Reaching the Missing Consumers

20 July 2012 | Blog

In “Study: Many Marketers Missing Key Consumers,” MediaPost reported recently on a study from Catalina Marketing about how CPG brands that relied on traditional demographic-based media plans were missing a major opportunity. As they note,

“nearly two-thirds (64%) of the ad exposures delivered by advertisers are reaching households that account for only 2% of sales. Meanwhile, only 15% of those exposures are reaching the consumers that account for 80% of sales.”

Because of the focus on traditional demographic profiles instead of targeting specific audiences, marketers are limited to inefficient ways of reaching their potential customers.

Right now, advertisers unfortunately do not have access to the household addressability capabilities at the scale that would be needed to reach the specific households that are actually purchasing their products. But that does not mean that there aren’t ways to go beyond the simple traditional demographics of age and gender most advertisers are currently limited to. For example, aiming kid-oriented product ads at households, or even just cable zones, more likely to contain children could help boost those sales. Even better, using more sophisticated targeting than simple demographics allows different ads to be aimed at different audiences. After all, everyone needs cleaning supplies, but parents will respond to a product that cleans up after little muddy feet, while young singletons are more likely to use it to remove the spilled wine from last night’s party. Properly used, targeted TV advertising delivers more relevant ads to consumers, making them more effective than ads aimed only at traditional demographics.