1) Media audiences can be divided into different segments based on demographics like age, gender, income and lifestyle/attitudes.
2) Music producers and record labels are interested in the demographics of an artist's audience because it helps them market and package the artist appropriately.
3) Companies like AC Nielsen conduct extensive surveys to develop detailed demographic and psychographic profiles of audiences that classify them into different groups based on factors like interests, media consumption habits, and attitudes. These profiles help with targeted marketing.