What is Demographic Data, Understanding and Utilizing It

Data Analysis
Author

Juma Shafara

Published

June 4, 2022

Photo by DATAIDEA

Demographic data helps us to deepen our knowledge of the target audience and to create buyer personas. It is primarily used to strategically tailor offerings to specific target groups and can serve as the basis for business analysis and performance reporting. Practical business intelligence relies on the synergy between analytics and reporting, where analytics uncovers valuable insights, and reporting communicates these findings to stakeholders.

What is Demographic Data?

Demographic data is information about groups of people according to certain attributes such as age, sex, and place of residence. It can include socioeconomic factors such as occupation, family status, or income. Demographics and interests are among the most important web analytics and consumer buying behavior analytics statistics. In marketing, the demographics approach focuses more on age, gender, and interests rather than fertility and mortality data.

Importance of Demographics

In web analytics and online marketing, demographic data is collected to gain deeper insights into the target group of a web page or to create buyer personas based on this information. It is primarily used for strategic supply targeting and can also be used for business analysis and performance reporting.

Examples of Demographic Data

Here are some examples of data you can request in a demographic survey:

  • Age: One of the most important demographic factors, age is a good indicator of the groups of users that visit a web page and the age groups that buy the most. It provides information about content that is interesting to a particular age group and where potential can be identified.
  • Gender: Gender information shows which parts of a website or which products are more suitable for men or women. Classifying visits according to gender survey questions can serve as the basis for planning campaigns targeting men or women.
  • Education: Data on education can indicate whether users have attended university.
  • Income: Income information helps target high-income individuals, for example, to buy a high-end product.
  • Interests: Data on user interests shows what visitors of a web page are interested in and allows marketers to draw conclusions about consumer behavior. For example, if users have an affinity for certain product categories, marketers can create ads focused on these interests.
  • Language: For online marketing and website design, the language of the target group is important, especially for internationally oriented online stores. Advertising and content should be geared towards the language spoken by the target group.
  • Countries: Knowing the region, city, or country users come from is important for targeting advertising measures specifically to these geographic segments.

Additionally, the use of demographic data allows for segmenting user groups, for example, to establish a connection between people aged 18 to 24 with certain keywords and interests. This type of targeting is especially useful for remarketing campaigns.

What Does Demographic Data Tell Us?

Demographic data can provide answers to the following questions:

  • What groups of users visit the website? Young users have different interests than older users.
  • Which of these groups provides the most income? The most profitable clientele usually belongs to a certain age group.
  • Where should content be placed to increase sales? Relevant content can be tailored to age, gender, and interests.
  • How can ads be better targeted? Young female users want to see different types of ads compared to older male users.
  • What factors improve remarketing? Thanks to segmentation, subsequent actions can be tailored to the target group and corresponding interests.
  • How can email campaigns be more effective and directly target specific groups? Emails can be sent to specific groups based on demographic data.

Demographic data provides much deeper insight into user behavior. Information about user groups can be used to improve the effectiveness of advertising campaigns, optimize website offerings, and drive sales. At the same time, the legal use of this data should not be ignored: it should be anonymous, and users should be informed about the collection of data, as well as the use of cookies. Users must also have the opportunity to object to data collection.

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