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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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It's almost the start of a new year, so it's time to plan your 2025 marketing strategy. One-third of U.S. adults planned to make a New Year's resolution in 2024, with adults under 30 being the most likely to do so. From living healthier lifestyles to traveling more often, there is an opportunity to capture customers with well-targeted messaging. But how do you know which audiences are most interested in these goals? In this blog post, we’ll reveal audience segments designed for you to reach the most relevant shoppers for your New Year’s resolutions campaigns according to shoppers' goals and resolution categories. You can find the complete audience segment name in the appendix. Start the year strong with Experian's audience insights With the New Year almost upon us, it’s the perfect time for a fresh start. Utilize Experian’s syndicated audiences to ensure your marketing messages resonate with your ideal customers. 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. Five New Year's resolution audience categories to embrace this new year There are many different types of New Year's Resolutions that people set come January 1st. Here are five common New Year's Resolutions: Healthy habits Get organized Explore new experiences Live life to the fullest New Year’s budgeteers Let's break down each resolution category and which audiences you can use to target consumers based on their New Year’s resolutions. Healthy habits A significant portion of consumers set their sights on adopting healthier lifestyles and maintaining newfound habits. Target audiences could include those who have recently purchased gym memberships and are shopping at health stores, demonstrating a commitment to their resolutions. Here are five audience segments that you can activate to target consumers focused on healthy habits in the new year: NEW! New Year's Health/Fitness/Gym Membership Shoppers NEW! Frequent Gym Goers Vitamins/Supplements Shoppers New Year's Food/Healthy Food Shoppers New Year's Vitamins/Diet Supplement Shoppers By strategically targeting these segments, your marketing efforts are more likely to resonate with those determined to make a year of lasting, healthy change. Get organized Many consumers pledge to declutter and get organized. One key target audience could consist of those who have recently purchased organizational tools or storage solutions. Additionally, consider reaching out to homeowners or individuals in the midst of a major life change, such as moving or expanding their families, as they often seek ways to simplify and organize their spaces. Here are seven audience segments that you can activate to target consumers focused on getting organized in the new year: NEW! Furniture and Home Decor: Deals Discounts Affordable High Spend Spenders Shoppers NEW! Post Holiday Shoppers Household Goods: Frequent Spenders Home Improvement/DIY: Frequent Spenders Furniture & Home Decor In Store: Frequent Spenders Garden & Landscaping Stores: Frequent Spenders Hardware & Home Improvement Stores: In Store Frequent Spenders To expand or reach new audiences, you can layer in purchase predictors to reach those who are likely to spend on home maintenance and improvement products or are expanding their families. Home Maintenance and Improvement Explore new experiences Many consumers want to embark on a journey of self-improvement by exploring new experiences, whether it's picking up a new hobby or visiting a place they've never been. One primary target audience could be vacation and leisure travelers, as they often seek new destinations and opportunities to make the most of their seasonal getaways. Additionally, sports enthusiasts are always looking to boost their outdoor adventures through fresh experiences and specialized equipment. Here are six audience segments that you can activate to target consumers focused on exploring new experiences in the new year: Play Golf Pickleball Enthusiast Wilderness Sports and Camping Enthusiasts Activities: Camping Summer Airline Travel Summer Travel: Vacation/Leisure Live life to the fullest A considerable number of individuals make resolutions aimed at embracing life to the fullest. One prime target audience includes those who have recently booked travel experiences or adventures, showcasing their commitment to exploring new horizons. Additionally, consider reaching out to individuals who are likely to visit sports stadiums and arenas. Here are seven audience segments that you can activate to target consumers focused on living life to the fullest in the new year: NEW! Budget Savvy Air Travelers Air Travel: Frequent Spenders Cruises: Frequent Spend NFL Stadium Visitors Ski Resort Visitors Vacation/Leisure Travelers: Weekend Getaways Culinary Experience To expand or reach new audiences, you can layer in purchase predictors to reach consumers who are likely to spend on travel and travel-related products. Travel New Year's budgeteers As the new year begins, many consumers are rethinking their finances and seeking smarter ways to spend and save. These audiences are focused on achieving their financial goals by utilizing budgeting tools, finding flexible payment options, and taking control of their debt. With financial wellness top of mind, they are ready to explore solutions that align with their resolution to be more financially savvy. Here are seven key audience segments that reflect the mindset of consumers eager to make 2024 a year of financial empowerment: In market for Buy Now Pay Later In market for Mortgage Refinance In market for Auto Loan Refinance Credit Card High Utilization Likely to Transfer Credit Card Balance Loyal Rewards Enthusiast, Low Credit Card Balance Secure, Savvy Credit User, High Home Equity Balance We can help you reach consumers in the new year Connect with consumers pursuing their New Year's resolutions to kick off 2025. Whether your audience seeks to embrace healthy habits, get organized, explore new experiences, budget their personal finances, or live life to the fullest, Experian Marketing Data provides a solid foundation for targeting, enrichment, and activation As we get ready for 2025, let the power of Experian’s data-driven insights guide your marketing strategies, helping consumers turn their resolutions into reality. Connect with our audience team 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. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation. You can activate our syndicated audiences on-the-shelf of most major platforms. For a full list of Experian’s syndicated audiences and activation destinations, download our syndicated audiences guide. Explore our other seasonal audiences that you can activate today. View now Contact us Appendix Here are the complete audience segment names (taxonomy path) for all audience segments discussed in this blog post. Healthy habits NEW! Retail Shoppers: Purchase Based > Seasonal > New Year's Health/Fitness/Gym Membership Shoppers NEW! Retail Shoppers: Purchase Based > Health and Fitness > Frequent Gym Goers Retail Shoppers: Purchase Based > Health and Fitness > Vitamins/Supplements: Vitamins/Supplements Retail Shoppers: Purchase Based > Seasonal > New Year's Food/Healthy Food Shoppers Retail Shoppers: Purchase Based > Seasonal > New Year's Vitamins/Diet Supplement Shoppers Get organized NEW! Retail Shoppers: Purchase Based > Home Furnishings > Furniture and Home Decor: Deals Discounts Affordable High Spend Spenders Shoppers NEW! Retail Shoppers: Purchase Based > Seasonal > Holiday Shoppers: Post Holiday Shoppers Purchase Transactions > Household Goods > Frequent Spenders Purchase Transactions > Home Improvement/DIY > Frequent Spenders Retail Shoppers: Purchase Based > Home Improvement & DIY > Furniture & Home Decor In Store: Frequent Spenders Retail Shoppers: Purchase Based > Home Improvement & DIY > Garden & Landscaping Stores: Frequent Spenders Retail Shoppers: Purchase Based > Home Improvement & DIY > Hardware & Home Improvement Stores: In Store Frequent Spenders Purchase Predictors > Shoppers All Channels > Home Maintenance and Improvement Explore new experiences Lifestyle and Interests (Affinity) > Activities and Entertainment > Play Golf Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Pickleball Enthusiast Retail Shoppers: Purchase Based > Outdoor Activities > Wilderness Sports and Camping Enthusiasts Travel Intent > Activities > Camping Retail Shoppers: Purchase Based > Seasonal > Summer Airline Travel Retail Shoppers: Purchase Based > Seasonal > Summer Travel: Vacation/Leisure Retail Shoppers: Purchase Based > Travel > Vacation/Leisure Travelers: Summer Trips Live life to the fullest NEW! Retail Shoppers: Purchase Based > Seasonal > Budget Savvy Air Travelers Retail Shoppers: Purchase Based > Travel > Air Travel: Frequent Spenders Retail Shoppers: Purchase Based > Travel > Cruises: Frequent Spend Mobile Location Models > NFL Stadium Visitors Mobile Location Models > Ski Resort Visitors Retail Shoppers: Purchase Based > Travel > Vacation/Leisure Travelers: Weekend Getaways Travel Intent > Activities > Culinary Experience Purchase Predictors > Shoppers All Channels > Travel New Year’s budgeteers Financial > In Market > Buy Now Pay Later Financial FLA Friendly > In Marketing Mortgage Refinance Financial FLA Friendly > In Market Auto Loan Refinance Financial FLA Friendly > Credit Card High Utilization Financial FLA Friendly > Likely to Transfer Credit Card Balance Financial Personalities > Credit Card Financial Personality > Loyal Rewards Enthusiast, Low Credit Card Balance Financial Personalities > Home Equity Financial Personality > Secure, Savvy Credit User, High Home Equity Balance Latest posts
Brands are increasingly focused on offering personalized experiences while respecting consumer privacy. Addressability enables them to reach specific audiences with relevant messages, and personalization crafts unique content that aligns with each audience's interests and needs. By combining these strategies, brands can create more relevant and effective marketing campaigns. With new regulations and signal loss reshaping the landscape, alternative identifiers like the ID5 ID and The Trade Desk's Unified I.D. 2.0 (UID2) are gaining importance. These tools give advertisers a more holistic view of consumers across channels, enhancing personalization and addressability even as traditional third-party cookies lose relevance. To shed light on this topic, we interviewed experts from Audigent, Basis Technologies, CvE, ID5, MiQ and others. They shared insights on navigating privacy, utilizing new identifiers, and enhancing personalization with consent. Drawing from their perspectives, we've identified five considerations to help brands adapt and succeed in this evolving landscape. 1. Embrace a privacy-centric approach With the increasing focus on consumer data protection, prioritizing privacy in your addressability efforts is essential. Implement strict data guidelines to protect personally identifiable information (PII) and maintain compliance with state-specific regulations. To achieve this, empower consumers by providing clear and transparent choices about data sharing and honoring their preferences. Avoid targeting based on protected categories or sensitive information. By adopting a privacy-first mindset, you can build consumer trust while still delivering relevant advertising experiences. “It's important to champion consumer privacy and the free internet. We need to strike a balance between the two. This balance is essential for our jobs, the economy, news, politics, and all the valuable content and information we rely on.”Drew Stein, Audigent 2. Personalize with consent Consumers are more willing to share their information when they see clear benefits. In fact, over half of shoppers—and two-thirds of Gen X and Millennials—express a desire to receive holiday shopping deals directly from their preferred brands1. By offering value through loyalty programs, special offers, or interactive platforms, you can personalize experiences without compromising privacy. To implement this strategy, encourage consumers to share their preferences and needs by being transparent and giving them control over their data. This approach builds trust, empowers your audience, and enhances personalization. “Building personalization based on the data consumers have consented to share should lead to a positive experience that drives better engagement because it's relevant to them.” April Weeks, Basis Technologies 3. Personalize with contextual targeting Contextual targeting involves delivering ads based on the content users are currently engaging with rather than user identifiers. By focusing on personalization through contextual targeting and dynamic content, you can align your strategies with your audience's real needs and interests. This approach allows advertisers to reach consumers on websites with more visitors matching the demographics, behaviors, or interests they want to target. “Personalization absolutely can thrive. We have various solutions, all utilizing IDs for targeting and personalization. Beyond that, we can also personalize using context, geo-contextual data, and creative strategies.” Georgiana Haig, MiQ 4. Use alternative identifiers As advertisers move beyond third-party cookies, exploring alternative identifiers offers reliable means to connect with consumers. Options like email addresses or device IDs provide direct connections, improving targeting accuracy. Utilize identity graphs to link different signals and identifiers to establish strong ties to individual users or households. This approach maintains, and can even enhance, your ability to reach the right audience and measure campaign performance. “It's not just about maintaining addressability. It's about massively improving addressability. When we run tests with some of our clients, they're seeing 30, 40, 50, 60% incremental reach by using ID5 versus cookies.” Mathieu Roche, ID5 5. Build partnerships Navigating the complexities of addressability doesn't have to be a solo effort. Partnerships between brands, publishers, and tech providers can lead to innovative solutions that benefit everyone. Consider engaging in data partnerships to access new audience segments without maintaining extensive data. Collaborations focused on your tech stack can enhance your ability to deliver personalized content effectively and at scale. “The rise of second-party data partnerships is going to be an interesting trend over the next couple of years. And if you need mass scale across the world, I think that's a much more cost effective and scalable way to do it.” Paul Frampton, CvE Steering toward success The future of addressability and personalization hinges on your ability to adapt to the changing privacy landscape while delivering meaningful, personalized experiences. By focusing on these five key considerations, you can navigate the complexities of modern advertising, build stronger relationships with consumers, and drive sustainable growth. Connect with our addressability experts Footnote Online survey conducted in June, 2024 among n=1,000 U.S. adults 18+. Sample balanced to look like the general population on key demographics (age, gender, household income, ethnicity, and region). Latest posts
Originally appeared on VideoNuze Connected TV (CTV) is a leading platform in digital advertising, combining the precise targeting of digital ads with the broad reach and storytelling power of traditional TV. This creates an immersive experience that offers full-funnel marketing results. As consumer time spent watching CTV has doubled over the past five years and linear TV viewing patterns have shifted, advertisers now see CTV as essential for reaching and engaging audiences. Of those CTV users, viewers increasingly choose to watch content with ads. By 2025, free ad-supported streaming TV (FAST) viewers will increase to 49% of CTV users, further highlighting the opportunity for marketers to captivate audiences in ways standard digital display ads can't match. With the explosion of consumer time spent and advertising dollars following, making CTV more addressable and targeted requires a combination of identity and audience. Historically, the IP address has been the most popular way to target a household with a CTV (e.g., LG, Samsung, Vizio device) or streaming platform (e.g., Disney+, Paramount+, Roku, Amazon Prime, etc.). As IP addresses continue to fluctuate in terms of durability, consistency, and type, including the increased adoption of IPv6, we have seen a new incumbent enter the CTV ecosystem: Unified ID 2.0 (UID2). UID2 stands out as a particularly valuable tool for CTV advertisers. It provides a standardized way to identify and target users across CTV and traditional channels like display and mobile while respecting consumer privacy. Given that purchases might not occur on CTV, UID2's ability to link ad exposure on CTV to conversions on other devices is crucial for demonstrating a CTV campaign's true impact. Authenticated audiences are key to CTV's appeal A significant advantage of CTV is its high rate of logged-in, authenticated users. This provides marketers with reliable first-party data for targeting and measurement purposes. UID2 benefits from this since it's a universal identifier based primarily on first-party data, such as people’s email addresses and phone numbers. Authenticated viewers can also be connected across different devices, enabling marketers to understand the full customer journey, which helps attribute conversions more accurately to CTV ads. Key advantages of CTV for digital marketers Superior viewing experience: Larger screens and a captive audience watching high-quality on-demand content Authenticated users: Enables precise audience targeting, more personalized ad experiences, and enhanced cross-device attribution Value exchange: Viewers get cost-effective content with personalized ads, leading to higher engagement "Authenticated viewers and universal IDs like UID2 are revolutionizing CTV advertising, enabling the effective delivery of personalized content and ensuring strong engagement for marketers; Paramount is committed to optimizing across platforms and will continue to utilize tools and advancements that maximize reach for our partners and improve the user experience for our viewers."Travis Scoles, Executive Vice President, Paramount Advertising The role of universal IDs in CTV advertising Universal IDs, like UID2, play a critical role in CTV by ensuring consistent user identification across platforms while respecting privacy. Adoption of UID2 is gaining traction in the TV industry, with brands such as AMC Networks, Disney, Dish Media, FreeWheel, NBCUniversal, Roku, and Paramount integrating it into their digital advertising ecosystem. As authentication increases across traditional digital and mobile apps, especially CTV, universal IDs like UID2 enable cross-device and cross-channel identity strategies without cookies. This is especially important as traditional identifiers like third-party cookies and IP addresses face an uncertain future. Better understand and reach your audience with identity graphs For CTV ad spending to catch up to time spent with CTV, the industry must use these authenticated signals and universal IDs. Identity graphs, like Experian’s, integrate various identifiers (e.g., universal IDs, CTV IDs, IP addresses), allowing CTV platforms to understand relationships between households, individuals, and devices. This understanding enables: Publishers using universal IDs can make advertising on their platform more addressable, which will lead to higher demand. Marketers can achieve greater precision with cross-device targeting, cross-channel frequency management, and more holistic measurement since conversions often happen on non-CTV devices. Viewers receive a more personalized ad experience (without seeing the same ad repeatedly), which will increase engagement with a marketer's campaign. Watch our Ask the Expert video with The Trade Desk to deepen your knowledge on CTV advertising and UID2. Watch the video here Contact us Latest posts