Numerous Marketing Terms Written on a Chalk Board.

Let’s clarify some of those confusing marketing terms advertisers are using everyday.

Many say that marketers have their own language. We certainly do love adopting terminology, and with how fast the industry changes, the jargon can change just as quickly. The only downside is that it can lead to confusion if we are not all on the same page about what certain terms mean. We’re going to look at and clarify a few important marketing terms.

What Is the Difference Between the Marketing Terms Predictive and Segment Targeting?

Predictive targeting is an algorithmic way of defining an audience. Rather than using a few demographics like age or gender to target consumers, predictive targeting takes into account any number of factors to single out individuals instead of groups of people.

Segment targeting selects people by demographic. It may be something as simple as location or race, but the target audience may also be defined by things such as interests or values. Today’s digital world makes it far easier to track people by likes and dislikes since consumers are more than happy to share that information, especially on a social media profile.

Segmented targeting allows you to easily market to the group of individuals you find most likely to want your product. However, anyone not in that group will be left out. Predictive targeting gets even more specific, and chooses your market by individual without discriminating by certain demographics.

Intent to Purchase

Sometimes the behavior of a consumer shows that his or her intention is to buy a product now and not simply to do research. We call this purchase intent. You want to target these customers most strongly, especially with a paid ad campaign, because they are the most likely to convert into a sale. Indicators of intent to purchase may include certain search words, and can also be related to demographics.

For example, a 15-year-old girl may be looking at wedding dresses online, but she’s probably not going to make a purchase today. A 22-year-old woman with a fiancé and website on The Knot is likely to convert into a sale. Other factors to consider include whether or not the specific individual has the propensity to make purchases based on his or her history.

These marketing terms are all vital when it comes to targeting the right audience and developing campaigns that produce a high conversion rate.