5 Audience Segments Subscription Box Services Should Be Targeting

3 Min Read

The popularity of subscription box services has grown exponentially—from $57M in sales in 2011 to a whopping ~22.7B in 2021. Between the large variety of products to choose from and the ease of having the boxes delivered directly to one’s door, it’s no wonder that this industry is doing so well. Additionally, subscription boxes saw a huge lift in 2020 when the world shut down and many people were unable to shop for various goods in person.

While lifestyle changes resulting from the pandemic helped to bolster revenue numbers, these services are still experiencing a lot of success, especially in regards to ecommerce—online sales were estimated to reach $33.48B in 2022 and $38.17B in 2023. Knowing this, subscription box brands can benefit from targeting engaged audiences, particularly those who are active online shoppers.

Consider the following specialized audience segments to target in your next Connected TV (CTV) advertising campaign—all available via MNTN’s partnership with Oracle Data Cloud.

Approach: Subscription Boxes’ Biggest Fans

• Segment name: Subscription Box Lovers
• Audience provider: AnalyticsIQ
• Why to target this audience: This group has already shown interest in or has a high likelihood of enjoying subscription boxes. Knowing that these consumers are familiar with products like yours, your task is to show them why your box should be considered before others. Not only should you highlight your product, but other benefits of your service as well—fast and/or discounted shipping, free trials, a satisfaction guarantee, etc.

Approach: Food and Drink Connoisseurs

• Segment name: Food & Beverage Subscription Box Lovers
• Audience provider: AnalyticsIQ
• Why to target this audience: Grocery/food/beverage subscription services were the most popular type in 2022. Meal kits in particular are thriving—this market will generate an estimated $7.64B in 2022 and grow to $11.76B by 2027.

Approach: Consumers Who Work From Home

• Segment name: Remote Workers Likely to Enjoy Subscription Boxes
• Audience provider: AnalyticsIQ
• Why to target this audience: This segment has multiple pulls for subscription box brands. First and foremost, they have a high likelihood of enjoying your product(s). On top of this, there is a good chance that they will remember your ad if viewed on Connected TV (CTV)—48% of remote workers reported seeing ads on TV and 39% said they recall seeing ads on video streaming services.

Approach: Personal Care Enthusiasts

• Segment name: Makeup & Beauty Subscription Box Lovers
• Audience provider: AnalyticsIQ
• Why to target this audience: While grocery/food/beverage subscription services hold the top spot with consumers, personal care products (makeup and beauty included) come in a close second. After the chaos of the last few years, everyone could use some R&R and self-care can be an integral part of that.

Approach: Online Shoppers

• Segment name: Online Shoppers
• Audience provider: Lotame
• Why to target this audience: Fifty-seven percent of adults in the U.S. shop online at least once a week. So, it’s wise for brands—no matter what industry they’re in—to target this segment. In the case of subscription boxes, since many require online signups, these services should take advantage of consumers’ propensity for second-screen usage to drive website traffic.

Leverage Connected TV to Reach Your Ideal Customers

With ~225.7M Connected TV users in the U.S. and consumers cutting cords in high volumes, now is the perfect time to develop a strong CTV advertising strategy. The segments mentioned in this article are a great place to start for subscription box services. However, this isn’t an exhaustive list and there are many more audiences that can be reached via CTV. Advertising solutions like MNTN Performance TV can support your efforts to target your ideal customers.