Was my targeted advertising program effective?
Did my advertising expenditure pay off?
Case:
Digital Camera Company worked with NPD to identify five underperforming markets, and then purchased radio spots to try to boost sales in those markets. Did it work?
Findings:
Yes, the advertising program grew sales by $750,643 by gaining incremental sales in four out of five markets.
Action:
Digital Camera Company determined that a targeted marketing approach worked and expanded the program.
GOAL:
To increase sales in markets identified as underperforming (compared to the total U.S. overall average estimate of $3,000 per store) by running targeted radio spots at a cost of $10,000 per market.
Digital Camera Company - Advertising Results
March 2008
Total Incremental Sales Achieved: $750,643
| Markets | Population | Expected $/Store | Actual $/Store | Incremental Sales/Store | # of Stores | Total Market Incremental Sales |
| Baltimore, MD | 2,854,085 | 3000 | $2,477 | -$523 | 172 | -$89,956 |
| Houston, TX | 5,726,124 | 3000 | $4,425 | $1,425 | 282 | $401,850 |
| Minneapolis-St. Paul, MN/WI | 4,400,412 | 3000 | $3,589 | $589 | 279 | $164,331 |
| Phoenix, AZ | 4,757,774 | 3000 | $3,889 | $889 | 258 | $229,362 |
| Sacramento-Stockton-Modesto, CA | 3,993,138 | 3000 | $3,256 | $256 | 176 | $45,056 |
| Total: |
$750,643 |
For more information, please contact Charles Camaroto at 866-444-1411 (contactnpd@npd.com).
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