How Costco’s sale ad compares with other retailers’ ads
Posted On July 16, 2021
Costco’s sale ads have become the standard for retail advertisers in Canada.
They have been shown to reach more people than their competitors’ and are also far more efficient at reaching their target demographic, according to a study released Tuesday.
The study by the Canadian Association of Broadcasters found that the ad shown to consumers was viewed on average 3,735 times on average by consumers.
That compares with more than 3,600 times by competitors and about 2,500 times by non-marketing entities.
It also shows that ads with the best demographics reach their target market at the highest rates, according the study.
“Costco’s approach is much more efficient than the competition and has more positive impact,” said Mark Tully, the president of the CBLA.
The CBLI study found that consumers were more likely to use the Costco ad when they were told it was the “best choice” for them.
It was also seen as a more effective way to reach potential buyers.
“It’s a bit of a cross between a good and a bad advert,” said CBLB spokesperson Chris Sorensen.
The ad also showed an increased level of awareness of the Costco brand, and the “crowdsourced” experience of buying from the online store, according a study commissioned by Costco and conducted by the University of Toronto.
The results of the study were presented to Costco last week.
“We are pleased to see Costco is continuing to expand its reach into the Canadian market with its ads,” said the company in a statement.
The Costco sale ads also came in first in the online search for “the best bargains” by Canadian online search engine SERP, according TOA.
They also ranked in second for the number of people searching for “best bargains,” according to TOA data from January 2017.
“The ads show Costco as a credible brand with a good brand image, and we are excited to see the ads continue to make their mark on consumers in Canada,” said Kevin O’Connor, president of marketing for SERP.
The ads are also the second-most viewed Costco sale ad in Canada behind the sales ads in Edmonton, Alberta, said toca.ca.
The Canadian Association for Broadcasters (CAB) commissioned the study, which is based on more than 2,000 sales ads aired across the country by Costco between April and June.
It found that when Costco was shown the ads, the average time spent on the ad was 45 minutes, compared to 36 minutes for the other ads.
In comparison, the ads of other major Canadian retailers showed average ads take about 45 minutes to run, said the study’s author, David Bouchard, professor at the University, University of Calgary.
The average duration of the ads was 45 seconds and the average audience was 1,800,000 viewers, Bouchad said.
“That’s an enormous increase compared to the other stores,” he said.
The report also found that Costco sales ads were shown in English and French at a rate of almost 100 per cent, compared with about 70 per cent for other stores.
The survey also found the ads were more popular among older adults and those aged 55 and over.
Costco has been testing ads with an older audience, but that hasn’t changed the demographics that people are most likely to choose from the ads to purchase from Costco, said Bouchand.
Costco is one of the world’s largest online retailers, selling more than 40 million items to consumers worldwide.
“When you see ads with that kind of impact, it really means something to the brand,” said Sorenesen.
A spokeswoman for Costco said in a news release that the company is pleased with the results of its study and has already started a new campaign to test ads with a wider audience.
Costco’s sales ads have also been shown in a variety of languages.
A Canadian version of the sales ad is also in English, Spanish and Italian.
In addition to the online ads, Costco has also started testing its own ads, which can be seen in the store’s website.
Costco also has a “buy now” option, where people can pay to see ads and receive coupons and promotions for items.