Telmar News & Insights

Segmentation Analysis: Top Five Questions to Ask

August 10, 2016

segmentation analysis

“Know thy audience” is practically a commandment for media buyers and planners. Fortunately, we are well past the days of carving out messages on stone tablets. Yet in the digital age, there are many different ways to message the target market. This makes segmentation analysis all the more crucial.

Innovation continues to drill down in terms of knowing attributes of different portions of the population making the audience segment ever more distinct. In the meantime, there remain some powerful questions to ask when determining how to approach audience segmentation.

The target audience segmentation is the group of customers at which the marketing and advertising efforts are aimed. Understanding audience segments makes a difference in media planning and buying decisions about distribution channels and strategies that will net the greatest return on investment (ROI). 

These questions can help drive deeper segmentation analysis.

1. What are the best audience segmentation tools for this analysis?

There are now many common methods to segment target markets:

  • Demographics covers age, gender, race, location, education, and more.
  • Psychographic parameters include customer interests, attitudes, values, and personality traits.
  • Geographic segmentation identifies market segments based on location and borders.
  • Product benefits can also be used to differentiate audience segments. E.g. car dealership messaging might address its luxury brand to those with desire for social status, on channels that appeal to those with higher incomes, while touting the roominess of a wagon to young families on channels during prime commuting time.

2. What are the audience segment’s needs?

Analyzing the available data, the media planner can gain more insight into audience behaviors. Based on a researched, nuanced understanding of the customers, the planner or buyer can better perform audience segmentation that takes into consideration consumer demand to determine strategic approach.

3. What do we want target audience segments to do?

Each audience segment will have different attributes, but you may also want audiences to act differently too. Customize communications accordingly and track campaign success for each segmentation to determine what strategies are working or need to be retooled.

4. How segmented should we go in our approach?

Segmenting campaigns to respond to particular target audiences demands attention to particular sub-targets’ wants and needs. This can be a more costly and time-consuming approach and may net a resulting segment that is too small to be valuable.

Carefully subdividing several mutually exclusive segments can also hurt messaging as what you say to one group could be confusing to another targeted segment if there is spillover across channels.

5. What is the dollar value of this segment?

When looking at multivariate analyses, the strategist can find answers to hundreds of questions. Yet it can be too easy to overlook the basics. For instance, a market segment may represent a large percentage of the population but only a small part of the market. Look at dollar potential as well as the number of people.

In segment analysis, the media planner and buyer need to ask the questions that help identify measurable, differentiable, actionable and substantial targets. Using segment analysis and powerful media targeting software, media planners are equipped with the ability to construct substantial plans without having to play a guessing game, After all, all this data analysis is only useful if the end result is targeted customers that can be actively reached, attracted, and serviced with the marketing mix.

Need help getting started? Telmar Audience Effects™ provides total audience targeting and planning.



Want to learn more? Check out our blog on the 4 Advantages of Audience Segmentation.