What does “target audience” refer to?

The group of people you are addressing with a campaign. They share common desires and challenges, such as craft businesses in Düsseldorf. “Entrepreneurs” is too broad a term. Your company may serve multiple target audiences, but each campaign should focus on just one. That way, the reader feels directly addressed and thinks, “This is exactly for me.”

How do I define a target audience?

Look at your existing customers. Which group is currently generating the most revenue for you? Which customers cause you the least amount of hassle and are most likely to recommend you? That's where your next campaign should begin. Often, these are the customers who contribute the largest portion of your profits and achieve the best results with your offering.

What criteria are there for defining a target audience?

I focus on four key factors. The group has specific needs or challenges that you can address. They have the necessary budget. Their problem is urgent, and you are able to solve it. And these customers achieve good results with your offering, without requiring significant effort from you. If the budget or urgency is lacking, you will likely have many conversations without reaching a conclusion.

What are some examples of target audiences?

In the B2B sector, this might include craft businesses, agencies, consultants, or local service providers. The more specific, the better: “craft businesses in Düsseldorf” is more effective than “entrepreneurs.” For example, a real estate agent could target buyers of vacation homes in the Alps, families looking for a home in Düsseldorf, or those interested in a property on Mallorca. Each of these groups requires a tailored approach.

How do you segment a target audience?

Segment your customers into groups with similar needs and challenges. For each group, develop a dedicated campaign with tailored messaging, for example, one for trades businesses and one for agencies. Start with the group that generates the most revenue and presents the fewest challenges. Once that campaign is running, move on to the next group.

How do you find a niche?

Look at what kind of customers you're particularly good at helping. These customers achieve the best results and require the least amount of your effort. For example, my client Michael Andre doesn't sell just any properties; he sells vacation homes in the Alps to buyers with the necessary financial resources. The search never truly ends. As the world changes, you'll need to adapt your niche.

Choose a Niche Target Market: Why Specialists Earn More

By Artur Neumann. Published October 21, 2026, updated October 21, 2026. 5 min read.

Choose a niche target market you can understand and serve well. Why specialists can charge more and how a clearer audience improves your marketing.

I run my business in Germany. Monetary examples use euros unless another currency is stated.

“I help businesses.” I hear that sentence constantly. And it’s precisely that sentence that costs many companies hundreds of thousands of euros in lost profits every year.

I understand the thinking behind it. You don’t want to limit yourself. You want to reach as many people as possible, because you believe that will lead to more earnings. That’s not true.

My rule is simple: you can target all demographics. But not all at the same time.

Reaching Everyone Means Reaching No One

When you try to appeal to everyone, you ultimately fail to truly connect with anyone. Your advertising falls flat. Your content sounds generic. No one feels personally addressed.

Most businesses offer something that appeals to a wide range of groups. That’s not necessarily a problem. However, every advertising campaign should be laser-focused on a single group, a group with specific desires and specific problems.

You’ll notice the difference in the reaction. When you cast a wide net, people think, “Sounds interesting.” It’s rare for that to translate into customers. When you target a specific group, they think, “That’s exactly what I’m looking for.”

Without a clear target audience, you’ll see typical warning signs. You’ll receive inquiries, but people won’t have a budget. Or their problem isn’t urgent. Or they simply aren’t a good fit. You’ll have conversation after conversation, and your conversion rate will remain low. You’ll spend more money on advertising, but it won’t get better. Marketing will feel like swimming against the current.

An Example: Holiday Homes in the Alps

My client, Michael Andre, sells real estate. He could sell properties anywhere in the world. However, he has narrowed his focus to a specific region: the Alps.

Even within that region, he doesn’t sell just any property. His clients are looking to buy a holiday home in the Alps and have the financial means to do so. These are people who are seeking a retreat, relaxation, and quality time with their families in nature. They are willing to spend a significant amount of money for that.

Michael has completely focused his efforts on this specific group. He runs the website alpenimmobilien.de. He also has a book called “ALPINE PROPERTIES.” He actively promotes it, and every day he gains new interested parties. Those who order the book will discover how to find the right property in the Alps.

This has a second advantage. With every reader, Michael knows exactly what interests them: a property in the Alps. He can directly invite them to a personal consultation. I describe how such a consultation works in my article on my sales process. Michael’s business is thriving.

And that’s just one target audience. Michael could build a separate website for each of these groups:

Families looking to buy a home in Düsseldorf.
Buyers searching for a luxury apartment in Bangkok.
Customers wanting a finca in Mallorca.

Each of these groups has different desires. Each requires a unique approach.

The Numbers Behind Focus

Imagine you run the same advertisement twice. Once broadly, targeting “business owners.” Once specifically, targeting “trades businesses in Düsseldorf.” In both cases, 1,000 people see your ad. Let’s look at some numbers:

Broadly for “business owners”: 20 inquiries, 1 customer.
Specifically for “trades businesses in Düsseldorf”: 50 inquiries, 10 customers.

The same number of people see the ad. However, you gain ten times as many customers. Therefore, acquiring a new customer costs you only a tenth as much. That’s not a marketing trick. It’s mathematics.

This leads to a significant advantage that many overlook. When each customer costs you less, you can invest more in advertising than your competitors. Other business owners are thinking about how to protect their margins. You are thinking about how far you can grow. You stop hoping and start planning.

Your Best Customers Require the Least Effort

There’s a second reason for focusing your efforts. 80% of your customers require a lot of work and bring in little profit. The remaining 20% bring in 80% of your profits and require the least amount of effort. It’s smart to focus on precisely that group of customers.

Even though you may be capable of much, you’ll notice that you’re particularly good at helping a specific type of customer. These customers achieve the best results. I’ll show you how to describe that ideal customer in my article on winning customers as a coach or consultant.

This search never truly ends. The world is changing. You’ll need to continually adjust your target audience or develop new offerings for new groups. This realization will accompany you throughout your entire entrepreneurial journey.

One Market Per Campaign, Not Per Company

That doesn’t mean your company can only serve one target audience. You can have multiple groups. However, for each campaign, you should focus on just one. For example:

A campaign for trades businesses,
A campaign for agencies,
A campaign for consultants,
A campaign for local service providers.

Each of these campaigns speaks directly to the right people, people with their specific problems, their specific desires, and in their own language. I explain how to write such copy in my article on writing sales copy.

So, I’m not saying you should limit yourself. I’m simply recommending that you focus on one target audience at a time. Once that’s working, you can move on to the next one.

Where Do You Stand Right Now?

Read these four sentences and choose the one that best describes you:

You speak to everyone and accept every customer who comes along.
You have an idea of your ideal customer, but still accept almost everyone.
You focus your marketing efforts on a specific group, but you aren’t consistent.
You have a clearly defined target audience and decline unsuitable inquiries.

In sentences 2 and 3, you already know where you want to go, but you haven’t yet pursued that direction consistently. When an inquiry comes in that isn’t quite a perfect fit, you still accept it. Your content is better than a generic “for everyone” approach, but it isn’t yet so targeted that people immediately feel personally addressed.

In sentence 4, marketing feels different. Your advertisements reach precisely the right people. The comments you receive show you that these people feel understood. Your cost per inquiry is decreasing because less advertising is wasted. You are only speaking with genuinely interested prospects who are a good fit, have the budget, and a pressing problem that you can solve.

Your Task

Answer two questions:

Which customer group is currently generating the most revenue for you?
Which customers cause you the least amount of stress and are most likely to recommend you?

That’s where your next campaign should begin. Speak directly to this group, using their language, addressing their problems, and appealing to their desires. Everything else can wait.