Audience segmentation

Marketing Analytics for Business

Sarah DeAtley

Principal Data Scientist

Audience segmentation basics

 

group of multi-colored people icons

Audience segmentation: identifying groups within an audience to deliver tailored marketing

 

  • Marketers want to create relevant messages for segments
  • Making messages relevant is easier with smaller groups
  • Marketing Analysts identify the best way to group customers
Marketing Analytics for Business

Segmentation data types

  • Many different ways to segment audiences:
    • Demographics (age, geography, gender)
    • Psychographics (values, opinions, lifestyle)
    • Behavioral data (engages with ads, abandons shopping cart)
  • Segments can be very granular; check that marketers can reach a segment

Icons and descriptors of demographics, behaviors, interests, psychographics, and audience size

Marketing Analytics for Business

Cluster analysis

  • Sometimes need complex segments using a combination of many attributes

Cluster analysis: statistical model where data in a group (cluster) is more similar than data in other groups (clusters)

  • Automatically groups data, but analyst determines how many clusters are needed

  • Analysts can look for common themes in clusters (like business product affinity)

network graph visualization with various nodes

1 "20111214-NodeXL-Twitter-User jowyang network graph no jowyang edges" by Marc_Smith
Marketing Analytics for Business

Audience targeting

 

  • Marketers can scale segment definitions across channels and campaigns
  • DSPs and DMPs manage segment definitions
    • Enable retargeting and look-alike model tactics

 

bullhorn on left and multiple people on right

1 mohamed Hassan from Pixabay
Marketing Analytics for Business

Retargeting and look-alike modeling

 

Retargeting: target audiences based on behavioral segments

 

Look-alike models: target large audiences with similar characteristics to segments

 

Retargeting with people on top then cart then email icon. Look-alike modeling on bottom with people then  larger group of people

Marketing Analytics for Business

Let's practice!

Marketing Analytics for Business

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