Do Demographics Improve Ad Efficiency?
How Demo-based Media Plans Perform within Key CPG Buyer Groups
Demographic targeting does not weight advertising exposures toward households that have more purchasing value to CPG brands, according to this latest study by Catalina Marketing. The study shows that, for a cross-section of major CPG brands, an average of just 15 percent of ad exposures reach the households that account for 80 percent of sales. Meanwhile, brand advertisers deliver 64 percent of exposures to households that account for just 2 percent of sales.
Deconstructing Demographics looks at a cross-section of American households by purchase behavior, demographics and television ad exposures to uncover the impact of demographic targeting on different purchasing segmentations.
A few highlights of our report:
- Demo-based media plans treat all buyer groups equally, no matter what their value to a brand. As a result, heavy category buyers, who spent almost five times more than the average household, received just three percent more exposures.
- Higher-value households don't get the attention they deserve. Only 36 percent of ad exposures for the average brand reached households that accounted for 98 percent of brand sales.
- Demo-based media plans deliver too much advertising to low-opportunity households. The average brand in the study delivered 30 percent of exposures to households that were inactive in their category, meaning they never bought the category or bought just one time throughout the 12-month study period.
To address these key challenges, Catalina has introduced a new purchase-based solution for digital advertisers called Catalina BuyerVision™. The new solution dramatically improves the efficiency of online campaigns by identifying key buyer audiences based on in-store purchasing and then engaging them at scale with advertising wherever they are online. In addition, BuyerVision is now available for mobile advertising, both in-app and mobile web. Advertisers are able to closely measure the in-store sales impact of their campaigns on specific buyer audiences. BuyerVision can also be integrated with in-store Catalina campaigns for greater continuity with targeted buyer audiences. For more information about BuyerVision, feel free to give us a call at 1-877-210-1917.