Quantifying the target market for advertisers
Graham, C. and Kennedy, R. (2021). Quantifying the target market for advertisers. Journal of Consumer Behaviour: an international research review.
|Authors||Graham, C. and Kennedy, R.|
Marketers who want to protect their brand’s share or grow it need to know who to reach and nudge with advertising. This paper uses continuous household panel data for 55 leading, advertised brands in 12 cpg categories to quantify their target market over different time frames and conditions (market type, brand size and dynamism). Results demonstrate that the customer base (brand penetration) must swell dramatically over time to maintain, let alone grow, market share. For stable brands, penetration typically doubles from its level in one quarter to a year, then again from one year to five years as brands continue to attract lighter buyers who underpin long run sales. Over five years, over a third of brand buyers are so light that they buy the brand just once, but such buyers are vital to sales and critical to growth. As well as quantifying the five-year target audience for brands across these conditions, we test the predictive accuracy of the NBD-Dirichlet as a benchmark. The implications for advertising and media strategy are detailed. The long-term lessons for targeting become clear – unless brands “target the market”, they have adopted a counter growth strategy.
|Keywords||Advertising, Target benchmark, NBD-Dirichlet, Media|
|Journal||Journal of Consumer Behaviour: an international research review|
|Web address (URL)||https://onlinelibrary.wiley.com/journal/14791838|
|Publication process dates|
|Accepted||16 Aug 2021|
|Deposited||19 Aug 2021|
|Accepted author manuscript|
Authors accepted manuscript before copy editing
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This is the peer reviewed version of the following article: Quantifying the target market for advertisers, which has been published in final form athttps://onlinelibrary.wiley.com/journal/14791838. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Accepted author manuscript
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