Demographic data is a powerful tool for marketers to use. Whether looking at advertising campaigns in Facebook, Google or LinkedIn, demographics play a vital role in defining an advertiser’s audience. Let’s take a look at three ways businesses can use demographic data in their marketing strategies.
If you sell a premium product, you likely only want to market your product or service to the people who can afford it. For this reason, it’s recommended to use household income in your marketing and advertising. Household income is collected by large companies like Google and Facebook based on user-submitted data. For example, if you indicate your career or title on Facebook, the company can use that data to estimate a person’s income and establish a benchmark for household income.
To use household income in advertising for premium products, you would want to select the top 10% or 20% of income earners. This will help you target your ads to the right income earners who are most likely to purchase your product or hire you for a service.
The perfect use-case for this is for a luxury real estate agent in Chicago. Because this type agent only sells million-dollar condos in Chicago, it’s important for them to cater their advertising to people with the right budget.
Age is another important demographic factor. Using age will help advertisers tailor their message and ad creative to the right audience. If you deal with goods and services that are more applicable to a certain age group, this data point will be especially valuable to you.
If you operate a 55 and older community like Starhaven Villas, you likely only want to show your ads on Facebook or Google to people who fit this age bracket. Anyone who is less than this age would not qualify to live in the community and would likely not interact with the ad.
Possibly one of the most important statistics to use is a person’s location. If you advertise outside of your service area or where you sell products, you can expect your customers to have a negative experience. With tools like Facebook and Google, advertisers can show ads to specific cities, regional areas, zip codes or states as a whole.
A business that provides HOA election inspection in California would only want to target cities or counties in California. Showing ads to people in other states that don’t have to abide by California’s HOA inspection laws wouldn’t be applicable for this type of business.
To get started with demographics, you’ll first want to look at your Google Analytics data to understand who your existing customer is. Google Analytics will provide stats for household income, age, gender, interests and locations. Using this data will give you a great starting point to reshaping ads in Facebook and Google for the right audience. You create advertising your customers will like and with more dialed in settings, you’ll save money for your brand too.