The Challenge
Research conducted in 2021 led Tiger Balm USA to a new, more diverse consumer target that could be marketed to via an urban strategy. Rather than blanketing the nation’s cities with out-of-home ads, the team decided to conduct additional research for proof of concept.
The Strategic Solution
Designing the Test
Using a statistical algorithm that paired markets based on monthly sales trends and distribution, market pairings were then adjusted by demographic diversity, urbanicity, physically demanding occupation rankings (a key characteristic of the new consumer target), and the number of outlets that would have in-store media during the test timeframe.
Three market pairings were then selected, and one within each randomly assigned to receive digital out-of-home (DOOH) media while the other will receive no DOOH media.
At the end of the test, markets with DOOH media will be analyzed against those without to determine the incremental impact on sales the media has, as well as if the impact warrants a rollout to other markets (e.g., drives a return on investment).
Determining the Surfaces
The E29 and the Tiger Balm USA clients selected which DOOH surfaces made the most sense to air the advertising. Based on the new consumer target, the team decided the best approach was to focus on transit locations, gyms, and sporting/entertainment venues.
The Impact
DOOH drives ~7x in incremental weekly sales in the markets where it executes (vs markets with no DOOH media).
In order for DOOH to drive a return on investment (ROI), it is crucial to find the right budget level that aligns with your product's sales cycle and market size. For example, specific to Tiger Balm, spending in large and medium markets should be carefully considered based on their unique sales cycle.
Small markets are generally not recommended due to low sales volume, while mega markets may require a significant budget, which might not be feasible for all clients. However, if the client has the budget, a large market could be worth the investment.
In general, determining the right market size based on budget and campaign goals is essential to the success of your DOOH campaigns. Each product and market may have different thresholds, and understanding these nuances is key to optimizing your advertising spend.