Pioneer NewWays to FindGrowth Audiences 1Preparing to win the battle forCarat has been a pioneer in the media industry for 60 years, helping theworld’s most iconic CPG brands to grow. At every inflection point in themedia landscape, we backed the craft of communications planning tomake a transformative impact on brands’ top and bottom lines. As mediachanges again, Carat leads CPG brands into the Algorithmic Era. Pioneer NewWays to FindGrowth Audiences Mass targeting may be cost-effective, but is itthe best strategy? Is my audience segmentationgood enough? Which segment will drive thenext phase of growth? Should I really spend thatmuch connecting with people who reject mybrand? Does targeting even matter anymorewhen algorithms seem to run the show? we have radically transformed how we lookinto audiences, pioneering a new way to findgrowth opportunities. In the next pages, we will introduce you toGrowth Mapping, a unique audience approachalready adopted by leading CPG brands thatplaces commercial growth at its heart. We willcover how it works, why it makes the most ofyour media investment, and how to get startedtoday. At Carat, we know these questions are topof mind for CPG marketers when planningmedia campaigns. We think about them,too. A lot. We think about them so much that Consideration customreach. Growth today isnot just about scale, it is aboutconnecting with audiences andcommunities who genuinely care.Instead of chasing broad visibility,CPG brands must focus onbuilding deep relationships withinpassion-driven communities. Thismeans moving beyond traditionaltargeting to identify key momentsin consumers’ lives when brandmessages will have the greatestimpact. the most effective approach.Claims that targeting is dead aremisleading and factually wrong.While broad targeting has itsplace, more specific audiencestrategies remain crucial to avoidoverreliance on one-size-fits-all,autopilot solutions. Challenging the mediaorthodoxy in the CPGindustry For decades, the CPG industryhas relied on mass reach andpersonalization at scale as keygrowth drivers. The belief thatbroader exposure leads to higherimpact has shaped strategiescentered on wide distribution,high-frequency media, andcategory penetration. Influencedby thinkers like Byron Sharp,brands have prioritized mentaland physical availability to ensureconsumers frequently encountertheir brand. This has led tomajor investments in nationaladvertising, retailer partnerships,and omnichannel presence. Recent studies have documentedthe declining effectiveness ofmass reach advertising. TheWorld Federation of Advertisershas found that 37% of marketersbelieve awareness-buildingactivities have become lesseffective over the past five yearsdue to ad clutter, avoidance,reduced reach, and decliningtrust.1McKinsey has also reportedthat mass advertising strugglesdue to fragmented mediaconsumption, reduced trust, andmultitasking consumers, leadingto weaker impact.2 This doesn’t mean reachingfewer people, it means beingmore relevant to more people. Toachieve this, we have developedGrowth Mapping, a uniquedata-driven methodology thatbalances scale and relevance.By moving beyond basicdemographic segmentation,Growth Mapping helps CPGbrands drive both short-term gainsand long-term consumer loyalty. In today’s digital landscape, asbrands increasingly use algorithmsfor budget optimization andautomated content, majordigital platforms continue topromote mass targeting as At Carat, we advocate fora shift frombroadreach to Context and lifestyles everywhere,engineering trends that eraselocal uniqueness. This patterneven affects music, with studiesshowing lyrics have becomesimpler and less varied over time.7 Outdated segmentationmodels restrict CPG growth Byron Sharp’sHow Brands Growmade reach the foundationof brand success.3While hisprinciples remain valuable in2025, they were developed ina simpler time: between 2012and 2024, global MarTechsolutions increased by 3,000%,4while marketing budgets as apercentage of revenue droppedby 24.8%.5 Simultaneously, advances intechnology and the proliferationof media channels havefragmented audiences, whonow expect more personalized,meaningful experiences.Mark Ritson’s emphasis onsegmentation, targeting, anddifferentiation (in conjunctionwith distinctiveness)8has offereda balanced approach to Sharp’sreach-first model. Together, theirideas suggest brands must evolvetheir strategies, blending broadexposure with targeted relevancefor long-term success. Consumers now see morethan 5,000 ads daily,6makingdifferentiation more importantthan ever. But instead of standingout, brands are blending in.Global marketing pushes thesame aesthetics, slogans, Context Yet, despite advancements inaudience segmentation, manybrands still rely on outdatedmethods, such as demographicsegmentation and attitudestoward a category. Gen Z Tribe: Carpe DM-ers are much more alikeBaby Boomer Tribe: Established Culturals, than toGen Z Tribe: The Shakers TRADITION