Using Audience Taxonomy to Identify and Target Niche Markets 

In today’s competitive marketplace, it’s more important than ever for businesses to identify and target niche markets. By understanding the needs and wants of a specific group of consumers, businesses can develop products and services that are tailored to their needs. This can help businesses to stand out from the competition and attract a loyal customer base.

Know How Audience Graphs Aid Businesses in Understanding Their Target Audience blog by VentiveIQ.

One way to identify and target niche markets is to use audience taxonomy. Audience taxonomy is a system for classifying and organizing audiences based on their interests, demographics, and other characteristics. By understanding the different types of audiences that exist, businesses can develop targeted marketing campaigns that are more likely to be successful.

There are several different ways to create an audience taxonomy. One common approach is to use a combination of demographic and psychographic data. Demographic data includes information such as age, gender, income, and location. Psychographic data includes information such as interests, values, and lifestyle. 

Once an audience taxonomy has been created, businesses can use it to identify and target niche markets. For example, a business that sells organic food might target consumers who are interested in health and wellness. Or a business that sells luxury goods might target consumers who are interested in status and prestige.

By using Audience Taxonomy, businesses can develop more effective marketing campaigns that are more likely to reach their target audience. This can help businesses to increase sales, improve customer loyalty, and grow their business. 

Benefits of using audience taxonomy

• Increased reach: Audience taxonomy can help businesses to reach a wider audience by targeting specific groups of consumers.
• Improved targeting: Audience taxonomy can help businesses to target their marketing campaigns more effectively by reaching consumers who are more likely to be interested in their products or services. 
• Increased sales: Audience taxonomy can help businesses to increase sales by targeting consumers who are more likely to buy their products or services. 
• Improved customer loyalty: Audience taxonomy can help businesses to improve customer loyalty by providing consumers with products and services that are tailored to their needs. 
• Business growth: Audience taxonomy can help businesses to grow their business by reaching new customers and increasing sales.

5 steps involved in creating an audience taxonomy

1. Identify your target audience: The first step is to identify your target audience. Who are you trying to reach with your marketing campaigns? What are their interests, demographics, and other characteristics?
2. Collect data: Once you know who you’re trying to reach, you need to collect data about them. This data can be collected from a variety of sources, such as surveys, website analytics, and social media. 
3. Analyze the data: Once you have collected data, you need to analyze it to identify patterns and trends. This will help you to understand the needs and wants of your target audience. 
4. Create categories: Once you have analyzed the data, you can create categories to classify your audience. These categories can be based on demographics, psychographics, or other characteristics. 
5. Use the taxonomy: Once you have created an audience taxonomy, you can use it to identify and target niche markets. You can use taxonomy to segment your email list, create targeted social media campaigns, and develop more effective marketing materials. 

Tools that can be used to create an audience taxonomy 

• Google Analytics: Google Analytics is a free tool that can be used to collect data about website visitors.
• SurveyMonkey: SurveyMonkey is a tool that can be used to create and distribute surveys. 
• Sprout Social: Sprout Social is a tool that can be used to manage social media accounts. 
• Adobe Audience Manager: Adobe Audience Manager is a tool that can be used to collect and manage audience data.

Top 4 challenges of using audience taxonomy 

1. Data collection: Collecting data about your target audience can be a challenge. You need to make sure that you collect the right data, and that the data is accurate.
2. Data analysis: Analyzing data can be a challenge. You need to make sure that you use the right tools and techniques to analyze the data and identify patterns and trends. 
3. Taxonomy creation: Creating an audience taxonomy can be a challenge. You need to make sure that the categories are clear and easy to use. 
4. Taxonomy use: Using an audience taxonomy can be a challenge. You need to make sure that you use the taxonomy to identify and target niche markets effectively. 

VentiveIQ provides a vast selection of more than 4000 preexisting audience segments that are both deterministic and free from cookies. These segments are constructed utilizing various data sources such as app ownership, location visits, transactions, in-market activities, demographic information, and device attributes. They can be conveniently accessed for acquisition through leading Data Stores and top DSPs. 

Conclusion 

Despite the challenges, audience taxonomy can be a valuable tool for businesses that want to identify and target niche markets. By using audience taxonomy, businesses can develop more effective marketing campaigns that are more likely to reach their target audience. This can help businesses to increase sales, improve customer loyalty, and grow their business