The Ad-Pocolypse is Coming: How Finding Your Niche Can Save Your Business

Finding your niche isn't just some trendy marketing advice – it's about to become your financial lifeline.

Why? Because AI is about to flip the script on online advertising, and if you're not prepared, you'll be hemorrhaging money faster than you can say "when did we stop making money."

What's Going to Happen to Paid Media Marketing?

AI is about to turn the online advertising world on its head. No more need for marketing gurus or paid media wizards. AI's taking over, and it's bringing some serious muscle.

Pattern recognition? AI's got it down pat. Patience for testing? AI doesn't need coffee breaks. Data crunching? AI does it for breakfast.

Sounds great, right? Well, hold onto your wallets, because here's the kicker: When everyone from your local bakery to Fortune 500 companies can run sophisticated ad campaigns, guess what happens? Yep, ad costs are going to shoot through the roof.

Don't believe me? Let's look at the numbers:

1. According to a report by eMarketer, digital ad spending is projected to increase by 17.6% in 2024, reaching $645.80 billion globally.
2. Facebook's average cost per click (CPC) increased by 89% year-over-year in 2021, according to AdEspresso.
3. Google Ads' average cost per click across all industries rose by 15% between 2020 and 2021, as reported by WordStream.
4. LinkedIn's cost per click has been steadily rising, with an average increase of 6-8% year-over-year, according to LinkedIn's own reports.
5. A study by Merkle found that Amazon's cost per click for sponsored product ads increased by 14% year-over-year in Q4 2021.

These trends are just the beginning.

As AI democratizes access to sophisticated advertising tools, we're looking at a potential explosion in ad costs.

So, what's a savvy business owner to do? Find your niche, and find it fast.

Why Your Niche Matters for Advertising & Lifetime Customer Value (LTV)

Without a niche, you're just another voice in the digital crowd, throwing money at ads and hoping something sticks. But hope isn't a strategy, and in the world of AI-driven advertising, it's a fast track to emptying your bank account.

But here's the real kicker: if your business is a poor fit for your customers, they'll bounce faster than a rubber ball.

And with these skyrocketing ad costs, you can't afford to be a one-hit wonder.

You need customers who stick around, who come back for more, who rave about you to their friends.

That's where Lifetime Customer Value (LTV) comes into play. This isn't just some fancy metric to impress the board. In the AI advertising era, it's your golden ticket.

Because let's face it, with these new ad costs, your first sale might just break even or – brace yourself – result in a loss.

But don't panic yet. With the right niche, you can target with laser precision, connect on a deeper level, and communicate with crystal clarity. The result? Higher LTV, better ROI, and a business that doesn't just survive but thrives in the AI-driven future.

So, what kind of niches are we talking about?

There Are Many Ways to Niche

In my experience, people both under-complicate and over-complicate the niche finding process.

People either choose a "niche" that is WAY too broad like "b2b service businesses in the USA" or hyper-niche and eliminate their scaling potential with niches like "Custom surfboards for left-handed toddlers in Alaska" (hyper-niching is MUCH more rare but it does happen).

That said, you need to open your mind to the possibility of different types of niches! The following is a list of 20 options that you can use, and there's many that go far beyond the simple industry-specific options

1. Industry Niche

• Specializing in a specific industry or sector.
• Example: Legal technology software for law firms, eco-friendly packaging for the food industry.

2. Geographic Niche

• Targeting customers in a specific location or region.
• Example: Real estate services in a particular city, regional food products.

3. Revenue Niche

• Focusing on businesses or customers within a certain revenue range.
• Example: Financial consulting for startups with less than $5 million in annual revenue.

4. Demographic Niche

• Catering to a specific demographic group based on age, gender, income, education, etc.
• Example: Fitness programs for women over 50, luxury travel packages for high-income individuals.

5. Psychographic Niche

• Targeting customers based on lifestyle, values, personality, or interests.
• Example: Vegan skincare products for environmentally-conscious consumers, adventure travel for thrill-seekers.

6. Behavioral Niche

• Based on customer behaviors such as purchasing habits, brand loyalty, or product usage.
• Example: Subscription services for frequent travelers, loyalty programs for repeat customers.

7. Product or Service Niche

• Specializing in a specific type of product or service.
• Example: Handcrafted leather goods, cloud-based accounting software for small businesses.

8. Problem-Solution Niche

• Focusing on solving a specific problem for a defined group.
• Example: Noise-canceling devices for remote workers, allergy-free snacks for children.

9. Benefit Niche

• Targeting customers who seek specific benefits or results.
• Example: Anti-aging skincare products, productivity tools for remote teams.

10. Cultural or Ethnic Niche

• Catering to a specific cultural or ethnic group.
• Example: Traditional Indian clothing for weddings, Spanish-language educational resources.

11. Technology Niche

• Specializing in specific technology or platforms.
• Example: Apps for Android users, software solutions for blockchain companies.

12. Usage Niche

• Based on how a product or service is used.
• Example: Heavy-duty cleaning equipment for industrial use, portable chargers for outdoor enthusiasts.

13. Lifecycle Niche

• Targeting customers at a specific stage in their life or business lifecycle.
• Example: Financial planning for new parents, consulting services for startups in the seed funding stage.

14. Event Niche

• Focusing on specific events or occasions.
• Example: Wedding photography services, corporate event planning.

15. Price or Quality Niche

• Positioning based on price point or quality level.
• Example: Luxury fashion for high-end consumers, budget-friendly tech gadgets.

16. Relationship Niche

• Building long-term relationships through personalized services or community engagement.
• Example: Custom-tailored clothing services, membership-based wellness programs.

17. Channel Niche

• Specializing in specific sales or distribution channels.
• Example: E-commerce businesses selling exclusively through online marketplaces, local farmers’ markets for organic produce.

18. Time-Based Niche

• Focusing on specific times or seasons.
• Example: Seasonal products like holiday decorations, summer camps for kids.

19. Accessibility Niche

• Catering to customers with specific accessibility needs.
• Example: Products for individuals with disabilities, services for non-English speakers.

20. Cause-Driven Niche

• Targeting customers who support a particular cause or social movement.
• Example: Eco-friendly products for sustainability advocates, brands supporting charitable causes.

Want to see what's possible? Use the prompt below and the list above to get some ideas!

PROMPT: Discover Your Niche

Act as a marketing and branding professional. Review the types of niches below, then ask me a series of questions about my business in order to help me define a niche that will instantly be interested in my product or service.

[INPUT NICHE LIST]

Want to Take the Next Step? The Riches In the Niches Challenge

Want a GPT that can help you discover niches you never considered? You can get it on Thursday, 9/19/2024 at 11am! https://www.dhirubhai.net/events/7237915117672128515/comments/

I'll be hosting an event to launch the Riches in the Niches Challenge which starts next Monday.

If you're serious about finding your true niche – the one that'll propel you to the top in the coming AI advertising revolution – this is your golden opportunity.

During the challenge you'll be provided with a number of AI tools and templates to not only find your niche, but create content that gets them excited about your business... plus you can win free stuff!