Despite it being branded as the latest discovery on marketing, segmentation and demographic targeting have always had their place on Internet marketing. Traditional media outlets, such as newspapers and magazines, have always sold their ad inventory to advertisers that target their readership at premium prices. The ads on magazines on different verticals are often totally different, and targeted both at the content and the readers who will see them. Targeted advertisement produces better results both online and offline, requiring a smaller investment to achieve the same results. There are several reasons why a segmented marketing campaign is more efficient:
Reducing the amount of wasted impressions
An impression can be a page view on a website displaying your ad, or a reader checking out the magazine where you placed your advertisement. There's a limited number of them, and they will factor in the overall cost of the campaign whatever form they take: More impressions means higher costs. However, not all impressions are actually useful. Most products or services are already tailored to a specific segment of the audience. Marketing exclusively to that segment increases click-through rate, since the people who see the ad are already predisposed to like the product.
Instead of wasting time targeting people who aren't likely to buy the product or service being advertised, a good marketing campaign can focus on picking the lowest hanging fruit first and attracting the audience that needs less effort to convert. If yours ads aren't targeted you are reducing the ROI of that campaign by showing them to people who aren't interested in your product. For example, the response rates for a lipstick ad on a business advice website are likely to be quite low. Targeting your ads to particular audiences allows you to offer your products only to those who may be interested.
Improving message effectiveness
A campaign tailored to your audience will have better response rates because it can be designed to push all the triggers of that particular segment of the population. Segmenting your target audience allows you to create different ads for different audiences. You can create ads with which the audience can identify, such as using actors in the same age bracket to explain the benefits of a product to people of different ages.
It is also easier to highlight the benefits of the product that matter to specific audiences, and so increase the chances they can see it improving their lives. The same car can be advertised as a status symbol for young professionals, a great family car for women with children or a safe and secure car for those who appreciate reliability. Good marketers know that selling is about finding a solution to people's needs and how your product fits. Segmentation allows you to tailor your message to the different needs of different demographic groups.
Benefits of tailored marketing campaigns
Tailoring your campaign to closely match specific demographics interests and preferences also helps potential customers see only interesting or at least relevant ads, reducing ad blindness. Even if targeting your ads means more work in terms of design and analysis and probably higher per click prices, it also means an increase on sales and a higher ROI, so it's a worthwhile investment of your marketing money.