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Marketing without segmentation is a lot like shouting into a crowded room and hoping the right person hears you. Without a clear way to communicate in a noisy marketing environment, your message gets lost in the mix.
With segmentation, you can identify your target audience, speak to their needs, and deliver the right message at the right moment. Companies that use segmentation are 130% more likely to understand customer motivations, resulting in more effective campaigns and deeper audience relationships.
In this article, we’ll break down four of the most effective customer segmentation methods, when to use each, and how Experian’s audience solutions can help.
What is segmentation in marketing?
Segmentation is the process of splitting a large audience into smaller groups that share similar traits, like demographics, location, behavior, or firmographic characteristics. As a marketer, these segments enable you to choose channels, messaging, and offers that resonate with each group.
Whether you’re targeting new homeowners in Texas, loyalty shoppers in retail, or small business decision-makers in finance, segmentation helps you stand out to them and get results.
Why should marketers segment their audiences?
Effective audience segmentation fuels accuracy, performance, and personalization at scale. Here’s why you should invest your time and marketing budget in honing your audience segments.
Maximize your marketing ROI
Nobody wants to waste money talking to the wrong crowd. Using various methods of segmentation, you can focus on those who want to hear from you — and the payoff can be huge. For marketing channels like email, segmentation can drive up to 760% more revenue than non-segmented campaigns. The more targeted your message, the better the return.
Create a unified omnichannel strategy
Segmentation helps ensure that every channel, from email and social media to display, SMS, and direct mail, operates from the same playbook.
Once you define your target audience segments, you also need a trusted identity partner to sync them across platforms and environments. This ensures you can deliver consistent, personalized experiences at every touchpoint and your audience receives the same message in the proper context, regardless of where they engage.
Strengthen customer loyalty
Roughly 75% of consumers are loyal to brands that “get” them. When you strive to understand your customers, they’re more likely to stay. Segmentation enables you to personalize communications based on your target segment’s values, behaviors, or preferences, encouraging repeat business.
Expand into new markets
With segmentation, you can analyze existing customers to identify common traits and use that data to pinpoint similar groups in new regions or markets. For example, if your top customers are middle-class parents in suburban areas, you can target lookalike segments in other cities with tailored messaging.
This makes it easier to expand with confidence, knowing you’re reaching people who are more likely to convert.
Lower customer acquisition costs
Rather than forcing you to cast a wide net, segmentation enables you to focus your budget on high-potential audiences across channels, reduce acquisition costs, and minimize wasted spend on low-intent audiences.
Four segmentation methods and examples
Let’s look at four different methods of market segmentation. We’ll define each, share when to use them, and give real-world examples to help you apply them.
1. Demographic segmentation
Demographic segmentation breaks your audience into groups based on gender, income, age, education, marital status, occupation, and household size. It’s one of the most foundational segmentation methods because it’s easy to implement and often tied directly to buying behavior.
Demographic data makes it easier to get the tone, offer, and channel right from the start. And when you combine demographic segmentation with other segmentation methods, such as behavior or location, the impact multiplies.
When to use it
Use demographic segmentation when your product or service is clearly more relevant to people in a specific life stage, income bracket, or household type.
Among all methods of market segmentation, demographic data is often the easiest starting point. It’s especially effective for industries such as financial services, healthcare, education, retail, and others, where consumer needs change based on demographics.
Examples
As a real-world example, a health supplement company used Experian data to segment its ambassador program audience into four demographic groups based on lifestyle and household makeup. These included younger singles, value-seeking families, high-income spenders, and older empty nesters.
Applying these insights at registration allowed the brand to deliver personalized, channel-specific communications that boosted acquisition and retention. The approach led to stronger engagement and more meaningful customer connections.
2. Geographic segmentation
This method of market segmentation categorizes people by location, including country, region, state, city, zip code, or even climate. It’s a simple yet effective way to tailor your marketing, as location often influences everything from lifestyle and language to shopping habits and product needs. It’s most often used among brands with physical locations or region-specific campaigns.
Whether you’re promoting snow boots in Colorado or sunscreen in California, geographic segmentation helps you stay relevant to the local context.
When to use it
Geographic segmentation is ideal when your offer or message changes depending on climate, culture, availability, or local regulations. It’s also helpful for planning market expansion or testing the performance of different methods of market segmentation across regions.
Examples
One home furnishings retailer partnered with Experian to understand how customer needs varied across store locations. Using a mix of client data and Experian demographics, we segmented stores based on their surrounding customer base, like urban, white-collar shoppers in metro centers versus lower-income households in more remote cities.
These insights enabled the retailer to tailor inventory, marketing strategies, and ad copy for each store type, resulting in more relevant customer experiences.
3. Behavioral segmentation
Behavioral segmentation centers on how people live their lives — their interests, habits, and decision-making patterns. It includes factors like past purchases, engagement frequency, brand loyalty, product usage, browsing patterns, and responsiveness to offers or promotions.
Among all of the segmentation methods, this one provides insight into intent, helping you go beyond who your audience is to understand what they do. You can use behavioral insights to re-engage former customers with relevant offers, reward loyal buyers with personalized perks, or guide high-intent shoppers toward conversion with timely nudges.
When to use it
Behavioral segmentation is best when you want to personalize based on intent, habits, or engagement stage. It’s particularly useful for retention, reactivation, or cross-selling strategies.
Examples
In practice, a national big-box retailer partnered with Experian to better understand customer behavior during grocery store visits. The goal was to identify distinct “trip missions” that could drive category trial and increase basket size. We analyzed everything from basket contents to customer composition and segmented visits into 11 unique missions.
For example, the “All Aisles Online” segment represented large households (often homeowners with families) stocking up on household staples through online orders. In contrast, the “Marketable Mission” segment captured smaller, likely renter households making quick trips for non-essentials.
These behavioral insights empowered the retailer to adjust promotions based on the intent behind each visit, strengthen customer relationships, and drive growth.
4. Firmographic segmentation (B2B)
Firmographic segmentation is like demographic segmentation for businesses. It groups B2B audiences based on attributes such as annual revenue, location, company size, industry, and organizational structure. You can also segment by job title or decision-maker role to better target key stakeholders.
This method is great for aligning your messaging, sales strategy, or product offerings with the unique needs of various business types. A startup in the tech sector will likely respond to a very different pitch than an enterprise manufacturer, and firmographic data helps you speak to both with precision.
When to use it
Use firmographic segmentation when marketing to other businesses, especially when your product or service has different benefits depending on business size or sector.
Examples
Recently, a B2B client partnered with Experian to gain a deeper understanding of the revenue potential of their existing business customers. Using firmographic data, we segmented the client’s customers into distinct groups based on the characteristics most strongly tied to spending behavior.
For each segment, we calculated potential spend, defined as the 80th percentile of annual spend within that segment. This allowed the client to identify high-value accounts with untapped growth potential.
For example, one customer, ABC Construction, had spent $4,750. But based on their segment’s profile, their annual potential was $9,000. That insight revealed a $4,250 opportunity to deepen the relationship through more targeted marketing and sales efforts.
Best practices for market segmentation
Regardless of the segmentation method you use, the following best practices will help you maximize the benefits of your efforts.
Start with clean, reliable data
Segments are only as good as the data behind them. If your data is outdated, inaccurate, or incomplete, your segments will result in ineffective targeting and a wasted budget. Utilize accurate, compliant, up-to-date sources like Experian Marketing Data, ranked #1 in accuracy by Truthset, to ensure your targeting is on point.
Test and refine segments continuously
Business goals, market conditions, and behaviors are constantly changing. What worked last month or even last week might not work today. By adjusting your segments over time, you make sure your marketing stays relevant, focused, and effective. Use A/B testing, performance metrics, and audience analytics to iterate on your segments and improve results over time.
Align segments with personalized messaging and offers
Each segment has distinct needs, preferences, and motivations, which means generic messaging won’t resonate effectively. Once you’ve built your segments, personalize your creative, copy, and offers to appeal to each group and increase the likelihood of engagement and conversions.
Integrate segmentation across all platforms
If someone sees one message in an email and a completely different one in an ad or on your website, it creates confusion and weakens trust. From CRMs and email platforms to ad tech and analytics tools, make sure your segmentation method is applied consistently across every channel to improve performance and build a cohesive brand experience.
Segment your audiences with Experian
Effective audience segmentation is at the heart of every successful marketing strategy, but in this fragmented, privacy-conscious landscape, grouping your audience into meaningful, actionable subgroups is more challenging than ever. That’s where we come in.
With coverage of the entire U.S. population, Experian helps marketers define and categorize broad audiences into precise segments using rich data on demographics, behaviors, financial profiles, and lifestyle traits. These insights make it easier to personalize messaging, optimize media spend, and drive better outcomes.
From ready-to-use syndicated audiences to custom segments and even Contextually-Indexed Audiences that align targeting with content, Experian offers flexible segmentation solutions that perform across digital, TV, programmatic, and social channels.
In our most recent release, we introduced over 750 new and updated audience segments across key categories, including a brand-new category for Experian, giving marketers more accurate, behavior-based targeting options than ever before.
- 135+ new CPG audiences, a brand-new category for Experian, built from opt-in loyalty card and receipt scan data
- 240+ new automotive audiences covering ownership and in-market shoppers
- 100+ new high-spending behavior audiences focused on specific merchant categories
- 24 new wealth and income segments with refined household net worth tiers
- 13 new lifestyle-based housing audiences for family- and household-focused targeting
- 250+ refreshed financial segments with improved naming conventions for better discoverability and clarity
Together, these segments give marketers more accuracy to reach high-intent consumers based on real-world behaviors, spending patterns, and financial capacity.
Audience solutions powered by consumer insights
Experian Marketing Data, one of the most comprehensive and accurate consumer databases in the U.S., is the core of our segmentation capabilities. Backed by over 5,000 demographic and behavioral attributes, it helps you understand not just who your customers are but how they live, shop, spend, and engage, too.
Each audience segment is built with privacy and precision in mind, using a blend of demographic data, financial behaviors, lifestyle signals, and media habits. With these consumer insights, we’ll help you uncover meaningful patterns that lead to smarter strategy.
Experian’s pre-built audiences
Our syndicated audiences are pre-built, ready-to-activate segments based on shared characteristics from age and income to purchase behavior and lifestyle indicators. When speed and scale are a priority, these segments offer a fast, effective way to reach your target audience.
Experian’s 2,400+ syndicated audiences are available directly on over 30 leading television, social, and programmatic advertising platforms, as well as within Audigent for activation within private marketplaces (PMPs).
Here’s what’s new from our August 2025 release:
- CPG shoppers by category (e.g., Frozen Food Shoppers, Multi-Vitamin Shoppers)
- Luxury EV owners and auto brand shoppers (e.g., Rivian, Polestar, Cadillac)
- High spenders in specific categories (e.g., men’s grooming and women’s accessories)
- Ultra high-net-worth households (e.g., Net Worth $50M+) and likely home sellers
- Young Family Homeowners and Growing Family Apartment Renters
Custom audiences for specialized targeting
Need a custom audience? Reach out to our audience team, and we can help you build and activate an Experian audience on your preferred platform. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation.
Contextually-Indexed Audiences
Experian’s Contextually-Indexed Audiences offer a privacy-safe way to reach relevant consumers in the moments that matter without relying on identity signals or third-party cookies. These segments combine Experian’s consumer insights with page-level content signals, enabling you to align targeting with intent and mindset, even in cookieless or ID-constrained environments.
Want to take your segmentation strategy to the next level? Let’s talk. We’ll help you define your audience in ways that drive real results.
Talk to our team about your segmentation methods today
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CES 2025 will be an exciting opportunity to explore how we can work together to shape the year ahead. Here are four themes we expect to take center stage at the event. “There is no better way to kick off the calendar year than with clients and industry peers that are excited to collaborate on new business opportunities. People come straight off the holidays energized by CES and with a pipeline of deals to work on for the coming month. In-person meetings always trump virtual calls and everyone in the industry comes together to make it a fruitful week.”Crystal Jacques, Head of Enterprise Partnerships 1. Addressability in a signal-loss world Addressability has become a cornerstone in AdTech as brands aim to deliver personalized experiences while navigating evolving privacy regulations and signal loss. This shift has prompted advertisers to rethink how they reach and engage audiences. In this environment, alternative identifiers such as UID2 and ID5 have gained traction, offering brands new avenues to target consumers across platforms while respecting privacy. Addressability has shifted from a straightforward tracking mechanism to a multifaceted strategy that combines identity solutions, contextual insights, and collaboration across the ecosystem. ID Bridging and the new OpenRTB 2.6 specs As the industry loses identity signals, it becomes increasingly difficult to identify audiences on the supply-side and make them reachable for the demand-side. The supply-side has used the practice of ID bridging to do just that. ID bridging is the supply-side practice of connecting the dots between available signals to infer a user’s identity and communicate it to prospective buyers. This practice sparked debate, as buyers want full transparency into the use of a deterministic identifier versus an inferred one. "The OpenRTB 2.6 specifications are a critical step forward in ensuring transparency and trust in programmatic advertising. By aligning with these standards, we empower our partners with the tools needed to navigate a cookieless future and drive measurable results.”Michael Connolly, CEO, Sonobi The industry needs widely accepted standards, and that's what we believe the industry has with the IAB Tech Lab's OpenRTB 2.6. The specifications dictate the data the supply-side needs to include in the Primary ID and Enhanced Identifier (EID) fields. In doing so, the demand-side receives more transparent information on when bids have inferred IDs and where they came from. As authenticated signals decrease due to cookie deprecation and other consumer privacy measures, we will continue to see a rise in inferred identifiers. Experian’s industry-leading Digital Graph has long supported both authenticated and inferred identifiers, providing the ecosystem with connections that are accurate, scalable, and addressable. Experian will continue to support the industry with its identity resolution products and is very supportive of IAB’s efforts to bring transparency to the industry around the usage of identity signals. 2. Commerce media consolidation As the world of commerce media expands beyond traditional retail media, we’re seeing a surge of networks across various verticals—financial, travel, and beyond—all competing to capture shoppers’ attention. With each company independently building its own media network, the need for strategic partnerships has never been more evident. Key players face challenges in scaling these networks and meeting growth targets due to infrastructure and funding limitations. In response, the industry is shifting toward partnerships – and potentially consolidation – to create networks that allow advertisers to reach customers across the entire shopping journey – from digital to in-store. To succeed, commerce media networks must form strategic partnerships to enhance their data and identity capabilities and provide advertisers with a complete view of their customer. “With annual growth in billions of dollars, the revenue potential for RMNs is massive. Organizing customer data, segmenting customers, generating insights, creating addressable audiences, and activating campaigns are all critical steps for a RMN to realize that revenue potential. RMNs should select a partner that provides the data, identity and analytical resources to create the winning formula for marketers, customers and retailers.”Steve Zimmerman, Director of Analytics With Experian’s expertise in data and identity solutions, commerce media networks can overcome data fragmentation, create high-quality audiences, and maximize addressability across their entire customer base. This collaborative, partner-led approach empowers retailers to utilize their first-party customer data but not be limited by in-house resources. As the commerce media space matures, those who embrace these partnerships and data-driven solutions will be well-positioned to capture the full potential of this expanding market. 3. Navigating complex privacy regulations With privacy concerns intensifying, consumers are more conscious about data usage, and a series of state-level privacy laws are poised to take effect across the U.S. Multiple state-level laws makes compliance more challenging for marketers since no two laws are the same. While a federal privacy law remains unlikely for 2025, discussions around data ethics, compliance, and transparency will be prominent at CES, especially as a new administration assumes office. Our privacy-forward audience solutions Our Geo-Indexed and Contextually-Indexed Audiences help marketers reach the right consumers while prioritizing data privacy. Created without sensitive personal information, these audiences utilize geographic and contextual signals – not personal identifiers — to offer relevant targeting. These new tools provide both privacy and accuracy, giving advertisers and publishers a competitive edge. “By embracing innovations in geo-based targeting and adhering to responsible data strategies, you can not only comply with these laws but continue to reach your intended audiences effectively.”Jeremy Meade, VP, Marketing Data & Operations As privacy regulations evolve, marketers need trusted allies who can provide transparent, compliant solutions. With deep roots in data protection and security, you can confidently partner with Experian as we proactively stay ahead of regulations and strictly follow all consumer privacy laws. 4. Rise of curation As privacy regulations and signal loss reshape the AdTech ecosystem, curation can optimize programmatic campaigns by connecting advertisers with valuable audiences. This emerging trend utilizes audience, contextual, and supply chain signals to curate high-quality inventory packages for advertisers. By blending insights with inventory, curation ensures greater addressability, efficiency, and performance for both advertisers and publishers. Supply-side platforms (SSPs) are taking a more active role in curating audiences and inventory. SSPs now collaborate with data providers to match buyer and publisher first-party data in real-time, creating curated private marketplaces (PMPs) that deliver transparency, efficiency, and improved match rates. SSPs can send deal IDs to multiple DSPs, which allows advertisers to deploy audience-based campaigns without restrictions on which DSPs or identifiers can be used. However, curation isn’t without challenges. It can add complexity, lead to redundant buys, and even reduce publisher control over inventory. Transparency, quality benchmarks, and strategic partnerships will be critical for maximizing the benefits of curation in 2025. Experian, in partnership with Audigent and others, is at the forefront of enabling privacy-forward curation strategies. Experian and Audigent’s combined capabilities bring together first-party publisher data, contextual signals, and advanced identity resolution to create curated PMPs that empower marketers to deliver precise, impactful campaigns. Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. What were the top themes at CES 2025? Read our CES recap to find out. Read now Contact us Latest posts

At Experian, we understand the importance of audience targeting when it comes to crafting a successful marketing campaign. We are excited to share a curated list of audience recommendations to support your campaign planning so you can confidently connect with your audience. What separates Experian’s syndicated audiences Experian’s 2,400+ syndicated audiences are available directly on over 30 leading television, social, programmatic advertising platforms, and directly within Audigent for activation within private marketplaces (PMPs). Reach consumers based on who they are, where they live, and their household makeup. Experian ranked #1 in accuracy by Truthset for key demographic attributes. Access to unique audiences through Experian’s Partner Audiences available on Experian’s data marketplace, within Audigent for activation in PMPs and directly on platforms like DirectTV, Dish, Magnite, OpenAP, and The Trade Desk. New and improved audience segments we recommend for Q1 campaigns Q1 is the ultimate season for TV, with the NFL playoffs, Super Bowl, College Football playoffs, award shows and so much more capturing viewers’ attention. That’s why we're excited to introduce 14 new and 8 updated television audiences. Recently released on major platforms, these new television audiences offer unique opportunities to align your campaign planning with the latest viewer behavior trends. Cable Satellite or Streaming Network Subscribers Satellite Service Subscribers Mutli Brand TV Owners Seasonal audiences for Q1 New Year’s audiences As the new year approaches, it’s the ideal moment to connect with consumers inspired by their New Year’s resolutions. In 2024, one-third of U.S. adults set goals for the year, focusing on key areas like healthier living, getting organized, exploring new experiences, and improving financial wellness. 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Experian’s specialized football audience segments allow advertisers to engage with fans across categories like NFL stadium visitors, college football enthusiasts, beer drinkers, and dedicated TV viewers, ensuring your brand connects meaningfully with consumers throughout the season. Read more here Financial audiences With tax season just around the corner, brands have the opportunity to connect with financially engaged audiences in the U.S. Whether your goal is to reach self-starters managing their own returns or high-net-worth individuals seeking advanced tax solutions, Experian can ensure your brand connects meaningfully with the right financial audience at the right time. Experian’s specialized financial audience segments empower brands to engage with key groups, such as: Tax Return – Self prepare user Tax Return – Online tax software user Tax Return – Professional Service Preparer user Savvy Sounding-Board Seeking Investor Price Sensitive, Self-Directed Investor Top recommendations for Q1 Based on the top Experian audiences activated in Q1 of 2024, our top 10 list is designed to assist agencies and media buyers plan data-driven advertising campaigns. Occupation 1) Small Business Owners: This segment contains consumers who are likely to be small business owners. 2) Military – Inactive: This segment contains consumers who are likely to be inactive in the military. 3) Legal/Education and Health Practitioners: This segment contains consumers who are likely to have an occupation in Legal/Education and Health Practitioner. 4) Technical: Computers/Math and Architect/Engineering: This segment contains consumers who are likely to have an occupation in Computers/Math and Architect/Engineering. Consumer Lifestyles 5) Vacation/Leisure Travelers: Weekend Getaways: This segment contains consumers who are likely high spenders or frequent purchasers of weekend getaway travel. 6) Women's Sleepwear and Lingerie: High Spenders: This segment contains consumers who are likely high spenders at women's sleepwear and lingerie stores (e.g., Soma, Victoria's Secret). 7) Smart Investors: This segment contains consumers who are likely actively seeking out as much information about an investment as possible before committing, shopping around for the best investment deal, and aversion to financial debt. 8) Computers/Software Frequent Spenders: This segment contains consumers who are likely frequent spenders of computer software. Life Events 9) New Movers: High Spenders: This segment contains consumers who are likely new mover high spenders. 10) New Parents: Child Aged 0-36 Months: This segment contains consumers who are likely to be new parents for children aged 0-36 months. You can find the complete audience segment name in the appendix. Activate the right audiences with Experian For a full list of Experian’s syndicated audiences and activation destinations, download our syndicated audiences guide. Need a custom audience? Reach out to our audience team and we can help you build and activate an Experian audience on the platform of your choice. Connect with our audience team Contact us Appendix Here are the complete audience segment names (taxonomy paths) for all audience segments discussed in this blog post. TV Audiences Television (TV) > Household/Family Viewing > Cable Satellite or Streaming Network Subscribers Retail Shoppers: Purchase Based > Seasonal > Discount Holiday Shoppers Television (TV) > Brand Owners > Multi Brand TV Owners Financial Audiences Lifestyle and Interests (Affinity) > Financial Behavior > Tax Return – Self prepare user Lifestyle and Interests (Affinity) > Financial Behavior > Online Tax Software user Lifestyle and Interests (Affinity) > Financial Behavior > Tax Return –Professional Service Prepare user Financial Personalities > Investments Financial Personality > Savvy Sounding-Board Seeking Investor, Average Investable Assets Financial Personalities > Investments Financial Personality > Price Sensitive, Self-Directed Investor, Very High Investable Assets Occupation Consumer Behaviors > Occupation: Small Business Owners Lifestyle and Interests (Affinity) > Occupation > Military – Inactive Demographics > Occupation > Professional: Legal/Education and Health Practitioners Demographics > Occupation > Technical: Computers/Math and Architect/Engineering Consumer Lifestyles Retail Shoppers: Purchase Based > Travel > Vacation/Leisure Travelers: Weekend Getaways Retail Shoppers: Purchase Based > Apparel > Women's Apparel (Clothing): Women's Sleepwear and Lingerie: High Spenders Financial Behavior > Smart Investors Retail Shoppers: Purchase Based > Technology/Telecom > Computers/Software Frequent Spenders Life Events Retail Shoppers: Purchase Based > Shopping Behavior > New Movers: High Spenders Life Events > New Parents > Child Age 0-36 Months Latest posts

The advertising ecosystem has seen significant transformation over the past few years, with increased privacy regulation, changes in available signals, and the rise of channels like connected TV and retail media. These changes are impacting the way that consumers interact with brands and how brands understand and continue to deliver relevant messages to consumers with precision. Experian has been helping marketers navigate these changes, and as a result, our marketing data and identity solutions underpin much of today’s advertising industry. We’re committed to empowering marketers and agencies to understand and reach their target audiences, across all channels. Today, we are excited to announce our acquisition of Audigent—a leading data and activation platform in the advertising industry. With Audigent’s combination of first-party publisher data, inventory and deep supply-side distribution relationships, publishers, big and small, can empower marketers to better understand their customers, expand the reach of their target audiences and activate those audiences across the most impactful inventory. I am excited to bring together Audigent’s supply-side network as a natural extension to our existing demand-side capabilities. Audigent’s ability to combine inventory with targeted audiences using first-party, third-party and contextual signals provides the best of all worlds, allowing marketers to deliver campaigns centered on consumer choices, preferences, and behaviors. The addition of Audigent further strengthens our strategy to be the premier independent provider of marketing data and identity, ultimately creating more relevant experiences for consumers. To learn more about Experian and Audigent, visit https://www.experian.com/marketing/ and https://audigent.com/. Contact us