How to Use Audience Segmentation for Targeted TV Campaigns

Advertising is not one-size-fits-all. As the availability of data and advanced analytics increases, audience segmentation has become that much more important to the success of Total Video campaigns.

What Is Audience Segmentation?

Audience segmentation is the narrowing down of a broad target audience into smaller, more specific groups based on distinct characteristics. Building a DRTV or performance marketing campaign strategy around well-defined and thoroughly researched audience segments allows brands the opportunity to deliver more tailored messages that better resonate with consumers.

Audience segments can be based on various factors, including demographics, geographic location, behavioral patterns, interests, or psychographic attributes (such as values and lifestyles).

Why Audience Segmentation Matters in TV Advertising

When an advertiser’s main goal is to increase brand awareness, they want to reach as many people as possible. Brands with awareness-related KPIs may prioritize buying ad space during popular TV shows, day-parts or during widely-watched live events, hoping to get their message in front of a broad audience. 

However, some advertisers may have goals that are more directly related to direct response, viewer engagement, and conversion. In this case, that type of campaign strategy lacks precision, resulting in wasted ad spend on viewers who are unlikely to be interested in the advertised product or service.

Instead, by using audience segmentation, advertisers can create more relevant, personalized messages that cater to different groups’ specific needs, preferences, and behaviors within a broader audience. With customized ad creative, media placements can be secured on channels where the segment of people the spot was made for are expected to be watching. This way the campaign reaches the specific audience segment at the right time and can increase the likelihood of engagement and conversion.

Types of Audience Segmentation

There are several ways to segment an audience for TV campaigns, depending on the brand’s goals and what data is available. Here are some of the most common methods:

1. Demographic Segmentation

Demographic segmentation is one of the most traditional and widely used audience segmentation methods. It divides the audience by age, gender, income, education, and marital status. Demographic data is readily available from TV networks and data companies such as Nielsen, making it a convenient starting point for targeting specific segments.

For example, a luxury car brand may focus its TV campaign on high-income individuals aged 35-55, while a toy company might target parents with young children.

2. Geographic Segmentation

Geographic segmentation focuses on the audience’s location. It can target specific countries, regions, cities, or more granular areas like neighborhoods or zip codes. Geographic segmentation benefits businesses with location-based services like retailers, restaurants, or local service providers.

For instance, a regional grocery chain might run a TV campaign targeting viewers within a particular geographic area of its stores.

3. Behavioral Segmentation

Behavioral segmentation is based on audience behaviors and actions, such as viewing habits, purchase history, or engagement with specific content. This segmentation method is compelling in TV campaigns because it allows advertisers to target viewers interested in similar products or services to their own.

For example, a fitness brand might target viewers who regularly watch workout programs or health-related shows.

4. Psychographic Segmentation

Psychographic segmentation goes beyond demographics and behaviors to consider the audience’s attitudes, values, lifestyles, and personalities. This type of segmentation can help brands connect with viewers on a deeper emotional level by crafting messages that align with their core values and aspirations.

For instance, a brand promoting eco-friendly products might focus its TV campaign on environmentally conscious consumers who prioritize sustainability in their purchasing decisions.

How to Implement Audience Segmentation in TV Campaigns

Successfully implementing audience segmentation in TV campaigns requires a combination of data analysis, creative strategy, media planning expertise, and strong media relationships. DRTV and performance marketing agencies like Lockard & Wechsler Direct have the capabilities and experience to dive deep and build out thoroughly researched target segment personas. Here’s a high level overview of our process:  

1. Evaluate Target

The first step in audience segmentation is to clearly define the target audience. This involves determining the key characteristics of the audience you want to reach, whether it’s based on demographics, behaviors, interests, or values. The LWD Research and Insights team will then determine the size of opportunity through market segmentation and will create well-defined target audience personas.

2. Media Consumption

To create meaningful segments, you’ll need access to data that provides insights into your audience’s viewing habits, behaviors, and preferences. At LWD, we leverage a mix of first and third party data to build target audience profiles for our clients.

We gather and analyze the relationship each target persona has with the media in order to identify patterns and trends. This could include anything from what channels or platforms they use to when and how they watch content.

3. Competition

In addition to audience data, our team will thoroughly review the competitive landscape for each client. This includes analyzing competitors’ strategies, budgets, share of voice, campaign seasonality, and ad creative. By understanding how competitors allocate resources and approach the market, we identify opportunities to differentiate our clients, adjust their media spend, and capitalize on gaps in the marketplace. Leveraging these key findings allows us to craft tailored campaigns that enhance performance, maximize reach, and ensure our clients stand out in a crowded space.

4. Historical Analysis & Plan Development

Our agency has developed multiple proprietary programs to help with the audience segmentation and the media planning process. At this step, our team will utilize PlanPro™, our database of over 10 years of linear TV historical ad performance, CPMs, and responsiveness data, to inform our client’s media plans.  

With all the information collected, the account team will determine media strategies and tactics to implement, focusing on how to deliver on key KPIs and business objectives defined by the client.

5. Implement, Optimize & Refine

Then it’s time to put all this work to the test! Our buying team secures the media placements across Total Video (Linear, Streaming & Programmatic) leveraging our MediaPro®, DigiPro™, and IntelliTrade™ platforms and capabilities.

While the industry standard is for agencies to report on performance metrics monthly, LWD shared reports weekly or even daily to allow for in-flight adjustments. If specific segments or placements are underperforming, the messaging or targeting can then be optimized in real-time to improve results.

Continuous measurement and optimization ensure that the campaign will remain effective over time and maximize ROI.

Consumers are bombarded with advertising, so the brands that succeed will be those that can cut through the noise with tailored, meaningful messages that speak directly to their audience’s needs and preferences.

Audience segmentation is a powerful tool for creating more targeted, relevant, and effective TV campaigns. By breaking down your audience into smaller, more defined segments based on demographics, behaviors, and interests, you can deliver personalized messaging that resonates with viewers on a deeper level. As data and technology continue to evolve, the ability to leverage audience segmentation in TV advertising will only become more sophisticated, offering brands new opportunities to engage with their audiences.