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Utilizing Audience Segmentation

Digital marketing at a first glance is a broad industry; however, there are a multitude of audiences that can be reached through various efforts and specific targeting. With the rise of social media in recent decades and heightened e-commerce numbers following the peak of the pandemic, agencies who take advantage of their audience segmentation have become the leaders of the pack.   

How can you mark your place in the digital marketing industry right now?

Take a deep dive into enhanced marketing by utilizing demographic and more specifically, audience segmentation. Any small business or multi-national corporation who is looking to succeed in their respective fields must define who they’re directly targeting their products or services to.     
 

What is demographic segmentation?  

Marketers often divide their intended audiences by demographics, such as age, sex, race, ethnicity, religion, income, education, and marital status. Applying this method allows for a broader understanding into which groups your company may lean towards targeting, both now and in the future.  

 

What exactly is audience segmentation?

This is the stage where you’ll most likely begin to look at factors deeper than simply demographics. When dividing your target audience into smaller niches, you’ll often look into their psychographics, as well as their geographic information. This includes looking at their shopping habits, beliefs or attitudes toward certain products, companies, or ideas, and where they’re located. This is key information to build a proper targeted campaign posed for success. 

 

A real-life example of audience segmentation

One example of properly utilizing audience segmentation is marketing a new eco-friendly jacket to groups who value sustainable products and companies. Another example would be marketing a new hybrid vehicle to audiences living in the suburbs rather than urban areas, where anything and everything is within walking distance and in turn, less need for a vehicle.  

 

Utilizing age group segmentation

Which audiences are more likely to be reached by your digital marketing strategy based on their age range? Let’s break down the potential age groups:

 

Get to Know Gen Z (ages 10-25)  

  1. Gen Z has grown up in a completely digital world and are becoming the placeholders of all digital knowledge and upkeep. 
  2. Gen Z spends nearly eight hours online per day, searching social media or shopping with the ease of a few clicks.  
  3. Individuals between the ages of 18 and 45 hold the most influence on current consumer strategies due to their consistent online presence.  
  4. Gen Z is a highly eco-friendly generation who are often bringing their business and influence to companies that promote sustainability and earth-friendly options.   
 

Make Your Mark on Millenials (ages 26-41)

  1. Millennials are the leading digital consumer group, as of March 2020.
  2. Over one third of Millennials see digital mediums as essential for their day-to-day communications.
  3. Around one half of all Millennials read online reviews and search social media before purchasing from a brand.
  4. Millennials make up close to half the workforce.  
 

Create Marketing Experiences for Gen X  (ages 41-56) 

  1. Gen X’ers are often willing to pay more for a higher quality consumer experience.
  2. One third of gen X’ers resort to direct messaging through social media when reaching out to a brand. 
  3. Approximately 75 percent of all Gen X’ers utilize social media in some way and see it as an essential part of a brand’s outreach strategy.
  4. Gen X makes up 31 percent of the U.S.’s total income, which means this population holds great influence on family and company decisions and are financially smart.   
 

Make a Marketing Boom on Baby Boomers (ages 57-75)

  1. This generation is less inclined to follow trends and more inclined to simply resort to brands that fit their particular needs.
  2. Baby Boomers aren’t as tech savvy as their generational counterparts, but their social media usage has increased in recent years. 
  3. Approximately 70 percent of Baby Boomers who utilize social media gravitate toward YouTube and Facebook over any other platforms.  
  4. Less than 25 percent of Baby Boomers make purchases directly from social platforms, so companies must keep their websites up to date with easily accessible features. 
     

How to change your messaging and visuals based on your target age group:

Let’s look into an example of an ad that’s been customized to fit into each market of generations. This will be an advertisement for a newly released sneaker.

 

For Gen Z:

 

For Millennials:

 

For Gen X: 

 

For Baby Boomers:



Our final thoughts:

Marketing in the digital age puts your intended demographics well within reach, and audience segmentation helps divide your audience into sub-categories that allow you to offer even more personalized content. The benefits? You get to know who your most valuable customers are, and they become better connected with your brand! Before your next campaign, look at each of the generations we’ve discussed on a high level and determine which “who” fits your “why.”