June 5, 2018 at 9:17 AM
Positioning is one of the most powerful marketing concepts a brand has at its disposal. (Click to Tweet!) Whether you’re a luxury vehicle designer or a value-based grocery store chain, you’ve likely spent a lot of resources perfecting and cementing your positioning, on your way to success.
You'd also have pivoted to digital, to keep your marketing up to date and to reach your consumers on the channels they prefer, spending more resources on further digitally cementing your positioning.
But your display ad campaigns aren’t playing along. You’re advertising based on behaviour, but by using behavioural ad targeting, positioning goes out the window. Are you talking to your demographic group or just to anyone who has recently visited any grocery store? Or, even worse, any food-related website?
What is Income-Based Marketing?
Definition: Income-Based Marketing enables brands to create a pro-active marketing strategy, centred around a combination of the consumer’s intent and ability to purchase. Brands can turn brand-awareness campaigns into revenue-generating campaigns, by supplementing behavioural targeting with data insights on your consumers' income and household and optimising ad targeting.
With Income-Based Marketing, brands can strategically connect with consumers who not only have an interest in their products or services but demographically aligns with the brands market position, to successfully complete the journey to customer. (Click to Tweet!)
Understanding Income-Based Marketing
Income-Based Marketing is a highly targeted type of behavioural marketing, combining behavioural data with income data. Whereas behavioural marketing is passive in that advertising includes anyone who has shown an interest or completed a set of actions, Income-Based Marketing eliminates those demographic groups that are unlikely to respond to the product or service or do not fall within the target demographic sector of the brand. The elimination of income-groups not aligned with brand strategy, and the focusing of a target audience, provides brands with an optimised audience, improving response rates and lowering wasted spend by consumers who are unlikely to transition to a customer, due to misalignment of consumer and brand target demographic.
An example of Income-Based Marketing in action
A South African grocery store chain, well known by the population for savings and the best deals, run display ads based on behavioural data. Their target audience falls between LSM groups 4 to 7, and all stores are within South-African borders. Bidding is on CPM, and with ads promising great deals, they get high impressions, a healthy click-through rate, but low conversion rate.
Ads are shown across LSM groups; thus consumers falling in groups below the chain's target are also receiving advertisements that promise great deals. Upon clicking through and viewing prices, these LSM groups discover that they are unable to complete a purchase. Similarly, LSM groups above the chain's target audience are also being shown the ads, thus accounting for the high impressions – and pushing up the costs. These groups don't respond to ads announcing savings and the best deals; thus this ad spend is wasted.
How to optimise this campaign?
Utilise Income-Based Marketing by combining the behavioural data with data on income groups, thus eliminating the additional LSM groups. Ads are displayed to consumers who fall within LSM group 4 to 7 and have shown the same behavioural traits as in the initial campaign. Now, costs will be reduced due to less wasted impressions, and click-throughs have a higher chance of leading to conversions.
Considering Income-Based Marketing for your brand? Find out more about MarketWise – the leading Income-Based Marketing tool in South Africa.