Performing Market Research
There is a common misconception about the term "niche," and how to go about finding a niche industry. You cannot simply find a keyword that is receiving a lot of traffic, does not have anybody bidding on the search term, and assume that it is a profitable "niche". There are many factors that contribute to a profitable niche (affiliate programs, supply vs. demand, industry conversions, etc.), most of which require you to conduct research and then find the corresponding analysis of the "niche" before implementing your campaign and actually promoting to this market.
In this section we are going to discuss how to find a niche industry and how you can find profitable niches or "small pockets" within industries that can then become profitable campaigns.
What is a niche market?
Before we get started on how to discover niches, we need to define exactly what a niche market is. A niche market is a group of people searching for a solution to their problem and not being able to find too many relevant results. A niche is usually a smaller component of a larger industry. This is where the advertiser can take advantage of a niche and receive low-cost and highly relevant traffic to their website. It is much easier to target the audience within a niche than the broader topic as you will be able to understand and target the needs of this audience much more precisely.