Sometimes advertisements can be scarily accurate. I’ve had countless conversations about whether or not our phones’ microphones are constantly listening to what we say because ads can feel almost invasive. I once received an ad for a t-shirt that said “It’s a Branton thing” illustrated in a retro design. How does this company know my last name, and who made that design?!  What could be even more alarming is that the microphones aren’t on; it’s our data that gives us away.

In The Marketing Campaign Playbook by Sharon Lee Thony, segmentation is described as a strategy that helps brands connect with the right consumers by “dividing your broad target audience into smaller groups based on characteristics like age, gender, location, income, interests, or behavior.” This allows brands to tailor their messaging and strategies to resonate more effectively with each group. Instead of using a one-size-fits-all approach, segmentation enables brands to create personalized, relevant experiences that meet the unique preferences of different consumers, leading to stronger connections, better engagement, and higher conversion rates. It ultimately helps brands focus their resources on the most promising audiences.

Beetles Gel Polish, an affordable DIY option for at-home manicures, has unlocked the power of audience segmentation. Askpot shares that Beetles Gel Polish strives to “provide high-quality, affordable nail products that allow users to achieve professional-looking manicures at home.”

Their audience’s characteristics likely align with the list below:

Demographics: Predominantly females aged 15 to 65

Behaviors: The audience is involved in DIY and affordable beauty forums. They likely shop online and follow nail trends.  

Interests: Personal style, beauty, crafting, DIY activities, affordable self care/luxury, cruelty-free products

Location: Global

How Beetles Uses Custom Audiences 

Custom audiences allow brands to leverage specific customer data to target users who have already interacted with their business, increasing the likelihood of conversions. By measuring specific data sets, brands can create highly targeted ads for these audiences based on their previous actions.

Here’s how Beetles uses custom audiences:

Website Visits: Beetles can track users who visit their website and create a custom audience of individuals who have shown interest in specific products or pages. This helps retarget these individuals with ads for the exact products they viewed, reminding them of what they were interested in and nudging them toward completing an action.

Past Purchases: Beetles can use purchased data to create custom audiences of people who have bought from them in the past. This can be used to target them with special offers, repeat purchase discounts, or loyalty programs. This encourages repeat business and increases the likelihood of lifetime customers.

Social Media Interactions: Beetles can also target users who have engaged with their social media content. These users are already familiar with the brand, so showing them relevant ads or special offers can drive conversions by leveraging their existing interest.

Retargeting and Increasing Conversions:

Custom audiences are particularly powerful for retargeting, which is where brands reach out to people who have interacted with the brand but haven’t completed a desired action, like making a purchase or subscribing to emails. By directing targeted ads to these users, brands can remind them of their intent and encourage them to take the next step.

The personalization and relevance of custom audiences drive higher engagement and conversions because the ads are tailored to the consumer’s behavior, creating a more compelling and timely message. The process also improves efficiency by focusing on users who are already familiar with the brand. This reduces wasted ad spend and increases the likelihood of a conversion.

Lookalike Audiences Help to Expand Beetles’ Reach

Lookalike Audiences are a powerful tool for brands looking to expand their reach by finding new customers who share similar characteristics with their existing customers. The concept behind lookalike audiences is to use data from a brand’s best-performing customers as a model to find new, similar individuals who are more likely to engage with the brand and convert into customers.

How Beetles Creates a Lookalike Audience:

To create a lookalike audience, Beetles starts with a group of existing customers or people who have engaged with them in a meaningful way .Platforms such as Facebook, Instagram, or Google then analyze this audience and identify common traits or behaviors that can be used to find new people who resemble them.

Here’s how it works:

Select a Source Audience: Beetles chooses an audience that represents its most valuable customers, such as people who have made a purchase, signed up for a loyalty program, or engaged with the brand frequently.

Match Characteristics: Platforms then use machine learning to analyze the behaviors, interests, demographics, and other data points of this source audience and find new users who show similar patterns.

Target the Lookalike Audience: Once the lookalike audience is created, the brand can serve targeted ads to this new group, offering products or services that are highly relevant to their interests and behaviors.

Characteristics of a Strong Source Audience:

A strong source audience is critical for the success of Beetles’ lookalike audiences because it directly impacts how accurately the platform can find new, high-potential customers. Here are some key traits of a strong source audience:

High-Value Customers: The best source audience includes your most valuable customers. Those who have made repeat purchases, spent a lot, or are highly engaged are the ones to focus on. These users are more likely to attract people who will act similarly and generate long-term value for the brand.

Engaged Users: Individuals who interact with Beetles regularly are a great source audience. Their consistent interaction signals an active interest that can be mimicked in a lookalike audience.

Recent Purchasers or Sign-ups: Customers who have recently made a purchase or signed up for notifications are ideal because they have demonstrated recent intent to buy, which helps to identify people who are currently in a similar buying mindset.

Highly Engaged with Specific Products: Targeting users who have engaged with or purchased other nail products can be a powerful source. The lookalike audience created from this will be more likely to respond to similar offerings.

High Conversion Rate Groups: If certain segments of an audience consistently convert, these groups are also excellent sources for lookalike audiences.

Benefits of Lookalike Audiences:

Reach New Customers Efficiently: By targeting individuals who are likely to behave like Beetles’ best existing customers, there’s an increased chance of finding high-quality leads who will be more responsive to messaging and more likely to convert.

Improved ROI on Ad Spend: Since lookalike audiences focus on individuals who are more likely to engage and convert, brands often see a higher return on investment (ROI) for their ad campaigns. Ads are shown to a more targeted audience, reducing wasted ad spend.

Scaling with Precision: Lookalike audiences enable brands to scale their marketing efforts by finding similar audiences across larger networks. You can cast a wider net without sacrificing the precision of targeting, which helps Beetles expand without losing touch with its core audience.

By creating lookalike audiences from a strong source of engaged, high-value customers, Beetles can effectively expand its reach, find new customers, and drive conversions in a highly efficient and data-driven way.

Covergirl’s Take on Audience Segmentation

To drive home just how impactful audience segmentation can be, Covergirl provides a prime example of the power of age segmentation.

In this first ad, older women are targeted through the use of a seasoned Covergirl model who demonstrates how to correctly use the product. This shows the viewer that the product can work for anyone and no special off-screen measures are necessary.

This next ad targets a younger age demographic by implementing a weather forecast themed campaign.The higher production of this ad keeps a younger audience’s attention and encourages them to try the product due to the clever delivery.