More and more people choose to watch television online through online video-on- demand services. For media corporations, such as the Modern Times Group (MTG), this means that video-on-demand will become an increasingly important source of revenue. Because video-on-demand is an online service, advertising products offered therein are in competition with other online advertising products. Currently, MTG’s video-on-demand advertising products are the same as on regular television, meaning they haven’t yet taken advantage of any advertising product development opportunities made possible by Internet technology. The purpose of this thesis is therefore to determine what MTG’s strategy should be to improve the competitiveness and revenue of their video-on-demand advertising products, and what key concerns need to be addressed in order to realize the determined strategy. By request of the commissioner, MTG, possible uses of segmentation to achieve the strategy are studied. The methods used to collect data include multiple interviews both at MTG and at their current advertising customers, as well as web analytics and a questionnaire. Both qualitative and quantitative analysis was used to answer the research questions. Findings suggest that MTG should strive to improve the engagement of their advertising products, through the use of contextual segmentation and self-segmentation. This goes against the current trend in online advertising, where segmentation is primarily used for ad targeting. The reason for not adhering to the trend is that MTG’s advertising customers operate in a television mindset, where ad targeting is of a very limited nature and engagement is of greater perceived value.

Social media are online accommodations where users can interact with other users, which has become a phenomenon that has grown and completely exploded over the past decade. Companies are well aware of this and has invested a large amount of resources in order to establish a better contact with their customers. Companies have several different fields of applications with social media such as gathering information, promotion, communicating with customers and reach out to desired audience effectively. Millennials are the generation who most frequently use social media and also grown up during the phenomenon's development. Previous research has shown that companies have had difficulties in reaching out to the millennial generation. This thesis purpose is to gain a deeper understanding of how companies can use social media to facilitate the segmentation process and effectively reach out to the millennial generation. Therefor two research questions have been established. The two research questions have been answered with assistance from relevant theory and research in the subject area. A case study was applied for the study, where the data was gathered from two focus groups discussing the social media platform Facebook. Each focus group consisted of eight participants within the millennial generation containing basic knowledge in marketing. The study’s result indicates millennials to follow (and thereby self-segment themselves) influential profiles they have a personal interest towards. However, Facebook is not the platform where the millennials follow these profiles. The study also indicates the best way to capture millennials interest on Facebook is through short, humorous videos with an interest capturing beginning. The study’s results also show millennia’s have a low interest in interacting with companies on Facebook. / Sociala medier är onlineplatser där personer kan interagera med varandra. Detta fenomen har vuxit i en accelererande fart under de senaste decenniet och fångat stort intresse hos företag som lägger massiva resurser på att få en bättre kontakt med sina kunder. Företag har åtskilda användningsområden av sociala medier, som till exempel att samla kundinformation, marknadsföra sig, kommunicera med kunder och att nå ut till en önskad målgrupp. Millennials är den generationen som flitigast använder sociala medier och har växt upp under fenomenets utveckling. Tidigare forskning visar att företag har haft svårigheter med att nå ut till millennial generationen. Denna uppsats syfte är därför att ge en djupare förståelse om hur företag kan använda sig av sociala medier för att förenkla segmenteringsprocessen och nå ut till millennial generationen. För att få en djupare förståelse inom område, har vi formulerat två forskningsfrågor. Forskningsfrågorna har i sin tur blivit besvarade med ståndpunkt i relevant teori och forskning inom området. Studien utfördes som en fallstudie, där informationen samlades in från två fokusgrupper som diskuterade Facebook. Vardera fokusgrupp bestod av åtta deltager inom millennial generationen, med grundläggande marknadsförings kunskaper. Studiens resultat indikerar på att millennial generationen följer (och där igenom själv-segmenterar sig själva) inflytande profiler de finner ett personligt intresse för. Dock är Facebook inte den plattform de använder för att följa dessa profiler. Vidare indikerar studien att det bästa sättet att fånga millennial generationens intresse är genom en kort, roligt video, där något intressant händer under de första sekunderna. Studiens resultat visar även att millennial generation inte har något större intresse av att interagera med företag på Facebook.