommendations from other customers have a 37% higher retention rate. ” Annex Cloud

“Customers who are acquired through referrals have a 16% higher lifetime value compared to customers who were not acquired through referrals. ” Harvard Business Review

Long story short

Consumer behavior and the way they interact with advertising is constantly changing. Personal media ads are an answer to the current changes in the marketing world and promise a promising future by using the effectiveness and trust of personal relationships and making word-of-mouth advertising strategically applicable. The first tools that make this channel usable for companies are already on the market. Personal media ads could therefore not only revolutionize the way companies communicate with their target groups, but also enormously increase the effectiveness and efficiency of their advertising measures. Companies that recognize and take advantage of this trend at an early stage have the opportunity to secure a decisive competitive advantage.