Explaining Audience Segmentation

Audience segmentation is a hot area, but the truth is that the mere mention of it will cause most CEOs and CMOs to start checking their BlackBerrys. Here’s three key points to communicate what it is and why it matters.

  • Audience segmentation takes in real-time data on existing consumer information, then separates consumers into groups so that ads bought and targeted to them have better ROI. More basic translation: It’s separating the wheat from the chaff.
  • Audience segmentation allows companies to measure consumers’ reactions to ad campaigns within the context of their lifestyles and sentiments and provides structure for new targeted campaigns. More basic translation: It makes your ads more targeted.
  • Audience segmentation tools are often integrated within demand-side platforms that target ads to specific audiences. This helps streamline campaigns, hone strategy and save money. More basic translation: less wasted ad buys.

Still not getting through? G. Michael Maddock and Louis Viton’s article in BusinessWeek is a great follow-up.

https://digiday.com/?p=3522

More in Media

Podcast companies turn to live events to capture growing advertiser spend

The surge in the number of live podcast events in 2025 reflects a broader shift: advertisers are betting bigger on podcasts — not just as an audio channel but as a full-fledged creator economy play.

Media Briefing: ‘Cloudflare is locking the door’: Publishers celebrate victory against AI bot crawlers 

After years of miserably watching their content get ransacked for free by millions of unidentified AI bot crawlers, publishers were finally thrown a viable lifeline. 

How Vogue could navigate potential industry headwinds as Anna Wintour — who agency execs say made ad dollars flow — brings on new edit lead

Anna Wintour’s successor at Vogue will have to overcome the myriad of challenges facing fashion media and the digital publishing ecosystem.