• McKenna Sweazey

Advertising to Households with Children?

Households with children are a prime advertising demographic for some advertisers: toy manufacturers, snack companies, e.g., anyone looking to target mothers who disproportionately determine the spending of CPG budgets across households. And it makes sense to combine that information with household income. If you’re selling lower-priced or store-brand goods, finding a sweet spot of middle to low earners will drive ROI on your ad spend. And if you’re selling higher-priced groceries, having your ads only hit high-income households seems like an advantageous way to direct your ad spend.

BUT. Are these segments accurate? Not really! Particularly if you're looking for High-Income families, the average accuracy across the providers we looked at was 14%. While the accuracy increased as income thresholds decreased, $50-$100k was 26% accurate and under $50k %35. This still leaves a lot of room for wasted spend when buying these demos' data segments!

So how do you avoid spending money on those records that aren’t in your target market? It’s simple! The easiest way to improve your targeting is to use Truthset Scored segments, available wherever you buy 3rd party segments, like LiveRamp Data Marketplace, Adobe’s AAM, Lotame, The Trade Desk, Xandr, AdSquare, Salesforce/Krux, etc.

Truthset Scored segments only include the records that meet a threshold for accuracy, meaning we’ve removed the IDs least likely to be the purported attribute of the segment, in this example, IDs of Household Incomes combined with the presence of children. This leaves only the more validated IDs for advertisers to run their impressions against.

If you have any questions about how you can improve the ROI of your marketing with independently validated audience segments, contact us.

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