We have seen some of the most drastic changes in consumer behavior over the last year. These shifts have brought with them unique challenges for companies, especially considering that old data sets before 2020 are unreliable and no longer viable for accurate analysis.
There is a way for advertisers to get a true grip on their best audience in this new normal, and it’s called a trade area analysis. A trade area analysis provides advertisers with consumer market data of a certain area to help them better target their ads to the right audience at the right time. Here are some ways that you can optimize your advertising strategy with trade areas.
Researching the Right Location
One of the most important aspects of business is finding the right location for your brick-and-mortar shop. Oftentimes, advertising leaders place their store in a specific location because of the volume of consumer foot traffic. While you can place your store in a heavily populated area, how do you know that this population is right for you?
With a trade area analysis, you can take the guesswork out of whether or not a location is the optimal spot for your store. This type of research allows business leaders to get a visual of the individual audiences that are frequenting a location, what time of day is the most populated, and most importantly, what time of day and how much of your target audience is visiting.
The New Customer Journey
Imagine this: you’re an advertising agency working for a large sportswear retailer that has just opened a new location. The sportswear store is located in a moderately populated area that has other retail stores and restaurants in the proximity. In order to better target your ads, you need to understand your new audience in this town.
Using a trade area analysis tool, you determine that the majority of your customers come to your store after visiting the gym across the street. After they leave your store, they head to the little cafe around the corner. Insights from the trade area analysis also show that you are getting great foot traffic numbers. In addition, you notice that the segment of the audience that should be visiting your store are going to a different location leading you to the conclusion that there’s a competitor in your midst.
Based on these insights, you launch a campaign that reaches consumers who are visiting the gym in the early afternoon. Not only this, but you also decide to reach the cafe-goers as well. Before long, visits to your store have nearly doubled because you have gathered the right data to reach your audience at the right time.
What about the competitor down the street?
Conquesting Campaigns: Surpassing Your Competition with Market Data
Because you conducted a trade area analysis you know that there is a competitor nearby that is taking a large chunk of the market in your area. With this information, you are able to see when their stores are their busiest, where their customers are coming from, and base your next moves on that new data.
You learn that ever since you opened your location, your competitor has been busy sending ads for sale items that are the best-selling products of your business. Before too much damage is done, you are able to change your strategy and send your own ads at the time that your competitor’s location is about to be busiest, with sale items of your own.
Because you were able to get ahead of the competition, you not only gained back a large portion of your audience, but were able to gain some of their most loyal customers and turn them into brand advocates.
Know Your Market with the Gravy Trade Area API
A trade area analysis driven by location intelligence is a powerhouse data solution that can take your next campaign to record-breaking heights. With Gravy APIs, you only pay for the data that you need when you need it. Our flexible data delivery options enable you to put your data to use as soon as you need it.
For information on our Trade Areas API, contact us to speak with an expert today.