Guide
Niche marketing
Definition, strategies and examples
Niche marketing is a highly targeted form of advertising for a small, specific and well-defined audience. Learn tips and best practices for how to develop a niche marketing strategy that allows you to get your brand’s voice heard among relevant customers.
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What is niche marketing?
Niche marketing is a technique through which advertisers focus their messages and advertising resources on a demographic with specific needs, preferences and traits that differentiate it from the mass market. A niche marketing strategy should center around clear messaging that emphasizes a brand’s unique selling proposition for a narrow audience, and which is consistent across owned content, earned media, paid search, paid media and paid social.
Why is niche marketing important?
Niche marketing is important because businesses of all sizes (such as large, established enterprises, as well as emerging or small businesses) need to differentiate their offerings in today’s increasingly globalized and competitive market. By adopting a niche marketing strategy, brands can more clearly define their unique value proposition, target audience, market segmentation and top-priority marketing channels while also helping maximize return on ad spend.
What steps should a brand take to develop a niche marketing strategy?
To build a niche marketing strategy, companies should initially conduct enough market research to gain a thorough understanding of the specific needs of their target audience. As part of these efforts, businesses should confirm that they can still generate a profit by serving this narrower customer base. Also during the research stage, brands should focus on learning more about their competitors’ strategies to reach and engage buyers – including what has and hasn’t been successful. Based on these insights, brands can then build a niche marketing strategy focused on the best methods of promotion for the particular customer segment they have identified.
What are the advantages and disadvantages of niche marketing?
Niche marketing offers businesses many advantages, but it does come with certain risks and challenges. On the plus side, niche marketing allows companies to compete against fewer brands, make the right customer connections and optimize their marketing spend. Ultimately, businesses may be able to leverage this approach to strengthen brand loyalty and cultivate repeat buyers. On the other hand, by serving a smaller target market, businesses may face more difficulties growing their business, responding to market changes and maximizing profits.
Niche marketing strategies and examples
Blog
Since launching in 2014, the personal hygiene brand PiperWai has maintained a focus on serving environmentally and socially conscious consumers, offering a collection of cruelty-free products from Black artisans around the world. Sarah Ribner, who co-founded the company and serves as CEO, says that she decided to move forward with the business because she “saw an opportunity and niche and went for it,” relying on “inner guidance and intuition”. PiperWai went on use various Amazon Ads solutions, including Brand Stores and Sponsored Display ads, to effectively reach and engage their target audience.
Blog
After initially working with Amazon Ads on sponsored ads campaigns, the sports nutrition brand Quest Nutrition wanted to explore additional ways to share their story with their core audience of health-conscious exercise enthusiasts. Using Streaming TV ads, Quest Nutrition found they were able to drive brand awareness at scale while still reaching relevant audiences based on Amazon’s first-party shopping insights.
Case-studies
Outback Presents, a leading independent promoter of live entertainment in North America, recently collaborated with Amazon Ads partner Revive to market a highly anticipated tour headlined by the U.S. comedian, actor, and internet sensation Druski among a hyper-targeted U.S. audience: event-goers whose interests lie at the intersection of comedy and hip-hop. They went on to develop a niche marketing strategy that incorporated a variety of ad formats to successfully reach their target audience, including audio ads, Twitch video ads and Sponsored Display ads.
FAQs
A niche is a product or service offering focused on serving a very specific segment of consumers with unique characteristics, rather than appealing to mass markets.
A niche marketing plan should focus on leveraging the channels and platforms that your target audience engages with most frequently, rather than prescribed marketing touchpoints. Depending on the preferences and behavioural patterns of your niche audience, those strategies may include formats such as sponsored ads solutions, Streaming TV ads, audio ads or livestream shopping channels – all of which allow you to reach relevant shoppers with distinct media consumption habits.
Affiliate marketing is a revenue-sharing venture between a website owner and an online retailer that typically focuses on engaging a niche market. According to AuthorityHacker, the three most profitable niches are Education/E-Learning, Travel and Beauty/Skincare.1
If you’re interested in additional support, contact us to request services managed by Amazon Ads. Budget minimums apply.