Option 2, for sure. Remember Bill Clinton's slogan during his 1992 campaign: "It's the economy, stupid." People vote with their wallets first. The recession at the time lost Bush the presidency.
The lousy job market cost Hillary the presidency too.
Trump is a protest candidate. His supporters are not knuckle-dragging troglodytes who crawled to the voting booth, drooled on the voting machine, and grunted "make America great again!". They are rational beings, who looked back at Obama's presidency, and were not impressed.
Yes, employment improved during Obama's tenure, but new jobs have been low-paying and low-status. No bankers went to prison. The corporate-friendly policies of the Obama era didn't earn him friends in the working class. And Hillary promised more of the same.
Targeted advertising can prod racists to vote, as the OP suggests, but that only works if the non-racist voting majority feels some hope.