Real Examples of Targeting for Outdoor Marketing
Example 1: Big Box Grocer
A competitor was going to open a new store within proximity of one of our client’s stores. Rather than just send out a targeted front door advertisement to every home within a certain radius of the store, here’s what we did in response:
We drew a radius around both stores, and looked at the area where they overlapped. Why? Because for grocery stores, most people shop based on proximity first, and other factors second. So we’re probably going to lose a lot of people who live right next to the competitor’s new store. It’s not worth the budget to go after the handful who might still come to our store.
But where the radiuses overlap – this is where the competition will play out.
Within that overlapping zone, we looked at which neighborhoods spent the most money at wholesale stores – a very particular subset of grocery shoppers. Within that we found about 100,000 households.
That’s still a lot of mailings. So, we moved to phase 2.
Narrow it down with advanced targeting
Which demographics reveal our most likely customers in this scenario? We cut the 100,000 households in half, selecting the 50% who spend the most money at wholesale type stores. This makes financial sense from an ROI perspective. Go after the big fish.
Then, we narrowed that down even more by selecting households with families. Why? Because among the big spenders, they will spend even more simply because there are more people in the house.
So now, we have a hyper-specific audience target to create a front door marketing campaign that is highly likely to generate strong and long-term return on investment:
- located within a certain radius
- located within a zone overlapping the radius of the competitor’s store
- neighborhoods within that zone that spend the most on wholesale
- top 50% of spending
- households within those neighborhoods
households within that group who have kids
We could even narrow it down to families with two or more kids, pets, multi-generational, etc. Much of this depends on the budget you want to spend and how aggressive you want to be.
And even that approach depends on the neighborhood targeting method – using blocks, not ZIP codes.
Example 2: QSR
In this example, it was a QSR chain that was having trouble reaching customers using Valpak. They wanted to achieve better targeting that focused on certain types of households who were within a certain distance of their various franchise locations. Here’s what we did:
Neighborhoods vs ZIP codes
Hopefully you’re catching on already. We don’t just use ZIP codes. This client originally wanted to focus on ZIP codes, which for one location meant 15,000 households. That was too big for their budget.
So, we broke down that ZIP code into neighborhoods within a certain distance to their store. Why? Because another reason ZIP codes don’t work is that franchise locations are not all located in the exact center of a ZIP code. So you might mail to a household in a particular ZIP code, advertising for a particular store location, when there is actually another franchise located closer, though in a different ZIP.
That’s a huge targeting failure, because it means a customer will show up to the wrong location and not get the deal they were expecting.
Narrow it down with advanced targeting
Who really likes to eat the food served by this particular QSR? They decided they wanted to focus on 18-24 year old men who like hot dogs and sausages. They chose this age group because if they can excite them about their menu at young ages, they’ll be more likely to become lifelong customers. They didn’t want to send front door marketing to retirement communities.
We have data showing average dollars spent on beer, hamburgers, and hot dogs — the relevant demographic for this customer — across each neighborhood. Again, we have data on over 600 very specific demographic categories.
So, we were able to narrow it down to specific households within the neighborhoods closest to the location, and then send out the front door advertising.
See Your Customer Data Today for Free
We can create a data set for you just like in these examples – for free!
We’ll map out the targeting after you answer a couple questions. Then, you get a set of customized data, which you can use to impress your boss and then use it however you want. It’s yours to keep!