Targeting in marketing: types and how to segment better

What is targeting in marketing

Targeting (or audience segmentation) is the process of identifying and selecting specific groups of consumers to direct your messages, products, or services to. Instead of speaking to everyone with the same message, you speak to each segment with a message relevant to their situation, needs, and moment.

Targeting is based on a simple but powerful premise: not all your potential customers are the same, and treating them as if they were is the fastest way to waste budget and lose conversions.

According to McKinsey, companies that apply advanced personalization generate 40% more revenue than those that don't. And personalization starts with targeting: knowing who you're addressing before deciding what to say.

The STP model: the foundation of targeting

Targeting doesn't exist in a vacuum. It's the second phase of the STP model:

1. Segmentation: dividing the market into groups with similar characteristics
2. Targeting: choosing the most attractive segments for your business
3. Positioning: defining how you want each segment to perceive you

Most marketing mistakes happen because people skip straight to positioning (messages, creatives, campaigns) without having done rigorous segmentation and targeting first.

The 4 types of segmentation for targeting

1. Demographic segmentation

Divides the audience by measurable population characteristics: age, gender, income, education level, marital status, occupation.

| Variable | Segment example | Application | |----------|----------------|-------------| | Age | 25-34 years old | Message and tone adapted to the generation | | Income | High income (>60K/year) | Premium products, less emphasis on price | | Occupation | Marketing directors | B2B with technical language | | Education | University graduates | Content with greater depth |

Advantage: data is easy to obtain and segment on advertising platforms.

Limitation: two 35-year-olds with the same salary can have completely different interests and behaviors.

2. Geographic segmentation

Divides by location: country, region, city, zip code, climate, population density.

Practical applications:

• Ecommerce: display prices in local currency, shipping times by zone
• Local services: landing pages by city with relevant content
• International SaaS: language, legal compliance, local market examples
• Retail: promotions based on weather or local events

Geographic segmentation is especially powerful in Spanish-speaking markets, where the differences between Spain, Mexico, Colombia, Argentina, and Panama are enormous in terms of purchasing power, buying culture, and digital maturity.

3. Psychographic segmentation

Divides by psychological variables: values, interests, lifestyle, personality, attitudes.

This segmentation answers the "why" behind purchase decisions. Two users with the same demographic profile can buy the same product for completely different reasons:

• User A: buys running shoes because they value health and athletic performance
• User B: buys the same shoes because they value image and social status

The message that converts User A (performance, technical data, athlete testimonials) doesn't work for User B (aesthetics, trends, social approval).

How to obtain psychographic data:

• Customer surveys and interviews
• Analysis of comments and reviews
• Social media behavior
• Preference tests on the website

4. Behavioral segmentation

Divides by real actions: purchase history, pages visited, usage frequency, response to previous campaigns, customer journey stage.

This is the most powerful segmentation for conversion because it's based on what people do, not on who they say they are or what we think they want.

| Behavior | Segment | Marketing action | |----------|---------|-----------------| | Visited product 3 times without buying | Interested but undecided | Retargeting with incentive | | Purchased once 6 months ago | Dormant customer | Reactivation email | | Buys every 2 weeks | Loyal customer | Loyalty program / upsell | | Abandoned cart with 200 euros | High-value abandoner | Personalized email with urgency | | Reads blog but doesn't buy | Informational lead | Nurturing with content + CTA |

Targeting in digital marketing: key strategies

Custom Audiences

Upload your customer or lead list to platforms like Meta Ads or Google Ads. The platform cross-references the data with its users and lets you show ads exactly to those people.

Primary use: retargeting existing customers, upselling, excluding current customers from acquisition campaigns.

Lookalike / Similar Audiences

The platform analyzes your custom audience and finds users with similar profiles and behaviors who don't know you yet.

Primary use: scaling acquisition while maintaining traffic quality. Meta recommends starting with a 1% lookalike (most similar) and expanding gradually.

Retargeting (Remarketing)

Showing ads to people who have already interacted with your website, app, or content. Retargeting works because the user already knows you: the trust barrier is lower.

Reference data:

• Retargeted users are 70% more likely to convert (Criteo)
• Retargeting ad CTR is 10 times higher than standard display

Effective retargeting types:

• Product retargeting: shows exactly the product the user viewed
• Sequential retargeting: different messages based on days since the visit
• Cross-device retargeting: follows the user between mobile and desktop
• Exclusion retargeting: excludes those who already purchased to avoid wasting budget

Contextual targeting

Shows ads on web pages whose content is relevant to your product. Doesn't require personal user data, making it valuable in a post-cookie world.

Example: a CRO tool that displays ads on digital marketing and ecommerce blogs.

How targeting improves conversion

The relevance equation

Conversion depends on relevance. And relevance depends on targeting. The chain is direct:

Better targeting → More relevant message → Higher engagement → Higher conversion → Lower CPA

An Epsilon study found that 80% of consumers are more likely to buy when brands offer personalized experiences. And personalization starts with knowing who you're targeting.

Personalization on your website

Targeting doesn't end with ads. It continues on your website:

• Landing pages by segment: different versions for different audiences
• Dynamic content: showing testimonials from the same industry as the visitor
• Adapted pricing: plans or prices based on company size or location
• Contextual CTAs: different calls to action based on journey stage

Each level of personalization increases the probability of conversion. A visitor who arrives at a generic landing page converts at 2-3%. The same visitor on a landing page personalized for their industry and specific problem can convert at 8-12%.

Common targeting mistakes and how to avoid them

1. Targeting too broad

The mistake: "our product is for everyone." If you speak to everyone, you speak to no one. Generic messages generate indifference.

Solution: define 2-3 priority segments and create specific messages for each one. It's better to be highly relevant to a small segment than moderately relevant to a large one.

2. Targeting too narrow

The mistake: segmenting so much that your audience has 500 people. There's not enough volume for platforms to optimize delivery or to achieve statistically significant results.

Solution: find the balance. On Meta Ads, audiences of 100K-500K usually work well for acquisition. For retargeting, smaller audiences are acceptable.

3. Not aligning the message with the segment

The mistake: segmenting correctly but using the same message for all segments. Segmentation without message personalization is wasted effort.

Solution: each segment should have its own message, creative, and landing page. Targeting defines the "who"; the message defines the "what" and the "how."

4. Ignoring behavioral segmentation

The mistake: basing all targeting on demographic and geographic data. They're a good starting point but insufficient to maximize conversion.

Solution: implement behavior tracking on your website (pages viewed, products added to cart, emails opened) and use it as the basis for segmentation and retargeting.

5. Not excluding segments

The mistake: not excluding current customers from acquisition campaigns, or users who already purchased from retargeting campaigns for that product.

Solution: configure exclusions in all your campaigns. It's one of the fastest ways to reduce budget waste.

Targeting and CRO: the synergy

Targeting defines who reaches your website. CRO optimizes what happens when they arrive. Without good targeting, CRO works with irrelevant traffic. Without CRO, the best targeting in the world is wasted on a website that doesn't convert.

The winning combination:

1. Precise targeting attracts the right people
2. Optimized landing pages deliver the relevant message
3. Optimized UX eliminates friction in the conversion process
4. Continuous testing improves every touchpoint

If you want to analyze how your website converts the traffic it already receives, start with a free audit at Scan&Boost. And if you need a team to optimize your conversion strategy from start to finish, learn about our CRO agency service.

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Adrià Vidal is the founder of Boost. +1,000 optimization actions, +47.8% average conversion increase per client, +EUR 7.8M in additional revenue generated.