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Segmentation Definition
Segmentation is the process of dividing a broad audience into smaller, more specific groups based on demographics, behaviors, interests, or purchase history. It allows advertisers to deliver personalized, relevant messages to each segment.
How Segmentation Works
- Audience data is collected via CRM, website analytics, or ad platforms.
- Groups are created based on attributes like age, location, or buying behavior.
- Ads and messaging are tailored to each segment.
- Campaigns are optimized for each group’s preferences and needs.
Example of Segmentation
A fitness brand creates separate campaigns for yoga enthusiasts and weightlifters based on purchase history and website browsing.
Why Segmentation Matters in Advertising
- Improves targeting precision and personalization
- Increases engagement and conversion rates
- Reduces wasted ad spend on irrelevant audiences
- Essential for audience-centric, data-driven marketing strategies