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Audience Targeting in The Age of Micro-Segmentation

Bajor Lívia

Audience Targeting in The Age of Micro-Segmentation

We dare to hope that you not only know what audience targeting and segmentation are but you also exercise them to some extent. In a world where anybody with an online presence is exposed to over 5000 ads a day (!), it couldn’t be more clear why better targeting is indispensable. Oh, and did we mention that customers only engage with about 10 of these 5000 ads?

Audience targeting based on demographics (like age, gender, household income and geographical location) had its day, mostly before the age of Internet. Back then, in the era of TV, radio and newspapers, we weren’t flooded with information and broad reach was the focus, not segmentation or personalization. However, over the past decade or so, our ability to learn and understand what drives our customers has reached stellar heights. Instead of generalization and placing individuals in one broad bucket, with the help of CRM databases, we are now able to layer hundreds or even thousands of data points to identify and create several micro-segments and tailored content for them. All this sounds great, but what kind of segments are we talking about? According to Gartner, these are the most common:

  • Behavior - buying patterns and preferences
  • Benefits - functional or emotional benefits of the advertised product
  • Geodemographic - regional influences and sociological trends
  • Occasions - special occasions that influence purchases
  • Psychographic - lifestyles and attitudes

However, these segments are still large and diverse, therefore it is important to further differentiate to groups within these segments, adding more granularity to the mix, in order to satisfy consumers. If you are able to establish multiple sets of attributes, you will increase the quality of the audience, hence the members of it will be more likely to convert. What steps do you have to take to get here? CJ Media Source recommends these:

  • Know your data – demographics, media habits, lifestyle characteristics, shopping intent
  • Know your customers – who your customers are, what drives them, what needs of theirs are not satisfied
  • Know your options – social media platforms, printed advertisements, other online platforms
  • Know your effective reach – the right number of criteria to target narrow but not too narrow segments
  • Know how to optimize – what content, to whom, how, when, where

When you have a good understanding of all the above, you can start the never-ending optimization process of micro-segmentation that is about breaking down your broad target audience, based on certain criteria, in order to deliver the right content to the right people in the right place at the right time. This can be overwhelming but fear not, there’s help! Request Liferay’s free demo here and micro-segment like a pro!