This is a really good question. iMashup is a "niche" app because it never became a mainstream product like we hoped. So the way we've marketed it is by announcing it on our Facebook page (100,000 likes) and Twitter. We also sent out 2 newsletter announcements because we already had an active community.
I think the best way to market something is to create a video demonstration that has the potential to go viral. It happened with Samplr, an iPad music app that had a brilliant video that got blogged by lots of different music sites: http://www.samplr.net
If I was launching a niche app from scratch, I would make a kickass video and send it to every blog and influential Twitter person I could find... it's possible they could help you launch it.