RALEIGH, N.C.--(BUSINESS WIRE)--Summer is prime time for entertainment, and whether it's movies, concert tickets or music, consumers are spending money to be entertained. A new Index from MaxPoint, the company that helps retailers and brands drive in-store sales with its innovative Digital Zip® technology, has identified the top cities with neighborhoods that over-index for consumer entertainment spending.
Despite slowed economic times, the entertainment industry in the U.S. continues to be lucrative. According to the MPAA Theatrical Market Statistics, in 2012, more than 225 million people went to the movies at least once, and music sales topped more than $7.1 billion.
Key Areas of U.S. Consumer Entertainment Spend
Using its proprietary Digital Zip technology, MaxPoint was able to pinpoint the top neighborhoods in the country where consumer spending on entertainment is higher than the national average. The company analyzed billions of offline and online data points, including credit card transaction data, to track purchases such as DVDs, music and online videos and concert data, among others.
The following cities have neighborhoods that scored the highest when it comes to consumer entertainment spend:
- Baltimore, MD
- Boston, MA
- Chattanooga, TN
- Columbia, MO
- Green Bay, WI
- Detroit, MI
- Los Angeles, CA
- New York, NY
The Profile of an Entertainment Spender
MaxPoint looked into neighborhoods in the Detroit and New York metro areas to determine the neighborhoods within these areas that trend the highest on entertainment spending. MaxPoint also developed a profile of the neighborhood residents, including their demographics and interests.
Within the Detroit metro area, the top neighborhoods were: Bloomfield Hills, Birmingham, Franklin, Lake Orion Heights, Orchard Lake and Troy. MaxPoint found that the spenders in these neighborhoods typically make $100,000 a year, own their homes and have college degrees. They trend high on interest in topics such as the economy, law, the government, sports and yoga. Typically, their purchases are focused in the following categories: cell phone services, department stores, insurance, mass grocery stores and women’s apparel stores.
In the New York metro area, Greenwich Village, Nolita, SoHo and the West Village are the neighborhoods that spend the most on consumer entertainment. Consumers in these neighborhoods tend to be between the ages of 35-54, have college degrees and have incomes of more than $100,000 per year. These consumers tend to spend a lot of time online reading content about business, finance, the economy, food and drink trends and sports. Based on MaxPoint’s analysis of credit card spending patterns in these neighborhoods, they spend the most in the following categories: children’s apparel stores, department stores, family apparel stores, shoe stores and women’s apparel stores.
Using MaxPoint’s ability to cull information from multiple offline and online data sources (analyzing more than a petabyte worth of data each day), entertainment advertisers can pinpoint qualified customers at scale and reach enough of them to boost their ticket sales, DVD sales or attendance at concerts, sporting events or amusement parks. And, by focusing on only the most relevant neighborhoods, the advertisers keep their costs down and their ad spend efficient.
“Entertainment continues to be one of the biggest categories in terms of where consumers spend their disposable income,” said Gretchen Joyce, COO of MaxPoint. “The key is to look at both purchase data and interest data so that advertisers have a better guide to spend their budgets on only the most responsive neighborhoods. When armed with this information, they are able to more effectively reach mass quantities of the right consumers with their messages and offers, and ultimately drive more store traffic, event attendance and sales.”
Interest Data in Action
MaxPoint used its Digital Zip technology to run hyperlocal digital advertising campaigns for several entertainment-related companies’ campaigns, including:
- A major hotel venue that wanted to sell tickets for a concert that would take place in the hotel. To help them, MaxPoint targeted neighborhoods, in and near the city, with residents who had spent money at the hotel, made more than $70,000 per year and had high purchases in the entertainment category. As a result, the campaign resulted in a click-through rate (CTR) of more than double the industry average.
- A national entertainment chain that wanted to drive foot traffic to its locations via several promotional coupons for its grand re-opening. To help them, MaxPoint targeted neighborhoods within a tight radius of the stores that over-indexed for adults, aged 25–45, with interests in gaming and entertainment purchases. The campaign produced a CTR that was four times the industry average.
About the MaxPoint Interest Index
Using its unique Digital Zip technology, MaxPoint analyzes billions of data points consumed by neighborhoods across the United States such as offline point-of-sale data, credit card purchase data, social media, videos, music, local Web pages and online magazines.
About MaxPoint
MaxPoint’s retail advertising platform drives in-store traffic for retailers and brands. The company’s Digital Zip® technology delivers the most effective and scalable hyperlocal neighborhood-level online campaigns. MaxPoint can pinpoint qualified customers interested in purchasing a product with more precision than using traditional zip codes, ultimately offering accurate neighborhood-level targeting with national reach and local results. Founded in 2007, MaxPoint has offices in New York, Chicago, Los Angeles, Atlanta, Austin, Bentonville, Cincinnati, and Raleigh. For more information visit www.maxpoint.com, follow us on Twitter @maxpoint_int, and subscribe to the OnPoint Blog.
