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How Poor Digital Ads Placement Wastes More Than Budget

There’s a fine line between optimizing for the right audience and yelling into the void. Over the last few weeks, I’ve seen a parade of YouTube digital ads that do the latter. From political campaigns I can’t vote in, to DraftKings Casino promos that aren’t even legal in my state and judicial elections that hold no jurisdiction anywhere close to Southern Illinois. As someone who spends nearly every day thinking about digital ads strategies, I can’t help but cringe quite a bit.

This isn’t just a case of bad luck or misplaced algorithms. It’s a reminder that poor ad targeting means much more than simply wasting money. It exposes how many marketers are measuring the wrong things, possibly on purpose.

A screenshot of one of Draft Kings's digital ads on YouTube

The Issue with Ineffective Targeting in Digital Ads

Digital ads give us more tools than ever to get specific. We can target by ZIP code, interest, household income, or even intent. Yet somehow, I’m seeing candidates for city council races 600 miles away.

It’s not just annoying, it’s wasteful. Every irrelevant impression burns a fraction of a budget that could’ve gone toward actual customers or voters. When you multiply that by thousands of wasted impressions, you start to see how millions of dollars can disappear.
And it’s not limited to politics.

The DraftKings Example: When Irrelevance Looks Like Strategy

One of the clearest examples of the cost of lazy targeting in digital ads came from a DraftKings Casino ad I saw on YouTube. The creative was clean and polished, enticing viewers with opportunities and start playing instantly. There was only one problem: online casino gaming isn’t legal in Illinois, yet that’s exactly where this ad was served.

Curious, I clicked. Despite being in Illinois. I was taken straight to the DraftKings site, free to sign up for an account with no geolocation restriction at the entry point. That experience raises an interesting question: was this simply a targeting oversight, or a deliberate funnel?

It’s easy to imagine a scenario where users from restricted states click, sign up, and only later discover the casino feature doesn’t work where they live. At that point, DraftKings still has their account, contact information, and marketing permissions. A perfect opportunity to cross-promote sports betting, which is legal in many of those same regions. I’m not suggesting this was a coordinated deception, but the mechanics create a conveniently profitable situation. If a campaign’s success metric is impressions and sign-ups, not conversions, the numbers look great.

That’s the subtle danger of performance metrics without accountability: they can make inefficiency look like success.

When “Reach” Becomes the Wrong Goal

We’ve all heard the pitch: “This campaign generated two million impressions!”
It sounds impressive until you remember impressions don’t equal results in digital ads. Somewhere along the way, marketing teams got so addicted to volume that precision stopped mattering. In addition, those unethical teams and companies could sell those “results” to uneducated clients as successful numbers.

And here’s where I’ll be a little more blunt: sometimes, it’s not an accident.

When an agency or internal marketing team is under pressure to “show results,” high impression numbers can create the illusion of success. If the audience doesn’t matter, every view counts. It’s a metric that looks great on paper but does nothing for sales, votes, or leads. In other words, it’s number padding or marketing fluff.

Let’s be honest: if a political ad is being served in a state where the candidate’s name won’t even appear on the ballot, that’s not strategy. That’s a spend report waiting to be justified.

 

Why It Happens

There are a few key reasons targeting in digital ads often misses the mark:

  1. Overreliance on automation. Platforms like Google and YouTube push “recommended” targeting settings that sound efficient but often spread too wide.
  2. Misunderstanding audience layers. Marketers may target broad demographics (“men 25–54”) without geographic or behavioral filters.
  3. Rushed campaign setup. When deadlines loom, it’s tempting to let algorithms fill in the blanks.
  4. Misaligned incentives. Agencies or teams measured on impressions, not conversions, have little reason to tighten targeting.
    The result? A campaign that’s technically active, but strategically asleep.

The Human Cost of Lazy Targeting

It’s easy to think of wasted ad spend as an abstract loss. But there is a ripple effect.

  • Clients lose trust. When results don’t match the promise, confidence in your digital marketing strategy erodes.
  • Audiences tune out. Viewers become numb to ads that clearly don’t apply to them.
  • Brands lose credibility. Showing irrelevant or even illegal offers can make a company look careless and manipulative.

Great marketing strategies don’t aim for the biggest audience; they aim for the right one.

It’s About Integrity, Not Just Analytics

There’s a deeper layer to all of this. Advertising has always been about persuasion, but digital platforms have turned it into a game of numbers. And somewhere along the way, integrity got lost in the mix.

When your ad budget goes to people who can’t legally or logically respond, or worse, when that inefficiency is ignored because it makes reports look better, you’re not just wasting money. You’re eroding the trust that keeps clients, consumers, and campaigns alive.

Final Thought

The next time you see an ad that makes zero sense for your location or situation, a marketing team chose reach over relevance, and someone’s paying for it.

Good ad targeting isn’t glamorous, but it’s what separates a smart campaign from a wasteful one. Whether it’s YouTube or any other platform, precision isn’t optional.

Author Matt Carnaghi

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