Research

US Census: Bad Ads But Great Information

~ K. Quesenberry ~ Leave a comment

The US Census campaign was bad marketing, but their website is a goldmine of marketing information. If you’ve never done research there, give it a try. After a little searching I found the 2008 Statistical Abstract from the National Data Book for “Construction & Housing: Housing and Neighborhood Quality.” This report contains two very useful charts “966 – Home Remodeling–Work Done and Amount Spent: 2006” and “Expenditures by Residential Property Owners for Improvements and Maintenance and Repairs by Type of Payment and Year Structure Built: 1995 to 2006.” The data in these charts could be very useful for a store like Home Depot trying to estimate potential sales and marketing expenditures.

In table 967. “Expenditures by Residential Property Owners for Improvements and Maintenance and Repairs by Type of Payment and Year Structure Built: 2006” there is more valuable data for the Home Depot marketing department. This data breaks down the amount of money spent on improvements, maintenance and repairs by the year the homes were built. So let’s say Home Depot wanted to do a direct mail campaign. With this information they could segment the campaign for the most effectiveness. According to the chart homes built from 1980 to 2003 represent $70,336,000,000, homes built form 1960 to 1979 $30,790,000,000 and $34,950.000,000 for houses built before 1960. Home Depot could save production and postage expenses by sending the mailing only to the households most likely to perform improvements, maintenance or repairs.

Another useful table in this report is Table 966. “Home Remodeling–Work Done and Amount Spent: 2006.” This chart helps us narrow down the types of remodeling jobs people are performing. For our Home Depot direct mail campaign this could help them decide on the most relevant promotional message. By comparing the remodeling project categories by number of households amount of money spent we can isolate the projects with the most profit potential. The top remodeling projects by type are: 1 – remodel bathroom, 2  – carpeting, 3 – remodel bathroom, and 4 – roofing. The highest spending per remodeling project is 1 – roofing, 2 – remodel kitchen, 3 – remodel bathroom, and 4 – add deck/porch/patio. By combining these numbers we end up with remodeling a kitchen or bathroom as an attractive promotional message for the campaign. This information could further be combined with additional secondary data about the seasonality of remodeling projects to further pinpoint Home Depot’s marketing campaign.

We all pay for this data to be collected we might at well start using it. What can you find for your business or research project?

Creativity Beats Media In TV ROI

~ K. Quesenberry ~ 1 Comment

If you merely glanced over a recent article in Advertising Age you may have thought it was about media buying. The first sentence of the article tells us Demographics have almost no effect on whether TV ads produce sales, and consumers’ purchase history is the most reliable predictor of success. Okay I say, but how do I buy TV media based on purchase history?

The article goes on to tell us that ads produce a greater sales lift the closer they come to the purchase decision. Again, can I buy TV ad slots based on my target’s purchase decisions? We do learn however that we shouldn’t shy away prime time placement and higher prices because in general prime time’s sales return on media investment trumps other day parts. That is something we can use – keep buying prime time.

But you may have read this entire article except for the last sentence and missed the most important conclusion highlighted by TRA President Bill Harvey at the Advertising Research Foundation 360 Measurement Day Workshop in Chicago. His company has been pairing data from set-top TV boxes with retail loyalty-card purchase data since 2008.

There are limits to what media choices alone can accomplish. The ads themselves matter most. Mr. Harvey said, “Data suggests 65% of TV ROI is attributable to the creative and 35% to the media.” Now that is something I can control. The worst mistake of all is to spend all your time nitpicking media choices and neglecting to invest in choosing great creative.

Why this lopsided emphasis? Maybe because it was a media workshop and not a creative conference.