You have a cool idea for a product, but don't know how best to market it? Then it is important to first define which people you want to address with your product. From experience, it's helpful for advertisers to create a fictional character that is representative of a customer group. This gives you a point of reference for all your marketing activities. The best way to do this is to use the checklist that we give you in this post!
Step by Step: Define target group
- Marital status
- Household size
- Education level
- Price sensitivity
- Purchase range
- Media usage
Try to describe the person in as much detail as possible in order to develop a deeper understanding of the needs and desires of your potential customers. Always keep your product in mind to describe the person in detail, but not too extensively. For example, if you're selling a cookbook, it's not relevant to "Maik" who likes to listen to music. However, if you're selling headphones, the information is important for understanding Maik's wants and needs.
How do I reach my target group?
In the digital world, there are various channels you can use to communicate with your target group. A basic distinction is made between the following marketing channels:
- Banner or display advertising: one of the most classic forms of digital advertising are display ads. Simple banners are usually displayed on websites with a high number of unique users in order to increase awareness of your brand through branding. Although you also reach your target group, you have to accept a certain scattering loss. So whether you should run display ads depends on how broad your target group is.
- Native Ads: Compared to Banner Ads, Native Ads have a performance background. Due to their design, they are close to the editorial content to show even better CTRs. Often the CPC model is used (Cost per Click). With this model, advertisers only pay when a user is interested in the ad. The whole thing is made possible by complex machine learning processes (linking) that identify websites whose users overlap with your target group.
- Email marketing: Since newsletters exist for every target group, they are an excellent way to communicate with potential customers, usually achieving very good CTR and ROI rates.
- Social media: Approximately 43 million people in Germany use social media. Facebook, Instagram, LinkedIn and Co. are among the most visited sites on the internet worldwide, which brings potential for advertisers. The basis for ads on social media should always be a well-maintained organic presence on the respective platform, so that an interested user has a high dwell time on your environment.
Targeting plays a big role in order to target advertisements without large scattering losses. If you have defined your target group, you already have the basis for any targeting. The technical basis for this are cookies, which advertisers can use to find out useful information about the surfing behaviour of users on the Internet. This information is then used to determine the age, gender and interests of a user, allowing your ads to be placed where users from your target group are. This is no guarantee that you will reach customers who are interested in buying, but in any case you will distribute your budget more effectively.
But what is the best way to communicate with your target group?
You can probably reach your target group in any way. The question, however, is how much wastage you can accept. Advertisers usually reach most people who are interested in buying with native ads on a CPC basis. After all, just targeting the audience doesn't guarantee advertisers that this group will be interested in the product. The click that shows a user's interest in the product is the basis for billing with native ads. This distributes the media budget in the most effective way.