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Demographic Segmentation
Business leaders interested in improving the granularity of their marketing need to know about demographic segmentation.
It allows marketers to customize ads, website content, and campaigns based on customer and audience demographics, such as age, income level, job title, and gender.
At a high level, demographic segmentation is based on a simple fact: not everyone in your audience is the same, nor do they respond the same to one-size-fits-all messaging.
Knowing who to target can make all the difference in driving growth for a business.
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Demographic segmentation is a powerful tool for marketers to create tailored, impactful messages for their target audiences.
However, it's crucial to ensure using demographic data does not border on bias or perpetuate stereotypes.
While segmenting audiences based on factors such as age, gender, income, and ethnicity can enhance marketing efforts, marketers must remain sensitive to cultural and social nuances. They should avoid assuming or generalizing in ways that may alienate or offend certain segments of the population.
By striking a balance between employing demographic segmentation effectively and maintaining a respectful, inclusive approach, marketers can optimize their campaigns while fostering positive customer relationships and promoting brand values.
LinkedIn website demographics allows website owners and advertisers to better understand the professional characteristics of their website visitors.
- Step 1
- Step 2
- Step 3
- Step 4
- Step 5
Step 1 - Gather existing customer data
Marketers can gather existing data about their customers from various sources such as surveys or their website analytics tools of choice.
Advertising platforms, such as LinkedIn Ads, provide useful demographic data as well.
LinkedIn Ads offers a website tag for identifying demographic characteristics of website visitors, simplifying segment identification and targeted campaign creation.
Step 2 - Analyze and identify relevant segments
Analyze customer data against your business and marketing goals, such as conversions, conversion rate, and qualified leads.
One or more demographic characteristics likely stand out as performing higher or lower than average. This should form the basis of a marketer's use of segmentation in a campaign strategy.
Step 3 - Determine which demographic segments to use
After gathering data on the customer base or website visitors and identifying relevant demographic segments, marketers can prioritize the top segments to use in advertising and marketing campaigns.
It's helpful to revisit the broader business and product strategy. If, for instance, a company has many different products and one product line has been underperforming in relation to expectations.
It's helpful to incorporate other targeting criteria, such as behavioral data (purchase history, past interactions with the brand, website behavior, etc.)
All of this maximizes the chances that targeting subsections of an audience will be worth the time and additional investment in creative and resources.
Step 4 - Design campaigns based on these segments
At this stage, design strategy and creative, and set up demographic targeting using available tools and platforms.
This can include website personalization, content targeting, email segmentation, and advertising targeting.
Most advertising and email marketing platforms simplify audience targeting based on demographics. Although website personalization can be challenging, various web personalization software platforms support marketers.
Step 5 - Test, measure, iterate, and optimize
Testing is key to any marketing effort and segmentation should be no different.
There's always the possibility that targeting based on demographic makes no meaningful difference, in which case it's smart for marketers to dial back demographic targeting to reduce campaign management complexity.
It's important to track not only revenue and lead volume, but micro-conversions like click-through rate, engagement, and impressions. This gives marketers a holistic picture when compared against composition metrics like customer acquisition cost (CAC), return on ad spend (ROAS), and overall revenue driven across demographic segments.
If necessary, further refine segments or adjust ad targeting parameters to increase the efficiency of targeted campaigns, and never stop optimizing and improving them.
Website owners and marketers can gain a deeper understanding of their audience's job title, industry, company size, location, and seniority level.
The tool works by using LinkedIn's zero-party data to analyze the characteristics of the people who visit a particular website.
This data is then presented in a dashboard that displays various metrics and insights about the audience, including a breakdown of their job titles, industries, company sizes, and locations.
It also includes information on the seniority level of visitors, which can be particularly useful for B2B businesses looking to target decision-makers and influencers.
LinkedIn Website Demographics, in combination with any other website analytics tools in use at a company, will provide sufficient information to identify segments to use in campaign targeting.
Next, marketers can set parameters in their ads to target these segments on LinkedIn. LinkedIn Ads allows you to target ads and campaigns based on a wide range of demographic criteria, primarily focusing on job-related demographic dimensions such as job function, job title, company, company industry, job seniority, company size, location and country.
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