Post Type:post Hardware & Home Improvement on Cable | Viamedia

Our second category blog focuses on Hardware & Home Improvement (H&HI) which over the past four years (2013 – 2016) represents the 6th largest advertising category here at Viamedia at 5% of total advertising sales (excluding political.) Unlike Viamedia sales in general, which are more or less flat throughout the year, we find two distinctive peaks for H&HI – in May (11.6% of total year ad sales) and September (10.2%.) Not coincidentally, these are very popular months to begin new home projects. December represents one of the lowest spending level months for the category – a time better spent celebrating the holidays and hunkering down for a long winter (January and February being the absolute lowest advertising months):

 

Hardware & Home Improvement

 

A Multitude of Cable Networks

Viamedia is in a unique position to offer at least two levels of targeting for the H&HI industry. Our 130+ local cable zones represent an efficient way for hardware and home improvement stores to reach their best customers residing in key trading areas. And we also insert on dozens of highly targeted cable networks that attract prime prospects for practically anything and everything sold in these stores!

In looking at our internal sales records over the past four years, we found literally dozens of cable networks that were utilized by manufacturers and local stores within the H&HI category.  And on an absolute dollar basis, the ten most popular cable networks** accrued 62% of all ad dollars targeted by the category.     (**HGTV, FXNC, ESPN, FOOD, CNN, USA, DISC, TNT, HIST, TBS.)

But there’s another way of looking at cable network ad spending by way of indexing (see chart below.) Here’s a concrete example – the Do It Yourself Network (DIY) accrued 1% of total H&HI category ad dollars, a figure far below that of HGTV (13.3%). But relative to DIY’s Viamedia company-wide advertising share (a mere .22%), we see the relative importance of the network for the category, indexing at 471 (i.e., {1.03% / .22%} * 100). In other words, the DIY Network attracts H&HI advertising at a rate 4.7 times higher than what the network attracts across all categories company-wide. Below is a list of the 20 highest indexing cable networks – note how many are sports oriented:

 

Hardware & Home Improvement

 

At the national level, we looked at the FY 2016 advertising activity for several large companies operating within the H&HI category, including the ubiquitous retail chain centers, Home Depot and Lowes. We ran a series of queries against the 20 Million STB database from comScore which merges TV set tuning with commercial ad placement, and what we found is a rich array of cable network selections. For example, Home Depot Centers across the country utilized 71 cable networks, airing a remarkable 73,000 cable spots – that comes to an average of 1,400 national cable spots per week! And in total, Home Depot devoted 84% of their national TV dollars to cable, dwarfing the broadcast network level of 16%:

 

 Hardware & Home Improvement                                  

Around the Clock Advertising

National advertisers within the H&HI category disperse their cable ad investments around the clock, twenty-four hours a day to ensure maximum (efficient) reach. In the chart below, we found that four out of the five major advertisers devoted at least 60% of their spots outside of the primetime evening hours of 6pm – 12 midnight. Even the overnight time period of 12 midnight to 6am received anywhere from 16% to 25% of all spots across a variety of cable networks:

 

Hardware & Home Improvement

The Local Cable Advantage

Viamedia is in a unique position to offer at least two levels of targeting for the Hardware & Home Improvement industry. Our 130+ local cable zones represent an efficient way for retail establishments to reach their best customers residing in key trading areas. And we also insert on several highly targeted cable networks — such as DIY and HGTV — that attract viewers who engage in a myriad of home projects

Written by Jonathan Sims
VP of Media Research, Viamedia