audience segmentation sr

Audience SegmentationIncreasing Relevance and

Opportunity

BOLO 2011

2

Myriad Segmentation Methodologies

•Most Common

•Where Target Resides

Geographic

• Channel by Which Segment is Reached

Distribution

•Based on audience’s media consumption habits

•Dominate a medium the audience is likely to use

Media

•Variation in wealth and income create opportunity

•Continuum of product price offerings, low to high

Price

•Gender, age, income, education, gender

Demographic

•Seasonal segmentation

•In conjunction with events

Time

•Lifestyle segmentation – attitudes, values, behaviors, emotions

•Needs based segmenation

Psychographic

3

Different Methodologies Serve Different Purposes

Demographic

Media Choices

Price Points

Partnerships

Psychographic

Ad Message

Positioning

Product

4

Health Audiences and Republic Media

Five Simmons Health Segments

Health and Well-Being

The Invincibles

Weight Reformers

Trusting Patients

Healthy Holistics

Image Shapers

Source: Experian Simmons 2010

“I eat what I want.”

The Invincibles

Unconcerned about Health

Non-Preventative

Least Health Active

Younger and Busy

• Fast food fans• Don’t believe

they have the time to focus on health

• Almost never get sick

• Use OTC meds to solve problems

Republic Media Course of Action: IGNORE

Best Media: n/a

Source: Experian Simmons 2010

“I’m constantly struggling with weight fluctuations.”

Weight Reformers

Constantly Trying to Lose

Weight

Struggle to Break

Unhealthy Food Habits

Try Different Diets

Seek and Rely on Health

Information

• Active Health Manager

• Seek out information to exercise more

• Try to use preventative approaches

• Want an easy and effective way to improve

Republic Media course of action: PURSUE SELECTIVELY

Best Media: Newspaper, Magazine, Online

Source: Experian Simmons 2010

“I rely on my doctors health advice and believe in follow-through at home.”

Trusting Patients

Trust Doctors

Healthy Eaters

Health Information

Seekers

Eco-Friendly

• Active Health Manager

• Tend to be older • Good patients• Believe in pills

and medications: supplements/OTC/Rx

• Use Preventative Approaches

• Buy fresh, natural ingredients

Republic Media course of action: PURSUE

Best Media: Newspaper, Magazine, Online

Source: Experian Simmons 2010

“A preventive approach is essential – this includes exercise and eating right.”

Healthy Holistics

Trust Homeopathic

Remedies

Eco-Friendly

Informed

Exercise Regularly and

Frequently

• Active Health Manager

• Influencers• Like to cook• Healthy Eaters• Green – believe

in organic, natural food

• Committed to making the right healthy choices when shopping or eating

Republic Media course of action: PURSUE

Best Media: Newspaper, Magazine, Online, Mobile

Source: Experian Simmons 2010

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LifeStage Segmentation Example

Opportunity exists among wealthier, younger Lifestage groups.

F1 A

ccum

ualte

d W

ealth

F2 Y

oung

Acc

umul

ator

s

F3 M

ains

tream

Fam

ilies

F4 S

usta

inin

g Fa

mili

es

M1 Affl

uent

Em

pty

Nests

M2 Con

serv

ativ

e Cla

ssics

M3 Cau

tious

Cou

ples

M4 Su

stai

ning

Sen

iors

Y1 M

idlif

e Su

cces

s

Y2 Y

oung

Ach

ieve

rs

Y3 S

trivi

ng S

ingl

es0%

5%

10%

15%

20%

25%

30%

35%

0

50

100

150

200

250

25

100

78

9

52

202

113

28

171

68

111

Phoenix Survey Total Bedmart Index

Source: Republic Media proprietary database.

= maintain

= grow

Wealthy Lifestage groups were more likely to spend $ purchasing mattresses.

Wealthy Middle Class0

20

40

60

80

100

120

140125

94

124

89

$500 +$1,000 +

Wealthy: Y1, F1 and M1 LIfeStages.Middle Class: F2, F3, M2, M3 LifeStages.

Q: Amount spent on mattress past 12 months.

Source: Phoenix Scarborough (Feb 2009 – Jan 2010)

F1: Wealthiest Family Lifestage

group Imagery consistent

with lifestyle

Feature higher end product

Appeal to needs of female decision maker:– Hypo-allergenic– Anti-microbial– Quality of product

M1: Wealthiest Mature Lifestage

group Active empty nest

imagery

Product focus on health and comfort

Scoria product features:– Back support– Cool latex– Quality

Y2: Younger Years Young Achievers

Affordable Aspiration

Quality Value Product

Appeals to female consumer:– Building a life

together– Work and reward– Recognizable

brand

Results

Over 120,000 pieces mailed in first wave

Sales returns were 6x the campaign investment

The creative strategy appeared effective, with wealthier LifeStage groups (Y1 and M1) delivering average sales ticket values that were nearly double store averages

Younger income segments saw average tickets that were 30% higher than typical rings

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Other Segmentation Examples: Museum Audiences

Needs Based Segmentation Example: Museum Visitors

Identity and the Museum Visitor Experience by John H. Falk

Focus– Personal identity– Personal context– Socio-cultural context– Past museum visitation

Segments visitors by the needs satisfied

Leader in museum research, Sea Grant Professor of Free-Choice Learning, Oregon State University

Identity-Related Visitor Model

Museum Visitors

Explorer

Facilitator

RechargerExperience Seeker

Professional /Hobbyist

Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

“It’s a brain vacation.”

EXPLORER

Confirms Self Identity

Curious About Topic

Learning is Fun

See and Do Things

Others Don’t

• Values learning, but may not be well-educated

• Attracted by new exhibits

• Reads newspapers, watches news programs, edu-TV

• Strike balance – high brow, low brow

Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

“Billy loves art. That’s why I come.”

FACILITATOR

Satisfies Needs of Others

Parental

I Bring You Because I

Care About You

Social

• Facilitating Socializer: I am a good friend.

• Great place to meet others, socialize

• Membership affords access to what museum affords socially

• Don’t discern between learning and fun

Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

• Facilitating Parent: I am a good parent.

• Frame visit in time context. The facilitator is in control.

• Parents pragmatic about membership costs.

• Imagery: people doing fun things, parents/kids engaged

“This is a one-of-a-kind experience.”

EXPERIENCE SEEKER

Collect an Experience

See the Destination

What’s Iconic

Been There Done That

Check

Expectations of Others -Social

Motivations

• What destination is known for is more important than display.

• Idea of being in culturally important place.

• Learning not priority, but experience affords it.

• Tourists, weekend fun

• Driven by opinions of others – “…said we had to take the kids here.”

Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

“I enjoy the tranquility of this place.”

RECHARGER

Reflect Rejuvenate

Reverence for Subject

Matter

Bask in Wonder of

Place

Break From Life

• Escape clutter of outside world.

• Experience should be effortless

• Sensual aesthetic across lives – good food, drink, travel, music, art, literature

• Imagery: beautiful, deserted spaces

• “A place to be surrounded by art.”Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

“I look for ideas for work.”

PROFESSIONAL /HOBBYIST

Strong Tie to Content

Narrow Purpose of

Visit

Not a Social Motivation

Insiders, Mirror

Museum Worker

• Smallest category, disproportionately influential

• Subject curators concerned with accuracy

• Judgmental; how info is conveyed to non-subject experts

Source: Identity and the Museum Visitor Experience, John H. Falk; 2009

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Contact For Assistance Segmenting Your Audiences

Sean Rogers– Senior Client Strategy Manager– Republic Media/Gannett– srogers@republicmedia.com– Twitter: @SeanPRogers