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Map of U.S.A.: Coke vs. Pepsi

Cable television is a good illustration of how niche marketing works; singling out the most desirable consumers for particular markets (some markets you didn't even know existed). To do so, practically every cable channel has a psychographic segmentation of its audience.

Instead of pursuing the mass audience, cable channels try to forge a closer relationship with the audience they *do* reach. It's the quality of relationships that counts, not the quanity of them, because closer relationships increase the likelihood that advertising on will make an impact.

Hypothetically, say the largest international manufacturer of bourgeois cat food is looking to advertise on TV. Company research indicates that their target market is adults 25-50 with household incomes upwards of 50,000 who subscribe to Utne Reader, drink New Age beverages, and buy over 300 of mailorder clothing by credit card per year.

Since there is no channel devoted to these people (yet), the manufacturer's media buyer looks for a TV audience with demographics/psychographics most like those of bourgeois cat food buyers.

To help make the match, cable networks extensively research audiences and tailor programming accordingly.

The Discovery Channel--which targets upscale, educated, adults aged 25-54--positions itself as a source of documentary and informational programming. Since Discovery is targeting pretty much everyone with money, it defines its audience more by attitudes than by demographics. According to marketing VP Chris Mosely, a "psychographic tie binds them together--they want information and they want to be entertained."

Yeah, well, so do fans of MacNeil-Lehrer, Jenny Jones and Big Bird but that doesn't make them the same audience. So to break it down, Discovery Communications (which owns the Discovery Channel and the Learning Channel) did a study of "Info-Set Viewers"--those who watch a half-hour of either channel a week.

Their research uncovered eight groups and, according to Mosely, these groups direct the content of Discovery's television programming, CD-ROMs and home videos [1]:

Here and Now exampleHere & Nows (14 percent) are predominantly female (78 percent), have average incomes, are equally spread across age groups, and are the most ethnically diverse. They want to be "in the know" and are interested in people and the latest trends and fashions. They like topics relating to lifestyle, current events, and reality. Their favorite channels are the classic broadcast trio-ABC, CBS, and NBC.
Practical examplePracticals. (11 percent) 83 percent female, less-educated, have average incomes, and tend to be older. They are home-centered and have traditional values. They want practical information on hobbies, how-to, and medical topics. Their favorite channels are The Learning Channel, Public Broadcasting System (PBS), and The Family Channel.
Macho exampleMachos. (12 percent) are also predominantly male (76 percent) with average incomes and education levels. They often have blue-collar jobs and traditional male interests like action sports. They enjoy programs on military technology, airplanes, wars, and battles. Their favorite channels are ESPN, TBS, and TNT.
Sociologist exampleSociologists. (10 percent) are 54 percent female, highly educated, upscale, and white-collar. They are civic-minded, curious travelers who are interested in people and other cultures. They like shows about primitive tribal people, archaeology, and history. Their favorite channels are Discovery, Arts & Entertainment (A&E), and PBS.
Boy Toy example
Boy Toys. (13 percent) are predominantly male (91 percent), upscale, white-collar, and younger. They are leaders who like gadgets and gizmos and are fascinated by the physical world. They like programs about airplanes, military technology, and space. Their favorite channels are Discovery, ESPN, TBS, and A&E.
Scholar exampleScholars. (15 percent) are 56 percent female, have the highest income of all groups, and are primarily in white-collar jobs. They are intellectuals who seek knowledge for its own sake and are very active and well-read. They like programs about space, scientific discoveries, and environmental issues. Their favorite channels are Discovery, PBS, and CNN.
Entertain-Me exampleEntertain-Me's. (15 percent of information-seeking viewers) They have lower-than-average educations, average incomes, and tend toward blue-collar jobs. They want to be entertained by TV and have traditional values. They like to watch how-to or hobby shows and programs about the Old West. Their favorite channels are ABC, The Nashville Network, and TBS.
Escapist exampleEscapists. (10 percent) are the youngest of the groups and are slightly more likely to be male (56 percent). They have average incomes and lower-than-average education. They tend to be show-offs who are into having fun and adventure and being irreverent. They like shows about unexplained events, daredevils/stunts, and reality. Their favorite channels are FOX, HBO, USA, and MTV.

***

Lifetime Network's niche market is women. Of course, half-of-the-population is not exactly a "niche": Lifetime's audience is better described as women 18-49, college-educated, with incomes in the 30,000-60,000 range. Still a pretty broad group, so Lifetime commissioned research to segment women cable subscribers according to viewing preferences and attitudes toward TV. The mass slimmed down to five:

Companions (prefer soap operas, action, mysteries, comedies)
Dreamers (talk and game shows, cooking, home shopping)
Contemporaries (news, movies, dramas, mysteries)
Realists (news, sports, documentaries)
Traditionalists (reruns, old classics, game shows)

Lifetime now produces original movies to reach particular types. Women in strong roles attract Contemporaries, emotional family dramas appeal to Companions, etc.

Why there's only five segments is anyone's guess. With all the white upper-middle-upper class women in the world, you'd think they could come up with...I dunno...eight at least. Of course, in the 1:1 future, this won't be an issue.


[1] "New Markets" Cable Television," by Rebecca Piirto, American Demographics, June 1995.

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