What are personal media ads? A guide to proper use

What are personal media ads — and why do they work so well?

Imagine you get a message from a friend:

Hey you, all right? Was just consulting with Michael from Money Bank — it was really cool actually! They have mega offers for us, with nice discounts and so on. I can fully recommend it to you. Have a look if you like! 😊

No intrusive advertising promise. No marketing jargon. But a personal message — on equal terms, supported by genuine trust.

That is exactly what personal media ads are: recommendation messages prepared by companies, which are voluntarily forwarded by satisfied customers to potential new customers. Like an organic recommendation, personal media ads also convey trust — and significantly reduce acquisition costs.

“User-generated content (UGC), such as personal recommendations, increases the conversion rate by up to 144% and leads to an increase in sales of 162% per website visitor.” Ecommerce Institute Cologne

Personal media ads vs. traditional advertising

Targeting

Personal media ads: Personal media ads are based on the most precise targeting — the real personal relationship. Customers know better than any algorithm what their environment needs.

Social media ads: Social media ads are based on algorithmic targeting, which appeals to broad target groups. These ads are often shown to people who have little or no interest in a company, which can lead to wastage and lower opening rates.

contents

Personal media ads: The content of personal media ads is authentic, personally formulated and individually tailored to the recipient of the message.

Social media ads: Social media ads often consist of impersonal and standardized advertising messages that are created for a broad audience. They are often perceived as advertising, which can result in a lower engagement rate.

observance

Personal media ads: Personal media ads act like a recommendation from friends or acquaintances, which is why they are perceived as authentic. Since the message comes from someone you trust, there is a very high probability that it will be read and taken seriously.

Social media ads: Social media ads are easy to recognize as advertising and are often ignored or seen as annoying. Direct advertising from an unknown source reduces credibility and interest.

“63% of buyers find user-generated content to be more authentic than branded content.” Chainstorage

effectivity

Personal media ads: According to Nielsen, in 2022, a word-of-mouth impression leads to five times more sales than a paid impression on social media. Customers do the advertising work for the company by forwarding personal media ads on its behalf. This ensures a high level of credibility and significantly increases the efficiency of the ads.

Social media ads: It is becoming more difficult to reach the right target group through social media ads every day. The flood of the Internet makes users increasingly resistant to digital advertising. This results in higher acquisition costs and lower success rates compared to personal media ads.

How are personal media ads used?

1. Choose the right moment

Recommendations come from enthusiasm. It is best to use PMAs after a purchase or a “wow” moment, for example — exactly when satisfaction is highest.

2. Enable easy redirection

Personal media ads are loaded directly into the selected messenger and only have to be sent with one click.

3. Maintain voluntariness and transparency

Recommendations work best when they come from personal conviction and are intrinsically motivated — not through pressure or artificial incentives. It is therefore important to make it clear that sharing is voluntary and not mandatory.

5 best practices for using personal media ads

A good PMA doesn't have to be creative — but it must be human and personal.

1. Personal message, instead of promotional text
2. Easy to forward
3. Conveys real benefits instead of empty advertising promises
4. Placing a destination URL
5. If possible, include a contact person in the recommendation

How do personal media ads influence acquisition costs?

Personal media ads significantly reduce acquisition costs — because they rely on the personal relationship of satisfied customers and transfer their trust to potential new customers. This eliminates the need to laboriously convince them first, and the probability of a conversion increases significantly — while using minimal budget. Companies only invest in creating the message, but save on both effective closing and retargeting. The result: a highly efficient recommendation lever with an unbeatable cost-benefit ratio.

“A McKinsey study shows that personalized ads can reduce acquisition costs by up to 50% — while increasing revenue by 5— 15% and increasing marketing ROI by 10— 30%.” McKinsey

Long story short: advertising that is received

People don't trust brands — they trust people. That is exactly why personal media ads are so effective: They make real satisfaction visible and translate it into personal recommendations. Companies provide the text — customers ensure reach.

Simple, authentic and effective.