Demographic analysis is very useful for businesses to understand how to market to

consumers and strategically plan for future consumer demand trends. Demographic
analysis helps determine whether its products and services are targeted to the
company's most influential consumers. Information from demographics also allows
businesses to build an image that suits their target audience. For example, market
segments may identify specific age groups, such as baby boomers (born 1946–1964)
or millennials (born 1981–1996), with particular purchasing patterns and
characteristics. By knowing things like age to social class, a business can build a logo
and branding strategy accordingly.

Data from demographics also allows businesses to determine the media to use for
their marketing activities. For example, if a business targets a senior audience, of
course using social media will not be as effective as marketing to a young audience.
The emergence of the internet, social media, predictive algorithms, and big data has
had dramatic implications for the collection and use of demographic information.

Modern consumers provide a wealth of data, sometimes without realizing it,

collected and tracked throughout their online and offline lives via a variety of apps,
social media platforms, third-party data aggregators, retailers, and financial
transaction processors. Combined with the growing field of artificial intelligence,
these mountains of collected data can be used to predict and target consumer
choices and purchasing preferences with incredible accuracy based on demographic
characteristics.