Written by 5ivecanons Staff
Marketers can now look deeper into zip codes by studying specific neighborhoods within them.
Targeting by zip code is not a new marketing tactic, but some fragmented waste still occurs anytime you market to people based on their geographic location. When you send out a message to a single zip code, you are hitting an average of 7,522 people. How many of these people are interested in your product, and how do you get your message in front of them?
Before digital zip code marketing, direct mail was a go-to method, successfully eliminating intermediaries between brands and consumers. But with direct mail came high costs due to print production, postage and fulfillment. The introduction of digital ad targeting created a cheaper direct alternative, and allowed marketers to get their messages in front of users within specific zip codes — without the cost of print. Technological growth has created advanced digital targeting opportunities that expand companies’ direct marketing capabilities.
So how does this all work?
Using the “birds of a feather flock together” concept, personas are created for neighborhoods by segmenting zip codes based on demographics, interests and purchase decisions. In addition to basic data (gender, age, race, household income), this also involves third-party behavioral targeting information from a number of sources — such as Nielsen, Visa, MasterCard and even the CDC. Our Jacksonville marketing team is able to match up online data with offline metrics, and access cumulative neighborhood purchase decisions, which reduces waste and puts brands in front of the right audience.
For example, BUBBA burger has a new line of veggie burgers that they want to market to health-oriented households in grill-friendly neighborhoods. By targeting specific neighborhoods that engage in frequent cookouts, purchase grill accessories, buy lots of produce, etc. — we can expect a higher ROI. Not everyone in the targeted neighborhoods will fit the persona; there will always be a level of waste. But this approach still guarantees that a higher percentage of the desired target market will receive the marketing messages.
Is it a perfect system? No, because certain technical obstacles can affect data accuracy. (For instance, users with dynamic IP addresses sometimes result in false geolocation information.) But direct neighborhood marketing still yields less waste than zip code marketing.
By determining which neighborhoods are above average for certain behaviors or lifestyles, 5ivecanons is reaching audiences that are far more targeted and relevant than what was once possible. Interested in learning more? Give us a call at 904-353-2900.