When you’ve been in business long enough, you’ll start seeing that there are groups within your audience that are interested in different aspects of your products and services.

For any business, having a target audience gives the marketing strategy a well-defined scope. It allows you to get to know a smaller portion of customers better to offer them the best value. Targeting a wider audience is riskier and becomes a nightmare attempting to examine why parts of your marketing campaigns didn’t work.

This is why having a target audience is necessary for your business to stay distinct and competitive. With niche marketing, you can further decide which specific groups you want to focus on the most.

There’s much more room to establish a long-term relationship with these smaller audiences and position your business as a leading authority in that niche. Here’s our take on niche marketing and how it translates into better results for all your digital marketing campaigns.

What Are the Basics of Niche Marketing?

To put it in the simplest terms, niche marketing is about narrowing in on a consumer’s specific characteristics. You look at their age, gender, geographic area, and user behavior to then create marketing campaigns specifically for them. Using the information found, you can make your marketing more relevant to a smaller audience.

Niche marketing is especially important to use when creating your SEO strategy or advertising on Google Ads. By focusing on a niche, you’ll differentiate your business and develop a smaller, but far more loyal group that will visit your site regularly and provide tons of ROI for your website.

To create a niche marketing strategy, you would focus on the following:
• Choosing keywords to use in content and ads about your niche.
• Checking the CPC costs of the niche keywords using Google Keyword Planner, SEMRush, and other keyword research tools.
• Developing a content marketing strategy and then advertising your content on social media and PPC platforms.

Niche Marketing in Action

Here’s an example of what niche marketing would look like for a power company in Georgia. The niche that’s been chosen has to do with targeting environmentally conscious homeowners in their 30s and 40s living in the Metro Atlanta area. To add more specificity to this niche, the business owner of the power company wants to market to eco-friendly families in the area. The reason this niche was chosen was so the power company could brand itself as an environmentally conscious, green company focused on protecting the environment and developing clean energy solutions.

The power company decides to run a widespread social media campaign linking to articles and case studies related to the niche. In the process, the power company decides to expand its target audience to include younger people who don’t yet own a home to broaden the scope but without getting too far outside the original target audience. Niche marketing can be flexible depending on what the results are upon first running the marketing campaigns.

Why Does Niche Marketing Work for Small Businesses?

For many small businesses, niche marketing is what’s needed to develop a loyal audience and establish a unique identity in the industry. Here are several reasons why niche marketing will work well in many cases.

1. Stand Out From the Competition

When you’re in a competitive industry, it’s difficult to break into the internet marketing scene right away and expect to outsmart contenders. You’re all likely selling the same type of product, so you have to work harder only to make a dent in attracting the audience you want. However, if you have a unique selling proposition, you can use that to find a smaller niche for your product.

For example, there are dozens of companies that manufacture soap. It’s a standard household product. However, how many companies produce customized soaps with the customer’s name imprinted wrapped in a special box? It’s going to be much easier to go with that niche because far fewer companies currently specialize in making customized, boutique soaps. Therefore, it’s going to be a challenge for competitors to copy what you do without seeming like copycats desperate for the audience you’ve developed through niche marketing.

2. You Can Find Less Costly Keywords

We’ve discussed the importance of long-tail keywords on our site in the past. Long-tail keywords are more likely to attract customers who are willing to convert.

Niche marketing helps you find more of these long-tail keywords because you have criteria to filter out the more competitive ones which are going to take longer gain search engine visibility. You’re taking care of the challenge of matching the intent of the search engine user by adding niche marketing to your digital marketing strategy.

Your SEO is going to take less time to form, and you’ll get quicker victories by targeting a smaller audience that’s more interested and engaged. Furthermore, fewer companies and people are talking about your niche, so here’s your chance to establish your company as a thought leader here.

3. Greater Room for Personalization

Another reason to incorporate niche marketing into your marketing strategy is to allow for greater personalization of your content and website. You can read a previous article we created on how personalization is essential for web design and digital marketing. First, you can create specialized deals and discounts explicitly targeted towards people most interested in your niche. There’s also more room to create custom email marketing campaigns and social media ads exclusively for those interested in your niche.

There’s more significant opportunity to establish relationships among your target audience by focusing on a niche you can own. You should always aim to pick a niche you have a lot of knowledge about, so you don’t run out of content ideas so quickly.

4. You Can Always Expand Your Niche Later

Some of the largest companies in the world started out as niche businesses. Take Amazon for instance. Amazon wasn’t always the e-commerce giant it is today. In the beginning, Amazon focused solely on selling books online. Jeff Bezos, the founder of Amazon, ran the business from his home with the backing of his parents, who invested over $250,000.

As soon as the model proved to be profitable, Amazon was able to crush Barnes and Noble and other brick-and-mortar competitors and expand its product selection. Later on, the company would get into creating its own branded products based on everyday electronics people use, taking the idea of RadioShack and making it much more accessible online. You never have to stick with one niche forever. Be like Jeff Bezos and start out small, but expand and improve on earlier successes.

5. Greater Flexibility

You’re less restricted picking a niche you know you could excel at being the best in. More general markets pose higher risks, so there’s room for A/B testing and experimentation. With a profitable niche market, you reduce the costs by only focusing on potential customers who care about what you’re selling. This is why there are businesses who have made a fortune upselling their services to niche companies because of the strong relationships and brand loyalty established.

Potential Downsides

Niche marketing isn’t perfect and comes with potential downsides you should consider too. You won’t have as much room for your business to grow if you make your niche too small and limited. There are many unknowns also because there’s less historical data to show whether your niche strategy will succeed. Eventually, you may run into the problem of competitors marching in to try to get a piece of the action once they see you’re succeeding, so brand loyalty becomes the best way to protect your small business during these times.

However, marketing wouldn’t be as fun without the ability to test and try out new ideas and concepts. Despite these potential downsides, niche marketing is still the best way to keep your small business from going in far too many directions and not standing out. It’s better to be a specialist than a generalist in business, and this applies to other areas of life.


Niche marketing opens up the doors for small businesses to grow and build an audience. It’s less expensive and costly than competing in overcrowded markets with high barriers to entry. Finding the right niche could be what you need to break into an industry and work your way up gradually.

For more digital marketing tips, you can always check back on our blog each day for new content. Interested in a free consultation? Call us at 470-440-3434 or email [email protected] for more details.