Targeting Consumers More Effectively in The Digital Age

Region State DMA Neighborhood

Geo-targeting: Reaching more of the right consumers where they live

In television, the DMA model treats everyone that lives in a market equally. Client ROI would be greatly increased if television had

direct mail targeting capability.

Target reports that 85% of sales come

from within a 15 minute drive of a store location

Today’s retail marketers increasingly focus on geo-targeting by retail location

Atlanta Target Store Locations

Today’s marketers increasingly focus on sales and lifestyle targeting

Geo-targeting by consumer behavior

CA: Pineapple Chicago: Deep Dish New York City: Thin Crust

“Our business is inherently local with deep dish pizza popular in the mid-west, thin crust in the north east, and pineapple as a lead topping on the west coast.”

—CEO, Pizza Hut

• The ads you see depend upon your IP address

• At the zip code level of targeting, only 16% of your IP targeting impressions end up where you want them. 84% of zip code targeted ads miss their target

P Targeting: Accuracy:

By State 90%

Within 25 Miles 60%

By City 50-80%

By Zip Code 16%

Yahoo message to advertisers: “Please note that geo-targeting accuracy is not guaranteed and may vary depending on various factors, including the level of targeting selected.”

VPN IP Address

18 miles away

Work IP Address

35 miles away

WiFi IP Address

212 miles away

Ad Intended for Quincy, MA

The data challenge: I.P. geo-targeting is unreliable

A  Look  At  IP  Geoloca.on  Accuracy”  12/10;  h:p://wha.smyipaddress.com/ip-­‐lookup;  Yahoo.com    

•  Romney selected traditional news and high reach cable networks–75% on 5 networks–40% on CNN and Fox News Channel alone

•  Obama selected networks that specifically appealed to swing voters locally–75% on a dozen entertainment and sports networks and in fixed programming

October 2012 Cable ad campaigns Cleveland, Ohio

Targeting matters

Source: NCC Cubes data Oct. 2012

Target consumer lifestyles, media behaviors and purchasing–in addition to age and gender

Income Lifestyle Ethnicity Product Sales

Consumer targeting: Putting your ad in consumer–dense programming environments

Families On The Go Affluent Men Outdoor Enthusiast

What tools are available to maximize consumer reach?

Every brand has a unique consumer profile. There are thousands of programs on cable and broadcast. How do you select the right programming to reach your well defined consumer?

Fortunately companies like Nielsen, Scarborough and MRI provide research products that enable advertisers to develop ad campaigns using the programming that uniquely appeals

to target consumers.

Example: Reach adults 25–54 100K+ Household Income

The right networks daypart and programs for your brand in every market on cable, on

broadcast in syndication.

Source: NCC Cubes data Oct. 2012

Targeting within a DMA—Cable system level targeting as an example

Washington DC DMA

Source: Includes coverage area; 2010 AMS CableTrack; All data and geographic representations are subject to qualifications available upon request. All Rights Reserved. National Cable Communications L.L.C.

There are 28 cable systems in DC–each with it’s own consumer profile.

In this example only 7 cable systems had significant consumer concentrations to support being recommended to this European import dealer association.

These systems reach 46% of all homes, but their delivery of core targets is considerable.

•  200k+ Homes: 62%

•  This European import’s car registrations: 70%

Recommended Systems

Multi-screen world

76% of consumers in digital homes have another device in their hand while they’re watching television.

Multiscreen targeting: The same geographic focus applies to every screen

5 questions for your television or online media rep to ensure more effective targeting in the digital age.

•  What are the opportunities to target specific geographies within your universe?

•  What research is available to support consumer targeting recommendations?

•  Can you target by retail location, lifestyle or product sales?

•  Will you assemble consumer-dense networks, dayparts and content for my brand’s? Television campaign? Online Too?

•  Can you align my proprietary sales data with targeted geographies–and adjust programming or content to hyper-local tastes?