Data Technology & Weather Insight

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Data Technology & Weather Insight

EDITOR’S LETTER:

Welcome to WeatherFX! This brochure has been designed to introduce you to the concept of using weather data combined with industry-leading technology and analytics to really understand consumer behaviour and deliver relevant, targeted messages. Even the most minor changes in weather affect consumer buying habits and by enabling you to adapt your commercial message in real-time and at a hyper-local level, WeatherFX delivers results. The platform assists you in delivering targeted promotions in-line with current and forecasted weather conditions,as well as allowing you to deliver more contextually relevant weather-related content on your own media properties. WeatherFX helps you to direct your advertising spend efficiently and delivers demonstrable results. It offers a unique opportunity for retailers and we hope that you enjoy this introduction. Please contact us if you would like to discuss how WeatherFX could impact your business. Best regards,

Lindsay Wiles Strategic Director, WeatherFX The Weather Channel Global Media Ltd For enquiries, please email [email protected], or call 020 3618 8000.

Table of Contents: GUIDING THE WORLD WITH DATA

2-3

WEATHER MATTERS

4-7

WEATHER AFFECTS SALES

8-9

WEATHERFX

10-13

WEATHERFX APPLIED

14-21

GUIDING THE WORLD WITH DATA

Airlines Worldwide Of the Top Global Banks Leading Corporate Departments & Civil and Military Aviation Top Online Portals & National TV

At The Weather Channel

Utilities

Power Marketers

Global Consumers

App Downloads

As part of The Weather Company, we are the largest provider of weather data in the world - so trusted and accurate, that our data is depended upon by leading airlines, global banks, the military, utility companies, retailers, top media properties and power marketers every day. It is our advanced science and data technologies that are at our core - we process around 20 terabytes

of data every day: wind, snow, rain, UV, pressure and humidity, which is the equivalent of 20,000 copies of the Encyclopaedia Britannica. Having access to the best weather data out there, we offer a compelling opportunity for a wide range of companies, with thousands of businesses already using weather to drive their supply and demand chains. 3

WEATHER MATTERS

Weather is the most primal, universal factor in consumer decision making

The weather effects us all every day of our lives, and often more so than we realise. In the UK we love to moan about the weather being too cold, too hot, windy or wet and it is one of the main topics of daily conversation.

what we eat to how and where we travel, and hence has a huge impact in what we consume. If you have a good idea of the weather for the coming weeks and how it will influence consumption you have a great head start when planning for demand and profit.





The weather influences everything from our mood, how we dress,

Leon Brown, Chief Meteorologist, The Weather Channel UK

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Weather Matters London MAR 2012 Our origins and expertise are as a weather data company, but we believe that ‘Weather Matters’ and extends beyond this influencing everyone everyday in the UK. The weather has a huge impact on people, how they feel and what they buy and use.

London MAR 2013

Furthermore, there is no doubt our climate is changing, weather is becoming more volatile, the new normal is abnormal! On the last weekend of March 2012, London enjoyed temperatures of 20 degrees Celsius. It was

the warmest since 1957, with a mean temperature of 7.7 degrees Celsius. Fast forward into 2013 we experienced the coldest March for fifty years, with an average temperature for the month of 3.8 degrees Celsius and snow on the ground for many parts of the country over Easter. It is not just the actual temperature but the relative temperature too. Emotion is essential in effective marketing and an Indian Summer in late September or October improves consumer sentiment as they make the most of the last sunshine of the year.

Weather is a Statement and Signal of Intent.

The following are words that came back when we searched Twitter for what consumers were saying around the phrase “Perfect weather for…” Weather is a path to something else, as most people are always planning something… planning

their weekend, planning to go jogging, planning to see friends and checking the weather first. We believe that this behaviour can hint at what the consumer might want to do before they even know it themselves. Given that weather is a selfdirected behaviour and that people

use us a lot like search, we are delivering an engaged mindset and creating a great environment for brands to serve-up useful solutions relating directly to consumer sentiment.

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Power List 2013 X

24 Retail Week 2013 Power List

The effect that the weather can have on retailers’ fortunes was acutely evident in March, when a bitterly cold period kept shoppers off the high street and forced Debenhams to issue a profit warning after snow in January. The initial cynicism that greeted the announcement became more muted as heavyweights including Next, H&M and John Lewis followed suit with their own reports that the cold weather had impacted sales.

The Weather

Unpredictable weather has been one of the biggest talking points of the last 12 months. Some of the country’s leading retailers blame cold snaps or rain for lacklustre trading updates. Influencing footfall, shopping behaviour, commodity prices, stocking decisions, delivery efficiency and retailers’ bottom lines, the weather’s power is all encompassing. The effect that the weather can have on retailers’ fortunes was acutely evident in March, when a bitterly cold period kept shoppers off the high street and forced Debenhams to issue a profit warning after snow in January. The initial cynicism that greeted the announcement became more muted as heavyweights including Next, H&M and John Lewis followed suit with their own reports that the cold weather had impacted sales. Scientists say global warming will cause weather patterns to become less predictable and more extreme in the future, so retailers must act quickly and decisively to find ways to reduce the impact the weather is having on profits. Asda certainly seems to be on the right track – its new George clothing advertising campaign quickly switches from summer clothing and swimwear in warm periods to long sleeves, waterproofs and wellies when the weather takes a turn for the worse – which it inevitably does.

Greater weather volatility is making it increasingly difficult to determine what consumers will buy when

Weather Affects Sales

The immediacy of WeatherFX enables retailers and manufacturers to anticipate and exploit complex weather conditions, targeting the consumer at precisely the right moment with contextually relevant messages that elevates campaign effectiveness.





Data is key to unlocking the power of the weather in consumer marketing. For example, it is no surprise that the summer months are key to sales of suncare and barbecues, but there are important sales peaks outside of the traditional summer season, and in the ultra-competitive UK retail sector every day counts.

David Bird, Senior Insight Analyst WeatherFX

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WEATHERFX

WEATHERFX Is The weather-intelligent marketing platform powered by real-time modeling based on geo and temporally modified weather data, client goals and historical business data.

How WEATHERFX Works

Weather Data

Relevant Message

and/or Sales and Consumer Behaviour Data

Generates automatically triggered and targeted optimised marketing communications across desktop, mobile, tablet.

Marketing Trends Enabled by Data Pre-planned National Product-driven





PLATFORM

Real-time

Weather Trigger

Hyper-local

Media Targeting

Customer-driven

Media Activation

Fixed

Mobile

Solo

Social

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Deliver Targeted Messages with WeatherFX

Oxford, UK

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WEATHERFX APPLIED

Case Study

Michaels: Owning Rainy Days With WeatherFX

Here’s an international example of how we are using weather strategies to maximise profit and help mitigate loss for our advertising partners in the U.S. The leading crafts retailer, Michaels came to us with a desire to own rainy days. We recommended they look at advertising in the

days leading up to a rainy spell, as previous customer data told us that people prefer to visit a craft store to stock up on supplies in advance of rain actually hitting, so they are prepared for a day indoors with the kids! Michaels saw their profits rise 40% as a result of this campaign. 15

Quaker Oats: Owning Chilly Mornings With WeatherFX

85

+6.5

+3.4

+13.5

90 63 51 45

Aided Brand Awareness

Brand Favourability

44

48

Purchase Intent

49

Statistically Significant Increase*

Exposed (n=179)

Control (n=94)

+4.6

Statistically Significant Decrease*

Brand Metrics Among Overall Audience

Is a great breakfast to have in cold weather

Case Study

Quaker Oats used an ‘Always On’ adaptor ad in a recent campaign to alert mums to ensure their families had a hearty breakfast. Serving up ads between 5am and 11am, our proprietary technology allows the advertiser to match up their messaging with the weather, time and/or location of each consumer viewing the ad – in this instance, below 5 degrees, the message

read: ‘When it’s cold outside’, at below 10 degrees, it read: ‘For when its cold outside’ Saying the right thing, at the right time, all the time creates greater personal relevance and higher ad effectiveness. We see an improvement of 71% on clickthrough rates on our mobile adapter ads compared to a standard one-message campaign.

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Pantene: Owning Humidity With WeatherFX

Case Study

Based on the insight that bad weather gives women ‘bad hair days’ we worked with Pantene across multiple platforms when launching their Pantene Pro-V Smooth products in the US. Specific data from TWC pairs the location and climate of the individual to allow for highly targeted advertising.

P&G’s Pantene decided to ‘buy’ the humid weather condition – so on a humid day, a woman checking her Weather Channel app would be greeted by the sticky forecast and an ad for a frizzy-hair taming product. When a woman checks the weather in a hot and humid location, it’s

time to introduce her to the new Pantene Smooth. Alternatively, consumers in areas experiencing low humidity would be shown an ad for their ‘Volumising’ product.

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© 2013 The Weather Channel