News

Catalina report: Simple demographic targeting on national advertising misses the mark

BY Michael Johnson

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:

  • Demo-based TV 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 3% more exposures;
  • The average brand in the study delivered 30% 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; and
  • A majority of sales volume falls outside of common demographic targets. More than half (53%) of sales for the average brand fell outside of the demographic target (households headed by women between ages 25 years and 54 years).

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.

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REAL ESTATE

CKE plans to expand Hardee’s in Minneapolis market

BY Staff Writer

Carpinteria, Calif. — CKE Restaurants is planning to expand its Hardee’s footprint in the Minneapolis area over the next several years and sees the potential to develop more than 59 new restaurants in the market.

“We are excited to expand in the Minneapolis area, and we’re now looking for experienced multi-unit operators to join the brand,” said Jim Sullivan, CKE’s senior VP domestic franchise development.

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News

Target brings back summer ‘Black Friday’ sale

BY CSA STAFF

MINNEAPOLIS — Target is once again bringing Black Friday to the summer, this year expanding the sale to two full days, July 20 to 21. Target will also hold its first-ever Summer Cyber Week sale from July 22 to 28, featuring daily deals on Target.com for must-have products such as electronics, apparel, baby gear and more.

“Over the past two years our Black Friday in July sales have been a big hit with our savvy guests who appreciate bargains,” said Casey Carl, president multichannel at Target. “This year, we’ve added something special by offering an extra day of Black Friday-like deals as well as Target’s new Summer Cyber Week – treating our guests at Target.com to nine straight days of savings.”

During the two-day Bonus Black Friday blowout, Target guests will find exclusive Black Friday-like deals on more than 2,000 items throughout Target.com, from toys, movies, health & beauty and more.

Guests can get an extra 10% off select Bonus Black Friday items by signing up for exclusive email offers before July 18 at Target.com/BlackFriday. Plus, Target REDcard guests who sign up have the opportunity to take advantage of select deals before everyone else on July 19.

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