A demographic profile is a form of demographic analysis in which information is gathered about a group to better understand the group's composition or behaviors for the purpose of providing more relevant services.
In business, a demographic profile is usually used to increase marketing efficiency. This is done by using gathered data to determine how to advertise products or services to specific audiences and identify gaps in marketing strategy. By focusing on a specific audience, a company can more efficiently spend advertising resources to maximize sales. This tactic is more direct than simply advertising on the basis that everyone is a potential consumer; while this may be true, it does not capitalize on the increased returns that more focused marketing can generate.