Audience Targeting and Segmentation

Purpose #

This article explains how Shopstars approaches audience targeting and segmentation across advertising platforms. It outlines the types of audiences used, how they are created, how testing is performed, and how audience data is maintained over time. The objective is to provide clients with a clear understanding of how targeting is designed to maximize reach, relevance, and return on ad spend.

Targeting Philosophy #

Effective advertising is not about reaching the largest audience but about reaching the right audience. Shopstars uses a layered targeting strategy that balances prospecting, retargeting, and retention. This ensures ads reach new potential customers, re-engage site visitors, and maintain relationships with past buyers. Targeting strategies are data-driven and rely on accurate pixel and analytics setup to build audiences with precision.

Audience Types #

Prospecting Audiences

These audiences are designed to reach new potential customers. They are built using:

• Interest targeting (e.g., demographics, hobbies, or behaviors on Meta or TikTok)
• Keyword intent targeting (e.g., search terms on Google Ads)
• Broad targeting with conversion optimization when sufficient pixel data exists Prospecting audiences usually receive the largest portion of ad spend since they expand reach and drive top-of-funnel growth.

Lookalike or Similar Audiences

Based on data from Shopify, pixels, or CRM exports, lookalike audiences are created to find users with similar behaviors to existing customers. For example:

• 1% lookalike of past purchasers on Meta
• Customer match lists in Google Ads
• Similar audience segments on TikTok These audiences tend to perform well in conversion campaigns because they reflect real buyer profiles.

Retargeting Audiences

Retargeting focuses on users who have already interacted with the store but have not yet converted. Examples include:

• Visitors who viewed products but did not add to cart
• Users who abandoned checkout
• Past customers who have not purchased within a set time window Retargeting ads are designed with stronger calls to action such as limited-time offers or reminders.

Retention Audiences

Retention campaigns target existing customers to encourage repeat purchases or upsells. These are built using:

• Customer lists exported from Shopify
• Loyalty program membership data
• Historical purchase data segmented by product categories Retention ads are often combined with email or SMS campaigns for cross-channel reinforcement.

Audience Creation Process #

Shopstars follows a structured process to create audiences:

1. Collect data sources from Shopify, pixels, and client CRMs.
2. Upload or sync data into ad platforms, ensuring fields such as email, phone, or purchase history are correctly mapped.
3. Configure custom audiences based on behavior (e.g., added to cart but no purchase).
4. Create lookalikes or similar audiences using the best-performing custom lists.
5. Document audience definitions in Basecamp for client review.

Testing and Optimization #

Audience performance is tested continuously. Shopstars runs campaigns with multiple audience segments in parallel to identify the highest performers. Underperforming audiences are paused, and budgets are reallocated. Testing also includes varying lookalike percentages (e.g., 1% vs. 5%) and experimenting with combinations of demographics and interests.

Data Hygiene #

Audience lists must remain accurate and compliant. Shopstars updates customer lists regularly to ensure they reflect the latest data from Shopify and CRM systems. Outdated or inactive contacts are removed to maintain audience quality. Data handling practices comply with GDPR and CCPA regulations. Clients may be asked to provide updated exports on a scheduled basis.

Platform Considerations #

• Meta: Best suited for lookalikes and retargeting due to rich behavioral data.
• Google Ads: Strong for intent-based targeting with keyword and customer match lists.
• TikTok: Audience fatigue is faster, so targeting relies on frequent creative rotation and broad interests.
• Pinterest: Best used for inspiration-based targeting aligned with visual product categories.

Client Involvement #

Clients may contribute to audience building by:

• Providing updated customer exports from Shopify or CRM systems
• Confirming which customer segments should or should not be targeted (e.g., wholesale vs. retail)
• Approving audience definitions posted in Basecamp before campaigns are launched

Summary #

Audience targeting at Shopstars is built on a layered strategy that combines prospecting, lookalikes, retargeting, and retention. Data from Shopify and pixels ensures accuracy, while continuous testing identifies the strongest performers. All audience definitions are documented in Basecamp, and compliance with data regulations is enforced. This structured approach maximizes reach and conversion efficiency across platforms.