New York -- Simple demographic targeting does not weight advertising exposures toward households that have greater purchasing value, according to a study by Catalina Marketing released Monday. The study shows that, for a cross-section of major consumer brands, an average of just 15% of television ad exposures reach the households that account for 80% of sales. Meanwhile, brand advertisers deliver 64% of exposures to households that account for just 2% of sales.
"We undertook this study at the request of customers who wanted to better understand how demographic targeting improved delivery against their most valuable buyer segments," stated Todd Morris, executive VP for Catalina. "Our findings show that demo-based targeting significantly under delivers against the most valuable buyer groups. Across $415 million in TV media spending by 10 mega-brands, ad exposures were delivered to every buyer audience in proportion to its size of population, not its value to the brand or the category."
Among important study highlights:
According to the report, advertisers have relevant and actionable insights than demographics by which to target consumers on a mass scale. Among these new models is purchase-based audience buying, in which actual shopper data is used to determine the consumers and buyer audiences that receive advertising from brands.