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Using data to optimise their TV investment

This project has been a huge success. The work we undertook has radically enhanced our targeting ability and we now understand how to reach our customers better than ever. The success of the project is not down to one individual, but a truly effective tripartite relationship between Argos, Sky and Mindshare. We’re looking forward to seeing how the success of this project can be developed further.

Nicki Brown, Advertising Controller at Argos

This project has been a huge success. The work we undertook has radically enhanced our targeting ability and we now understand how to reach our customers better than ever. The success of the project is not down to one individual, but a truly effective tripartite relationship between Argos, Sky and Mindshare. We’re looking forward to seeing how the success of this project can be developed further.

Nicki Brown, Advertising Controller at Argos

Argos

Using data to optimise their TV investment

Ever since the launch of commercial TV, marketers have shared a common desire to answer the question: “Who watched my TV ad, and who responded by buying my products?” A question retail giant, Argos, wanted to address.

Argos was looking to better understand its customers, and by doing so, increase the value generated from its advertising. With data being key, Argos joined forces with Sky Media to optimise the effectiveness of their TV investment, and to ultimately drive incremental revenue from their tactical TV advertising.

£
0
m
In incremental revenue for Argos
0
%
YOY increase in effective TV targeting against core audience
x
0
Average shopping value

Insight

In order to better understand its customers, Argos needed to leverage the rich data set it had already built. Sky, with a viewing panel of over 500,000 customers and its ability to securely match customer data sets, was quickly identified as the perfect partner to team up with.

Sky’s viewing panel is the largest of its kind, and can be drawn on for insight including, customers’ favourite programmes and when customers watch TV. Most importantly, when Sky’s viewing data is matched with customer sales data, it’s possible to unlock and measure customers’ response to an ad campaign.

Idea

In order to tap into the true potential of the shared data sets, Sky Media proposed the following approach:

  • Match Argos customers with the Sky’s Viewing Panel
  • Strategic TV performance analytics
  • Target audience segmentations
  • Optimise TV campaign planning
  • In-flight adjustments to the plan
  • Post-campaign analysis using sales data
Activation

To start, Sky Media brought together Argos’ sales data with its own customer-viewing data to create a single source viewing panel. Using Sky’s data-matching technology, out of the 500,000 households on the Sky panel, 280,000 were successfully matched with Argos.

From this combined data, the next step was to analyse previous campaigns to gauge what genres and programmes resonated with customers and how different customer segments behave. The aim was to understand and define the relationship between Argos’ TV advertising viewing and sales, and in turn, give recommendations to optimise their TV investment in the future.

As part of this process the partnership measured the effect on sales of different spot lengths, frequency of ads and weightings for different product categories, so that each campaign element could make the greatest impact on audiences.

The real breakthrough came from the data analysis phase where Sky Media unveiled new target audiences based on more than 100 audience segmentations from audience demographics, through to programme preferences. This allowed Argos to tailor campaigns based on the propensity of the customer to shop after seeing a TV and ensure that the target audience was exposed to a relevant message in order to drive campaign effectiveness.

Results

Campaign Results

  • £7million in incremental revenue for Argos
  • 8% year on year increase in TV targeting against core audiences, as a result of improved targeting and more efficient use of copy
  • Doubled (x2) average shopping value
  • Average shopping rates nearly tripled

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