What is Niche Marketing?

August 7, 2008

Niche marketing is a term used to describe the targeting of a specific group of people. This may include

• People with a common interest or hobby.
• Groups with certain medical conditions.
• People of certain beliefs.
• People in certain countries or regions of the world.

Niche marketing can take in very large markets and also very small markets. Although the term “niche” should not strictly be used to describe vertical markets like weight loss, fitness, computers and other large markets it commonly is used as a term that involves any topic that a marketer is targeting. Creating niche websites can be highly profitable, particularly if you track down a niche with little competition but large demand.

A real niche market is usually a sub-market of a larger vertical. For example, the following outline breaks down the very large market of photography and shows the possible niche marketing levels:

Level 1 - Photography
Level 2 - Digital Photography
Level 3 - Digital SLR Cameras
Level 4 - Digital SLR Camera Lenses
Level 5 - Canon Digital SLR Camera Lenses
   
The above example takes you six levels deep inside the photography niche but still ensures there is a healthy demand for these sub-niches. Generally the smaller the niche, the less money is being spent within it but this is not always the case. The above example has a healthy number of consumers on all levels with many millions of dollars being spent per year. This makes the niche viable and potentially very profitable for the niche marketer who knows how to exploit it.

Niche markets are everywhere. You can gain ideas from existing websites, television, magazines, books and from your friends and family. By targeting very tight niches you are ensuring that the majority of your visitors are interested in your content and as such, you can generate exceptionally high conversion rates through your affiliate sales.

Posted in Niche Marketing