In the competitive world of furniture and mattress retail, getting the most out of your advertising budget is crucial. One effective strategy is to segment your targeted media purchases into distinct bands to ensure equal impression share and maximize potential returns. This approach leverages the inherent efficiency of ad engines while addressing the unique needs of different market segments.
Why Segmentation Matters
Advertising engines aim to serve impressions at the most efficient rate possible. However, simply building out a radius around your store locations doesn’t set you up for equal success across different areas. By breaking down your target markets into your top 80% of business generated and the bottom 20%, you can more effectively distribute your ad spend.
The 80/20 Rule in Media Purchases
To implement this strategy, start by identifying the top 80% of your business-generating areas. For these regions, use broader qualifiers in your advertising campaigns to maximize reach. The goal here is to capture a wide audience in areas where you already have a strong presence.
For the bottom 20% of business-generating areas, adopt a more specific approach. Use detailed customer profiles based on past purchases to target these regions more precisely. This method involves replicating the audience that has already shown interest in your products, ensuring that your ads reach potential customers who are more likely to convert.
Leveraging Historical Sales Data
To guide this segmentation process, utilize your sales data from 2020-2022. During this period, demand surged, resulting in a significant increase in new customers. Analyzing this data can provide valuable insights into customer behaviors and preferences, helping you fine-tune your targeting strategy.
Applying the Strategy Across Channels
This segmentation tactic should be applied across all digital targeting tools and even linear reach tools like cable with zone coverage. By doing so, you can ensure that your advertising dollars are spread out effectively, giving you the best bang for your buck.
For instance, when using digital platforms like Google Ads or Facebook Ads, set up separate campaigns for each segment with tailored messaging and budget allocation. Similarly, if you’re using cable advertising, leverage zone coverage to focus on specific geographic areas based on your segmentation.
By strategically segmenting your media purchases into top-performing and lower-performing bands, furniture and mattress retailers can achieve equal impression share and maximize returns on their ad spend. This approach ensures that your advertising dollars are used efficiently, reaching both broad audiences in strong markets and specific customers in emerging ones. Leverage historical sales data to guide this process and apply it across all relevant channels for optimal results.