Social media advertising targets potential customers through data-driven techniques, leveraging user demographics, interests, and behaviors. Platforms like Facebook and Instagram utilize algorithms to analyze user data and create detailed target audiences. Advertisers can design campaigns aimed at specific segments, optimizing reach and engagement. Strategies involve retargeting users who have previously interacted with a brand, thus increasing the likelihood of conversion. By continuously tracking ad performance, marketers can adjust their approach in real time, ensuring that advertising budgets are effectively utilized and campaigns yield better results.