Personal Media Ads are one of the latest trends in the marketing world. The advertising channel is based on the relationship of existing customers and makes Word-of-Mouth Marketing strategically usable for the first time to advertise products and services.

Personal Media Ads are specifically generated personal purchase recommendations from existing customers and are therefore highly effective.
The following trends and developments explain why this approach is becoming so important right now and why companies should consider this channel:

1. Rising costs in marketing

Digital advertising is becoming increasingly expensive – costs are rising year on year. This is due to strict data protection guidelines, which make targeting more difficult in terms of efficiency and precision, as well as the rising flood of advertising on the internet. Companies are therefore looking for cheaper alternatives to reach their target groups effectively. Personal Media Ads are a promising solution here. They rely on personal recommendations from customers, which are significantly more cost-efficient 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

What makes this even more important is the fact that the credibility of traditional media and advertising has declined sharply.

3. Leads

Leads generated by a personal recommendation not only convert into paying customers faster, but are also more cost-effectively.

“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 large scatter loss. 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 addressed in a targeted manner, which increases the efficiency of this form of advertising enormously. Especially today, when it has become more difficult to reach relevant target groups without specific targeting, personal recommendations solve this problem perfectly.

personal media ads solve targeting problem

5. Social Proof

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

6. Long-term customer retention

Companies that gain new customers through personal recommendations often benefit from higher customer satisfaction and loyalty. Satisfied customers in turn recommend the company to others and buy again.

“Customers who have received a recommendation from other customers have a 37% higher retention rate.“

Annex Cloud

“Referred customers have a 16% higher lifetime value compared to non-referred ones. “

Harvard Business Review

Long story short

Consumer behavior and the way they interact with advertising is constantly changing. Personal Media Ads are a response to the current changes in the marketing world and promise a promising future by leveraging the effectiveness and trust of personal relationships and making word-of-mouth advertising strategically usable. 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 use this trend early on have the opportunity to secure a decisive competitive advantage.

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