The Product Demand Index: A Powerful Predictive Analytic that Helps Advertisers Understand “Consumer Context” and Improve Returns
The move to more contextually-based audience selection for display ads continues to accelerate. And as businesses face the challenge of replacing cookie-driven audience targeting, marketers are looking for proven ways to create relevant advertising that drives purchases and brand loyalty.
Contextual targeting has emerged as a powerful solution, but it’s important to explore different types of contextual targeting. Although page context has certainly been an option for targeting, understanding the broader consumer context is even more powerful. One type of advanced contextual targeting, geo-contextual targeting, allows advertisers to target audiences based on the demand generated by the context of a consumer’s immediate environment.
Peer39 partners with Planalytics
Planalytics and Peer39 have partnered to bring geo-contextual targeting to programmatic ad buying at scale. Through Peer39’s Contextual Data Marketplace, businesses leverage Planalytics’ product demand index to identify optimal times and locations to advertise in-market categories.
Knowing when to spend and when not to spend, knowing what product to feature, knowing which markets and individuals will be most receptive to messaging are critical to increasing clicks and conversions. “Context is King” when it comes to consumer spending and advertisers that leverage the product demand index on Peer39’s Contextual Data Marketplace can dramatically improve their returns.
Planalytics has seen major consumer industry clients improve performance significantly. For example, one mass merchant client saw an average sales increase of 8% where the analytics were used to target specific markets with specific products. In another example, a client used the analytics to select audiences and saw ROAS increases that were 3 to 4 times the gains captured with traditional cookie-based behavioral targeting.
Planalytics provides businesses with a proven and measurable return on investment by applying advanced statistical methods and machine learning, mountains of sales data, and years of unmatched retail demand expertise to the most omnipresent external localized influencer of purchasing – the weather.
The importance of weather in contextual targeting
The weather is the most consistent and impactful external environmental driver of demand in the consumer economy. Planalytics’ Product Demand Index goes far beyond triggers based on temperatures and other meteorological conditions, and instead, puts a consumer context around the weather.
Understanding and acting on this context has been consistently and measurably effective. When combined with promotions or layered on top of other types of audience targeting an observable “synergistic effect” occurs, and the efficacy of both optimizations is boosted.
Advertising in-market products leads to situations where sales were notably higher than the expected promotional lift and weather lift individually suggested. For example, if a digital campaign for soup has historically generated incremental sales of 5% and Planalytics metrics point to an additional 10% boost, a business may see 25% more in sales. This additional 10% over the expected lift is the synergistic effect of targeting an audience with a product message while the in-market product “tailwind” is also contributing to demand.
Accessing the Planalytics’ product demand index through Peer39’s Contextual Data Marketplace allows businesses to Identify ambient-driven in-market categories for programmatic ad buying and take advantage of opportunities where this synergistic effect can inflate returns.