Who responds to ads?
Like, when you run some ads, who’s most likely to buy stuff because of them?
At least in CPG, and at least in the short(ish) term, the answer seems to be YOUR CURRENT BUYERS. This is according to an NCSolutions study of 50 brands over 3.5 years.
Current buyers were from 2X to 20X more likely to respond to ads than other brand’s buyers (OBB, btw) and non-category buyers. (I’m assuming this is behavioral data, not self-reported, since NCSolutions can sync up advertising info & POS data for individual households.)
This makes sense, especially for CPG:
It’s been shown that people notice ads for their brands more than other brands.
The ads are good reminders that maybe you gotta restock.
The ads might introduce a new flavor or variant, and it’s been shown that new varieties are bought mostly by current buyers. (I mean, they already trust the brand.)
This is consistent with a long-standing theory that ads primarily REMIND, not PERSUADE.
Note the vaaaaast range across the 50 brands, tho. There are, of course, a dozen other factors at play. (Insert CAVEATS note here.)
Does this mean your ads only really talk to current buyers? HELL NO! You're becoming familiar (and hopefully liked) by non-buyers too. Who might try you or switch to you, but in their own sweet time.
But if you’re running ads for potato chips, chances are good you’ll get the best response from your current customers.
Read the whole thing at NCSolutions.com