What is demographic segmentation in marketing?

Demographic segmentation in marketing is the process of fitting your audience—both existing and prospective customers—into groups based on characteristics like age, gender, income, and education level. You can then use those groups to fine-tune your ad campaigns, making sure you're getting the right creative in front of the right audience. On Spotify Ad Studio, our self-serve ads manager, this process is simple thanks to intuitive targeting tools and analytics.

Let's say your brand sells eco-friendly baby products. You may want to target environmentally conscious millennial parents. But a tech startup selling a budgeting app? Young adults fresh out of college are more likely to be your target demographic.

Demographic marketing can help you reach these ideal customers by positioning your brand—and advertising efforts—squarely in front of an audience that's most likely to engage.

Examples of demographics

The exact demographics you choose to focus on will depend on your products or services, objectives, and the makeup of your customer base.

Imagine you've been tasked with running campaigns for a chain of home decor stores. Your mission: Cater to both the “reliable reading lamp" crowd and the “designer chandelier" cohort.

This sort of brief is perfect for demographic segmentation. By segmenting your customers by income, you won't waste your ad spend trying to sell high-end products to shoppers who simply aren't interested.

Ready to get started? The following are just a few examples of demographics in marketing:

• Age: Gen Z, Millennials, Gen X, Boomers
• Occupation: student, self-employed, salaried, retired
• Education: high school graduates, college graduates, postgraduates, professional degrees

How to use demographics in your marketing strategy

Just like styling an optimal look, using demographic information in your marketing toolkit requires an understanding of each customer's unique “fit."

Here are a few examples of how to segment audiences by different demographic groups.

Marketing campaigns based on age demographics

When it comes to effective marketing, one size rarely fits all. Be sure to keep your audience's generational tastes in mind. For example, you might use interactive social media promotions to reach tech-savvy Gen Zs, match millennials' eco-consciousness² with sustainability-focused campaigns, or tap into Gen X nostalgia with throwback-themed digital audio ads.

Marketing campaigns based on gender demographics

Gender-based marketing is an art, not a science. It's like creating a gender-neutral clothing line that acknowledges the nuances between different fashion tastes without catering to stereotypes—you want to strike a balance that respects individuality.

The goal is to create campaigns that resonate on a personal level while honoring your audience's diversity and staying true to your brand's voice. Take, for instance, a razor company: If advertising with Spotify, your audio ads or video ads for men might highlight the precision feel of the razors for a close shave, while a parallel campaign aimed at women might emphasize the gentleness of the same razor for sensitive skin.

Marketing campaigns based on income and occupation demographics

Marketing a top-of-the-line smartwatch with a host of deluxe features? Your advertising demographics may include well-paid executives who value efficiency and productivity. But if your product is an affordable, durable watch with basic fitness features, you might aim for the budget-savvy fitness person who's not willing to sacrifice their gym membership for a fancy gadget.

Marketing campaigns based on other demographic factors

A successful campaign accurately reflects its environment. This means other demographic data—such as location, education, relationship status, and family size—can often be as influential as age, gender, income, and occupation when it comes to shaping your marketing strategy.

Consider, for example, a fitness brand promoting a new home workout program. By targeting college-educated suburbanites with young children, you may be able to tap into an audience that values health but is short on time for visits to the gym.

How Spotify can aid your demographic marketing strategy

Ready to turn your marketing strategy into a template for success? With Ad Studio, you can create audio or video ad campaigns in minutes, even when you're starting from scratch. Use our first-party data to target your audiences based on demographic factors such as age, gender, location, language, and platform preference—and then take things a step further with interest, real-time context, and genre targeting.

Get started with Ad Studio today.