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Now you have the ability to geographically target your audience at a micro-level, but you have to figure out where they are first.

If you advertise in markets or areas where there’s a low penetration of potential customers, it can harm your campaign and quickly waste your advertising budget. That’s why determining the regions, local markets or trade area to promote a retailer, product or service is key to efficiently reaching the greatest number of your target consumers. Scarborough offers the capability of ranking regions or local markets against your target consumer group. Then we can illustrate the penetration of the market for the product or service and how the market compares to the U.S. population. You can also create trade areas at the local market level to quickly pinpoint the greatest opportunity.

The Challenge: 

An Atlanta advertising agency was working with a local dealership to secure incremental advertising dollars from a regional dealer association. They needed to prove that the Atlanta market had a greater number of potential car buyers than the surrounding markets. Within the advertising campaign, they also wanted to focus much of the advertising budget on the specific trade area that would provide the highest percentage of their target consumers.

Applying Our Insights: 

In order to secure additional advertising dollars, the agency created a report to show that Atlanta was in the top region for car buyers. They also created a DMA penetration report that illustrated Atlanta was among the top South Atlantic regional markets for potential car buyers.

Potential New Car Buyers in the South Atlantic Census Division
DMA Potential New Car Buyers
Washington, D.C. 12%
Miami/Ft. Lauderdale 12%
Atlanta 11%Atlanta ranks 3rd for potential car buyers in the South Atlantic Census Division
Tampa/St. Petersburg 9%
Baltimore 7%
Orlando/Daytona Beach/Melbourne 6%
West Palm Beach/Fort Pierce 4%
Raleigh/Durham 4%

When creating the media campaign, the agency profiled potential car buyers’ automotive behaviors and found that the majority of adults traveled less than 20 miles to purchase their last new vehicle.

With Scarborough, they built a trade area based on the zip codes that fell within a 20-mile radius of the dealer. Then they were able to efficiently utilize their budget both by placing billboards on the roads most traveled within the trade area and a targeted direct mail campaign.

Number of Potential Car Buyers for ABC Honda Top Zip Codes (Top 5 Residential Zip Codes*)
Zip Code Potential Car Buyers
30040 12,600
30043 9,800
30064 11,500
30093 11,600
30315 15,300
*Within 30 Miles of ABC Honda

We also helped them conduct a sponsorship analysis, where it was determined that their potential car buyers were more likely to attend high school sporting events. Our trade area analysis made it easy to select the high schools within their core geography.

The Results: 

The ability to prove Atlanta was the top regional market for potential car buyers enabled them to secure incremental advertising dollars from the regional car association. And geo-targeting within the trade area allowed the agency to effectively spend the advertising dollars on targeted campaigns that reached their core potential buyers.