Audience segmentation is the process of dividing a broad audience into smaller, more specific groups based on shared characteristics. These characteristics can include demographics like age, gender, and income, as well as interests, behaviors, and preferences. By understanding these segments, businesses can tailor their marketing strategies to better meet the needs of each group, leading to more effective communication and higher engagement. This approach is essential for companies like Amazon and Netflix, which use audience segmentation to recommend products or shows that align with individual preferences. By delivering personalized experiences, they enhance customer satisfaction and loyalty, ultimately driving sales and growth.