What’s the risk of demographic bias in targeting?
Demographic bias happens when targeting decisions exclude or disadvantage people based on age, gender, location, or income rather than behavior or intent. This creates unfair outcomes, alienates subscribers, and in some cases violates fair lending, housing, or employment laws.
For example, showing high value product recommendations only to high income ZIP codes excludes subscribers who might be interested and able to purchase. Targeting promotions by gender reinforces stereotypes and ignores individual preferences. These decisions limit reach and damage brand perception.
Bias also creeps in through proxy variables. Using college degree status or homeownership as a filter might seem neutral but can correlate with protected characteristics and create discriminatory patterns.
Mitigate bias by prioritizing behavioral and preference based segmentation over demographic assumptions. Test segments for fairness and inclusivity. Make sure your targeting logic serves subscriber interests rather than outdated stereotypes.
A well charted course welcomes all vessels that meet the qualifications, regardless of the flag they fly. Fair targeting expands opportunity and improves outcomes.
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