You Are the Product: How Targeted Ads Became the Most Powerful Tool of Influence in the Digital Age

“It’s not just what you buy — it’s what you think, fear, and believe. And someone paid to shape it.”

By Thulasy Suppiah, Managing Partner of Suppiah & Partners

Introduction: The Hidden Power of the Ad Box

Ads used to sell shoes. Now they sell narratives. The practice of highlighting the features and benefits of products and services to a mass audience has evolved. Enter the age of programmatic marketing where big data, and particularly our data has reshaped how and why advertisers target you and I. Today’s stories are curated to reach us based on our emotional vulnerabilities and individual interests. It reaches us through our personal devices and social media platforms the moment we click on something online. These narratives could be overt or covert, but highly personalised based on analyses of our personal demographics and online footprint, making today’s advertisements a precise and potent tool of influence or exploitation.

In Malaysia, numerous charlatans used Artificial Intelligence (AI) and deepfake to manipulate the image of Datuk Siti Nurhaliza, a local artist with a massive following, to market fraud investments. They also misused the brand identities of trusted online media portals (like The Star and Free Malaysia Today) to scam her followers. One fraudster was even able to imitate her voice and generate fake video calls to tug at the heartstrings of fans, inviting them to invest in the same platform as her.

While the use of big data, visual media and social media platforms to sell narratives have revolutionised branding, there is a dark side to how personal data is being used to psychologically tune and manipulate consumers’ vulnerabilities. On the one side, organisations are under pressure to acquire increasingly detailed information about their consumers, on the other end, ad fraudsters are stealing this information to unethically benefit themselves.

The New Advertising Industrial Complex

Unlike traditional marketing, programmatic advertising relies on real-time insights of consumer online behaviour and interests, to automate precise advertisement space buying on a large scale. Using consumer’s personal information, advertisers are able to get the right brand in front of the right audience at the right time, within seconds. Such software, known as ad-tech (advertising technology) or supply side platform (SSP), can apparently access thousands upon thousands of publishers’ (owners or managers of websites with ad space to sell) sites at once to sell advertising space to the highest bidder.

Here’s what’s happening at the blink of an eye, behind the scenes during each programmatic advertising auction:

Targeting

When I visit a website, the publisher’s platform puts the ad space up for grabs. At the same time, the ad-tech software leverages my activity data to match the most suitable ads.

Bidding

In milliseconds, the software automatically calculates and places real-time bidding (RTB) for that ad spot based on all the data-surveillance they have derived about me.

Ad Serving

The advertiser with the highest bid wins! Their ad instantly appears on my screen.

Optimisation

With every impression, advertisers gather performance data to optimise future bids and improve targeting.

All of the above happens within seconds. While advertisers were initially enchanted, the increased dominance of ad space by just a few ad-tech companies raised concerns. Alphabet (Google’s parent company), Amazon and Meta control more than half (55 per cent) of global advertising spend outside China this year, according to Warc’s latest Q2 2025 Global Ad Spend Forecast.

This over-dominance allows Big Tech companies to raise prices, control transparency and what we see online, and limit opportunities to ad space bid winners. But companies are fighting back. Now, ad buyers are looking for SSP’s or ad tech companies that can benefit them in a positive way. Before they sign with a programmatic marketplace operator, they ask a critical question: How much access will their company have to quality ad inventory — and how much exposure do they have to the junk? SSP’s are now under pressure to provide more transparency and accountability, all detailed through structured contracts.

Data Extraction as Default

Every single moment, Apps, social media platforms, our devices and the websites we visit, are gathering data about our online visits, how much time we spend there and the type of device or browser we use. It saves our preferences and personal information, notes our location and what we’ve left in our online shopping cart, then shows us personalised content based on all this data.

Our online activity is usually tracked with a cookie or pixel which identifies us even after we leave the site. Our activity can also be tracked over different internet-connected devices, like our laptop and smartphone.
According to a 2022 study by cybersecurity company NordVPN, on average, a website has 48 trackers. Some sites sell this data to third parties (like Google). Information collected is used to serve more targeted and intrusive ads; some that follow us from website to website.

When a website we visit tracks us, that’s first-party tracking. When a website we visit lets another company track us, that’s third-party tracking.

Third-party tracking companies can track us across most websites visited. For example, if I visited a website about a country I wish to travel to, I might almost immediately see ads suggesting hotel accommodation options while visiting other websites.

Tracking our online footprint has become the default setting, and our consent is often buried deep in fine print. In 2022, NordVPN found that around 30 per cent of third-party trackers belong to Google, 11 per cent to Facebook, and 7 percent to Adobe. As of 2025, Google still has the biggest share of trackers. Thankfully, on the other extreme, several browsers are actively combating third party cookies. Brave, Firefox and Safari have blocked third party cookies by default since 2019, to make our online life more private.

Brave is also the only browser that offers to randomise fingerprint information. Digital fingerprinting is a method to build a profile of me or you based on our system configuration. It can include information about our browser type and version, operating system, plug-ins, time zone, language, screen resolution, installed fonts, and other data. Even when third-party cookies are turned off, sites can still identify us through fingerprinting – a more worrisome concern as this function cannot be removed. Even if we delete our cookies, we can be recognised through our digital footprint.

In 2024, Google announced it will no longer phase out third-party cookies in Chrome. However, it will allow users to make informed choices about their web browsing privacy. Overall, there seems to be pressure for the tracking landscape to change, and hopefully this translates to safer online browsing for all.

Targeted Ads vs Targeted Harm

According to Forbes Magazine, advertisers know that 91 per cent of consumers are more encouraged to purchase when a brand personalises its communication with them. So they build their messaging based on an audience’s demographics — who they are, what they like, where they are located and what they are most likely to purchase. There are key benefits to this approach. It is effective to market products to those most likely to buy them.

For example, let’s say my dad has just retired and is keen to pick up diving. As he searches online to facilitate this new hobby, a retargeting campaign would suggest safety gear, resorts for the best diving experience, diving coaches or a local diving community – most of which turn out to be extremely helpful and provide value to my dad. He might also end up supporting a remote but extremely gifted maker of diving suits.

While targeted ads are the smartest spend in marketing, they can put consumers at risk when the targeting becomes predatory. Scammers can buy our personal data and use it for purposes more devious than targeted ads and advertising campaigns.

Financial ads targeting the poor

In 2013, the US Senate Commerce Committee found that data brokers were targeting poor consumers by grouping them based on their financial vulnerability. Among terms used to categorise the poor into subsets were: “Zero Mobility”, “Burdened by Debt – Singles”, “Hard Times”, “Humble Beginnings”, “Very Elderly”, “Rural and Barely Making it”. This data was then used by unscrupulous parties to market risky financial products or illegal loans with high interest rates to those who could least afford them.

What began as personalisation becomes profiling — and often, exploitation.

While some data brokers prohibit customers from misusing personal information to sell debt-related products, there is lack of industry oversight to enforce these contract terms.

Investment scams preying on individuals looking for high returns

In 2024, social media scams in Malaysia continued to be a significant issue. The Securities Commission Malaysia (SC) identified social media platforms such as Facebook and messaging apps like Telegram as primary channels for online investment scams. Victims were targeted with unlicensed products and services. In 2024 alone, the Royal Malaysia Police’s Commercial Crime Investigation Department recorded 35,368 online scam cases, resulting in RM1.6 billion in financial losses—accounting for 84.5 per cent of all commercial crimes reported during the year.

There has also been the increased use of deep fake technology to impersonate influential figures such as Datuk Siti Nurhaliza to draw fans into investment scams.

Discriminatory ads

A study released in 2019 entitled Discrimination through optimization: How Facebook’s ad delivery can lead to skewed outcomes revealed how the Facebook algorithm could skew the delivery of ads for employment and housing opportunities “along gender and racial lines”, which violates antidiscrimination laws.

Predatory ads

Predatory programmatic advertising refers to the unethical or illegal use of automated ad buying and placement techniques to exploit vulnerabilities in individuals. For instance weight-loss ads which target young users, and cosmetic procedures which target women.

Filter bubbles

Every day, the content we see and engage with online is increasingly personalised to our interests, preferences and demographic information. Google for instance is excellent in customising our search results based on our location information or past search history. Facebook does the same thing for our News Feed, by analysing which posts, friends, and pages we interact with the most to boost content they believe we will likely engage with. An example of content personalisation and targeted advertising taken to the extreme is the Cambridge Analytica (CA) scandal where millions of US-based voters were targeted for disinformation campaigns and, to some extent, to influence the outcome of the 2016 US election.

When the Ad Becomes the Story

Ads now blur into content itself.

Social Media Influencers or Key Opinion Leaders

Indeed the rise of content creation by social media influencers (SMIs) has transformed brand marketing. Influencers who generate attractive content and who are themselves attractive, are highly sought after by brands for paid partnerships. In Malaysia, influencer marketing is particularly effective due to the country’s high social media usage (nearly 90 per cent of the total population of 31 million). According to an article by Bernama, 75 per cent of Malaysians make purchases based on influencer recommendations.

One of the key strengths of Malaysian influencers is their ability to engage authentically with their followers. According to an article by Statista, Malaysian consumers, especially younger audiences, prefer influencers who present relatable and genuine content. This evolving landscape is reshaping brand partnerships, urging companies to focus on authenticity and meaningful interactions to resonate with their target demographics.

The influencer advertising market in Malaysia is projected to grow by 10.79 percent (2024-2028) resulting in a market volume of USD102.30 million (RM431.8 million) in 2028.

Some social media influencers, while endorsing brands, also use their online platforms to promote good causes. Nandini Balakrishnan, a SAYS video producer, is known for promoting body positivity, while Deborah Henry (a Malaysian model, emcee and TV/podcast host) has been highlighting the plight of refugees for over 10 years. Through her influence, she co-founded Fugee.org, a non-profit that helps refugees living in Malaysia through education, advocacy and entrepreneurship.

Unfortunately, there are downsides to online influencers. A recent study by the University of Portsmouth examined the negative impacts some influencers have. The study found that some SMI’s endorse unhealthy or dangerous products such as diet pills, detox teas, and alcohol without full disclosure. Others spread misinformation, encourage unrealistic beauty standards, foster a comparison culture, promote deceptive consumption, and cause privacy risks.

The study found that the use of filtered and curated images by SMIs added to body dissatisfaction, low self-esteem and harmful beauty practices. It also found that influencer-driven content fuelled lifestyle envy and social anxiety, leading to negative self-comparison and diminished wellbeing.

Dr Georgia Buckle, Research Fellow in the School of Accounting, Economics and Finance at the University of Portsmouth, said: “Social media influencers hold immense power over consumer decisions and cultural norms. While they provide entertainment, inspiration, and brand engagement, the unchecked influence of some SMIs can lead to serious ethical and psychological consequences. Our study highlights the urgency for both academic and industry stakeholders to address these challenges proactively.”

According to a study done by Noémie Gelati and Jade Verplancke from Linköping University in Sweden, consumers identify and create links with influencers, driving them to follow influencers’ recommendations. This relationship impacts young consumers on a different level due to their immaturity and lack of understanding about marketing. The study noted that those around 19-24 years old are more prone to follow influencers “Indeed, (young) followers tend to purchase what the persons they idealise use or wear… Clothing, make-up and even cosmetic surgery, followers aspire to look like their favourite influencers and the beauty ideal they diffuse.”

Finally, influencers themselves are often under immense pressure to produce captivating content which strikes a delicate balance between authenticity and market appeal. This requires a lot of thought and special skill, often leading to stress and burnout. Additionally, the work requires them to maintain a certain public image, increasing the strain to their mental well-being.

Brand memes

Corporate memes are another powerful tool for brands looking to connect with younger demographics in a more casual and relatable way. According to Twitter, tweets with images receive 150 per cent more retweets than text-only posts, while meme content specifically tends to generate 60 per cent higher engagement rates compared to standard branded content.

Algorithms prioritise ‘engaging’ content

Social media algorithms use engagement, relevance, and user behaviour to determine which posts appear in our feeds. High engagement signals that content is valuable, increasing its visibility. While these systems are designed to enhance the user’s experience and engagement, they often unintentionally create an echo chamber. Users who follow unethical influencers can end up seeing more unethical or misleading content. Some algorithms can amplify extremist propaganda and polarising narratives. These amplifications can lead to societal divisions, promote disinformation, and bolster the influence of extremist groups. Often these types of content use emotionally provocative or controversial material and by focusing on metrics such as “likes” and “shares”, algorithms create feedback loops that take users down a rabbit hole.

AI: The Engine Behind the Curtain

AI is no longer just a backend efficiency tool — it is the central nervous system of modern advertising.

Machine learning determines which ad you see and when.
Reinforcement learning constantly tests variations to see what you click, skip, or share.
Generative AI personalises ad copy, images, and tone in real-time based on your digital behaviour.
Platforms use AI-driven predictive models to infer your mood, political leanings, spending habits — even when you’re most likely to be impulsive.
Instead of marketers carving out segments they think are best for an ad campaign, the AI discovers these optimal audiences automatically.

Through AI advertising tools like Performance Max within Google and Meta’s Advantage+, tech giants like Google, Meta and LinkedIn remove much of the detailed work involved to manually match a brand’s target persona. Instead of marketers carving out customer segments considered best for the campaign, the AI discovers these optimal audiences automatically and generates personalised ads with every click. So it isn’t just targeting. It’s automated persuasion at scale — invisible, relentless, and largely unregulated.

With nearly 3.4 billion people using Meta’s apps (Facebook, Instagram and WhatsApp) each day, the company has massive amounts of data on the human population.

According to MarketBeat, an Inc. 5000 financial media company, Meta’s Advantage+ Shopping saw rapid adoption out of the gate. In initial testing, the company said Advantage+ users were seeing a 32 per cent increase in return on advertising spend (ROAS) compared to its non-automated campaigns. In April 2023, nine months after its release, daily revenue from Advantage+ Shopping campaigns increased by 600 per cent in just six months.

By the third quarter of 2023, Advantage+ Shopping was generating USD10 billion (RM42.21 billion) in annual run-rate revenue and by the fourth quarter of 2024, Advantage+ Shopping campaign revenues scaled past USD20 billion (RM84.42 billion) in annual run-rate. They also grew 70 percent from Q4 2023.

Meanwhile, Google has seen a 93 per cent adoption rate of Performance Max among retailers running Google shopping ads.

Who Regulates the Algorithm?

There is yet no clear legal framework internationally, much less in Malaysia, to oversee how ads are targeted or how profiling works.

However, Alex C. Engler, a Fellow in Governance Studies at The Brookings Institution, says this does not mean regulators should sit idly by. Instead they should actively study algorithmic systems in their regulatory domain and evaluate them for compliance under existing legislation.

He notes that some regulatory agencies have started this work, including the U.S. Federal Trade Commission’s (FTC) Office of Technology and Consumer Financial Protection Bureau (CFPB), new algorithmic regulators in the Netherlands and Spain, and online platform regulators such as the UK’s Office of Communications (OFCOM) and the European Centre for Algorithmic Transparency.

Engler further suggests that as oversight agencies gather information about algorithmic systems, their societal impact, harms, and legal compliance, they should also develop a broad AI regulatory toolbox for evaluating algorithmic systems, particularly those with greater risk of harm.

This toolbox he says, should include means to expand algorithmic transparency requirements, perform algorithmic investigations and audits, develop regulatory AI sandboxes, and to welcome complaints and whistle-blowers.

Malaysia: Reclaiming Digital Autonomy

Although Malaysia has the Personal Data Protection Act (PDPA) 2021, the PDPA does not explicitly define any minimum standard for consent. It also does not regulate online privacy and has no provision on e-marketing, cookies or newer tracking and surveillance technology, such as geotagging. It also does not apply to personal data processed outside Malaysia. However, it is considered best practice for organisations operating in Malaysia to obtain informed consent from users for the use of cookies on websites, especially if they are collecting personal data. Companies that do not provide a cookie consent mechanism run the risk of non-compliance to the PDPA.

Fortunately, the Personal Data Protection Commissioner (PDPC) is considering issuing a data protection guideline that covers digital marketing.

The PDPC can learn from EU’s General Data Protection Regulation (GDPR) which regulates targeted advertising more stringently – mandating less intrusive advertising that uses less consumer data. It requires consumers to take positive action to provide consent, either by signing a form or clicking ‘I consent’ or ‘I agree’.” The GDPR defines consent as “being freely given, specific, informed, and unambiguous and given by a clear affirmative action”. Malaysia can definitely start by taking a leaf out of these EU guidelines.

By filling these gaps, Malaysia has an opportunity to lead the region by adopting clearer consent rules or stronger transparency standards.

Meanwhile, as consumers we should not be content to be sitting ducks. We need to understand and limit how we are profiled, and how much permission we surrender through our Apps and social media settings. We should proactively review and adjust our privacy settings to control who can view our posts, profile information, and activity.