Why Is Audience Segmentation Important When Using Programmatic Advertising?

Image2Audience segmentation allows you to divide buyers according to certain criteria for a more accurate product offer and, accordingly, increase sales. There are several effective methods of segmentation: 5 W’s, Hunt’s Ladder, or the classic method based on identifying geographic, demographic, psychographic, and social characteristics. You will learn what audience segmentation is and how important it is when using self-serve DSP in this article.

What Is Audience Segmentation?

Audience segmentation is the process of dividing audiences into groups with similar characteristics and needs. Factors such as gender, age, location, and others can be used to group them into specific segments.

Benefits for business:

  1. Increasing the level of loyalty. According to statistics, 80% of consumers are interested in making purchases when a brand offers a personalized experience. This is achievable only if there is clear segmentation and identification of the basic needs and interests of the audience.
  2. Selecting platforms for presence. By choosing your target audience, you can immediately determine which channels it is best to promote your product. Keep in mind that the same content on different platforms will be read by different segments of your target audience.
  3. Saving advertising budget. Knowing the needs of your audience allows you to create targeted offers that attract the attention of specific users. This helps to avoid unnecessary spending.

Developing an effective content plan and defining a communication style that resonates with each group, which in turn helps create content that can resonate and maximize interest in the product.

Sources of Information For Audience Segmentation

To develop an effective marketing strategy and sufficiently understand the needs of the target audience, it is necessary to collect additional information from its representatives.

Such data can be obtained from several sources:

● Conducting surveys and questionnaires. Develop detailed surveys and questionnaires that will provide information about the preferences, needs, and opinions of the target audience. Formulate questions related to interests, perception of your brand, and attitude towards competitors. This encourages clear answers and assessments regarding your products or services.

● Creation of focus groups. Organize focus groups where representatives of the target audience will have the opportunity to express their points of view, exchange opinions, and share impressions. In this format, you can not only identify the emotions and reactions of your audience to products and services but also ask additional questions and discuss important points in your business.


● Social network analysis. Conduct an analysis of the engagement of your target audience on social networks by studying discussions, reviews, comments, and shares related to your brand or business area. This will show your customers’ current preferences and sentiments towards products and services.

● Establishing direct contact. Communication through personal meetings, phone calls, or e-mails will allow you to more deeply understand the capabilities of the products or services being used, as well as receive constructive feedback. Direct contact can help you identify weak points and improve product quality.

● Audience segmentation in marketing relies on additional information about the target audience. The insights you receive will allow you to work more efficiently with programmatic advertising through self-serve DSPs.

Audience Segmentation Methods

There are several basic methods of audience segmentation that have already shown their effectiveness.

Classic Method

Usually, segmentation is carried out based on one or more parameters. Audience segmentation criteria are based on four key principles:

● Demographic. It focuses on characteristics such as gender, age, and marital status. These criteria make it possible not only to determine age groups but also to predict the level of purchasing activity. For example, a teenage target audience may be more prone to impulse purchases.

● Socio-economic. This parameter includes education, career, income level, and social status. This data helps determine the financial solvency of the audience and tailor marketing strategies according to their economic situation.

● Geographical. This parameter focuses on the regional characteristics where the target audience lives. Place of residence influences the needs of people and the conditions for the delivery of products or services in a particular city or region.

● Psychographic. This parameter analyzes the psychotypes, hobbies, lifestyle, and life values of the audience. This data includes entertainment preferences, travel frequency, and other aspects of personal life. Collecting such information requires additional work, but it allows you to create a deeper and more accurate portrait of your target audience.

5W’s Segmentation Method

It is a universal approach based on answers to 5 key questions. It simply and effectively allows you to select several groups with which you can work in more detail.

● What (What are you selling?)

● Who (Who will buy?)

● Why (Why will they buy?)

● When (When will they buy?)

● Where (Where will they buy?)

This technique helps you better understand your target audience and develop an effective strategy for promoting products and services based on the specific characteristics of the product and the needs of potential customers.

Ben Hunt’s Ladder

Marketer Ben Hunt described the unique journey that a customer takes from ignorance to completion of purchase, broken down into five main steps.

Stage 1. No problem. The target audience at this stage may not yet realize the need for the product. However, as a result of talking with friends, watching television, and reading articles, they realize that in fact there is an unsolved problem.


Stage 2. There is a problem but no solution. At this stage, the client realizes that there is a problem, but he does not yet know specific ways to solve it. However, he is ready to buy a product or service that will help him get rid of the inconvenience.

Stage 3. Comparison of solutions. The client begins to look for options and compare ways to eliminate inconveniences. At this stage, the analysis of methods for solving the problem, and not specific products, is carried out.

Stage 4. Choice. At this stage, the client has already decided on the choice of resolving the problem, but he still faces the task of which company is best to contact. He studies various offers and reads reviews.

Step 5. Concluding a deal.

According to Hunt, this principle applies to all types of purchases, from purchasing a new T-shirt to investing in wholesale real estate.


Target audience segmentation is an effective tool that not only allows you to create a personalized approach to customers but also helps increase conversion and increase profits. Use audience segmentation techniques to set the right settings when using self-serve DSPs. We recommend paying attention to the company SmartyAds, which provides effective programmatic solutions for launching advertising.