Why E-commerce Companies Need to Segment Their Audience by Paid Campaigns (According to 2024 Research)

As marketers who got into personalization to better connect with customers, we were curious about how people use our platform to connect with theirs.

To help other marketers better segment their audiences, we dove into data on thousands of Ninetailed experiences.

This allowed us to uncover how Ninetailed power users segment their audiences.

This article is a quick snapshot of our recent Segmentation Report, presenting our findings around paid traffic segmentation. Here’s what we found.

The Top 5 Segmentation Variables in 2024

In the past couple of years, there’s been a drastic shift in marketing spend from paid ads to organic content. Consumers are seeking more personalized experiences from new and familiar companies alike. This demand puts more pressure on marketers across industries to tailor content to their customers’ needs. Before we reveal how each industry segments, here are the general top segmentation variables:

1. 22.6% of all companies in our data set segment by location

2. 18.2% of all companies in our data set segment by behavior

3. 18.0% of all companies in our data set segment by page visit

4. 14.3% of all companies in our data set segment by paid traffic

5. 5.5% of all companies in our data set segment by shopping data

Our Take:

These segmentation variables dominate website content personalization due to their direct impact on user experience, relevance, and higher ROI.

Paid traffic segmentation, employed by 14.3% of companies, differentiates between users acquired through paid channels and organic reach. This helps them optimize marketing strategies and ROI.

Paid Traffic Segmentation Among E-commerce Companies

The e-commerce market has exploded over the past few years, with global sales growing from $4.9 trillion to $6.3 trillion between 2021 and 2024.

Between the crowded market, stricter data privacy regulations, and decline in paid ad performance, e-commerce companies are rethinking their marketing strategies. For most, this has led to a greater focus on personalization.

Here’s how they’re breaking up their audiences:

1. Location — 27%

2. Page Visit — 18.6%

3. Paid Traffic — 16.9%

4. Behavior — 16.9%

5. Shopping Data — 7.1%

Paid traffic segmentation targets visitors who visit a website via a paid ad on a search engine, social media platform, website, or app.

Compared to organic visitors, paid visitors' buyer journeys rely on initial brand perception.

Companies can use paid traffic segmentation to create a stronger impression for paid visitors, who likely aren't familiar with the brand.

Our Take:

While there’s a growing shift of spend from paid to organic channels, many e-commerce companies still drive great results from paid. The prevalence of paid traffic segmentation hints that e-commerce companies are still focused on paid ads.

Through changes in messaging and content, they likely use it to interact with paid audiences differently than organic.

Paid Traffic Segmentation in Action

Ruggable, an innovative interior brand known for its patented 2-piece rugs, took personalization to a new level by creating two distinct experiences on its website.

Ruggable recognized that their customer base comprised two primary segments — dog owners and cat owners. They decided to capitalize on this insight by launching two separate paid campaigns targeting each group. However, they didn't stop at just targeted ad content. They extended this personalization strategy right through to their website.

Dog-Related Campaigns: Visitors who landed on Ruggable's website via dog-related paid campaigns were greeted with dog-centric content. This included images of dogs enjoying Ruggable's rugs, testimonials from dog-owning customers, and even a special collection of rugs ideal for households with dogs. This tailored experience resonated strongly with dog owners, making them feel understood and catered to.

Cat-Related Campaigns: Similarly, visitors arriving from cat-related paid campaigns were met with a plethora of cat-related content. This included pictures of cats lounging on Ruggable's rugs, reviews from cat-parent customers, and a curated selection of rugs perfect for feline-friendly homes. This personalized experience appealed to cat owners, reinforcing the brand's understanding of their unique needs.

By matching the ad message to the landing page experience, Ruggable created a seamless journey for their customers.

The result?

• A 25% increase in conversion rate

• A 700% increase in click-through rate