Audience segmentation is the process of grouping people based on shared characteristics. Audience segmentation is all about making the information world more customized and achieving your business goals at the same time. Audience segmentation is a process of dividing people into unique subgroups based on criterion such as demographics, product usage, communication behavior, media use and psychographics. Audience segmentation is about finding your ideal clients and choosing the right way of interaction with them. In marketing, Social Segmentation may be determined by wealth, location, education, age and sex.
Audience segmentation targets the right market and audience at the right time. James E. Grunig proposed a model of audience segmentation comprising a series of inner and outer nests. The outer nests consist of communities, psychographics, lifestyles and subcultures, and social relationships, geodemographics, demography, social categories and mass audience.
Audience Segmentation can also drive smarter product development and decisions are made safer. Audience Segmentation is all about understanding the audience. With Audience Segmentation, messaging can be targeted to specific audiences, by understanding target market’s psychology and behaviors. Audience segmentation is based on the assumption that different groups of audience have different characteristics that influence the extent to which they pay attention to, understand and act on different messages.
Audience segmentation makes it easier to uncover optimization opportunities that you might not see when looking at aggregate data. The core benefit of audience segmentation is being able to assess the current value and potential value of all audience.
Audience Segmentation enables a brand to focus its efforts. With Audience Segmentation greater attention can be paid to data-driven decisions impacting productivity and profitability. Audience Segmentation can aid in identifying new market opportunities identify areas that are offer expansion.
Audience segmentation is used by advertisers to design and tailor products and services that satisfy the targeted groups. Audience segmentation can cause conflicts within the community as in the case of STD/HIV Management Project in Nigeria in 1999 where non-targeted community members felt resources had been unfairly allocated to the "unworthy" audience segment. Audience segmentation is used to efficiently utilize limited resources to reach the intended population particularly in health interventions.
Ethical questions arise when health communicators identify audience segments and plan health interventions for these groups, depriving in the process, those not targeted. Audience segmentation is accepted as a strategy in communication campaigns to influence health and social change.
Audience Segmentation reporting of Bing ads gives advertisers detailed insights about how their search audiences are performing. Audience segmentation using demographic traits helps to identify target customer. Selling a product for a higher price creates the perceived value for an affluent audience segment. Selling at lower prices provides the benefit a budget-conscious audience segment demands.