Client: Specialty Retailer
- A 10% increase in sales
- ROI ratio of $7: $1
- The Hispanic market grew from 17% of total sales to 24%
A specialty retailer in the Northeast region of the US was looking for new ways to maximize their ad spend, improve ROI and grow their customer base.
The retailer was interested in tapping into the robust Hispanic market, and wanted to determine whether a targeted bilingual television ad campaign would lift sales. They began running ads in Spanish in key markets and key times, focusing on building loyalty among Spanish-speaking and bilingual consumers in the region.
TRENDS IN THE HISPANIC MARKET
The Hispanic population continues to rise in the United States. Learn how to attract and build loyalty within this growing segment.
Our client operates across several states in the Northeast, and began their bilingual test in New York, which had the highest concentration of Hispanic customers and the most opportunity to grow within that market. At the start of the test, the New York Hispanic market made up 17% of the company’s total business.
To offer control throughout the course of the test, results were compared to Philadelphia, the second largest city in which the retailer operates.
Over the course of a four-year period, the retailer’s New York Hispanic market grew from 17% of total sales to 24%. Overall, sales increased by 10% over that time period, and the campaign ROI was 7:1, meaning for every $1 spent on advertising, they saw $7 in sales.
Those results were compared to Philadelphia’s sales. Over the same time frame with no increase in Hispanic marketing, sales in Philly remained flat.
Lift361 was also able to model what would happen if the retailer continued to invest more dollars into bilingual advertising in New York. It was determined that any increase in spend would not increase sales or ROI enough to make an impact. Lift361 recommended that the retailer instead increase bilingual ad spend in other markets.
The team looked at every DMA the retailer operates in and identified the areas where they have the strongest footing in the Hispanic market. The retailer is now engaged in testing in a second market, and is optimistic about the results.