Maximise your marketing efforts by knowing how many people you should really be targeting.
Marketers are no strangers to the word ‘targeting’, but sometimes it takes a little trial and error before you know what works for your brand.
There are a number of tools and platforms that use detailed targeting to produce better results, affiliate marketing tools and social media platforms being two prime examples. There are a number of decisions that you will need to make when refining your targeting – whether or not you should target a narrow or broad audience is one of them.
Let’s take a closer look at the types of targeting available to you.
One of the core benefits of narrow targeting is being able to successfully reach an audience that will provide better conversion rates and higher revenue. When done correctly, a narrow approach to targeting will take fewer resources and produce better results. A narrow approach to targeting is also ideal for brands that don’t have large budgets and want a better ROI.
Narrow targeting also has some shortcomings though. For one, campaigns need to be highly accurate and require quick optimisation in order to be successful. This requires skill and experience to achieve. It will also be important to make sure that your targeting is as accurate as possible.
Lastly, narrow targeting tends to have a short life span, which means you will only be able to produce a high return for a short period of time. The larger an audience, the longer businesses can profit from it.
Naturally, the core benefit of wide targeting is that brands have the opportunity to generate a larger amount of leads, which means more profit. As mentioned above, by taking a wide approach to your targeting, you can benefit from the scheme a lot longer. Another benefit of wide targeting is that there tends to be less competition, which means more chances to generate higher profits without having to worry about competitors.
In terms of the downside of this approach, the need for a large budget is one of them. If you want to take a broad approach, make sure that you have a sizeable budget on hand too. Another potential downside of a wide approach is the ROI tends to be lower than a narrow approach.
Deciding Between a Narrow and Wide Approach to Targeting
Now that you have a better idea of the pros and cons of each approach, how should you decide on an approach?
To begin with, it’s important to look at what you are offering. In many cases, a smaller, narrower audience will result in more sales. Carving out a small audience within a niche and creating a campaign that delivers in every way can generate the best ROI over the short term. You also won’t need a massive budget to get it right but you will need to know what you are doing in terms of campaign creation and optimisation.
This is not to say that taking a broad approach won’t generate results but it will take longer and cost more. With that being said, a broad approach is ideal if you want a long-term approach that will allow you to learn more about your target audience.
If you are just starting out, you could even experiment with both approaches to discover what works the best – provided you have the budget that is. To help you make your decision, make sure that you have detailed information on your target audience and that you have created one or several personas – this will also give you a very good idea of which approach you should take.