We recently attended InFronts, The Home Depot’s inaugural Marketing Summit where the home improvement giant dives into consumer insights, media trends and the home improvement market. The Home Depot announced that they have rebranded Retail Media+ to Orange Apron Media, evidencing the strength and value of their brand equity. We’re excited to share insights from this exciting summit and rebranding effort to help you make the most of your retail opportunities and advertising budgets.
BRICK-AND-MORTAR
As Millennials age up, it’s not surprising that they now comprise the majority of first-time homebuyers along with Gen Z. While Gen X and Baby Boomers are backing off of home improvement, Millennials are taking more of the market.
What is surprising is they’re doing most of their shopping in-store. In fact, although Millennials shop via apps at nearly 4X the rate of Boomers, their in-store shopping behavior is almost identical. They want to go into the store and see product colors and styles in person, compare products and on-shelf pricing, read packaging, review installation instructions and ask an associate for advice to determine project complexity. Digital shopping continues to grow, but the vast majority of every generation still likes a brick-and-mortar option.
This is a big aha and should affirm every brand’s investment in effective packaging and promos like quarter pallet and endcap concepts for pitching to merchants. QR codes are also still alive and well and provide a great way to show and say more when you’re short on space. Additionally, 68% of customers say digital signage like in-bay screens or Pro Desk screens influences their purchase decisions.
So, keep investing in solid packaging and keep pitching your in-store signage and promo ideas, as well as digital sales solutions where available.
DIY MOTIVATORS
The primary motivators for home improvement projects haven’t changed. Improving the home’s style and curb appeal and making the home more comfortable and enjoyable are priorities. What each of these motivators have in common is they all impact how the customer feels about their home – secure, proud, cozy or carefree? Pay attention to this in your marketing messaging. What feeling does your packaging and advertising give your customers? Whether you’re selling a stylish light fixture or a project-specific tool, your packaging and advertising should support the customer’s goal of feeling the way they want to feel about their home.
CUSTOMER SEGMENTS
The professional contractor still accounts for nearly half of the home improvement industry’s sales. They can be an elusive customer segment since they consume media as both consumers and professionals. But the good news is your consumer marketing works double-time in reaching them. This is a highly diverse customer base, and DIYers are also growing more diverse along with the U.S. population. That’s why retailers are investing more with Spanish-language TV.
Despite inflationary pressures throughout the economy, we expect to see an uptick in home improvement repairs and remodeling as more than half of the U.S. housing stock is now almost 40 years old according to the National Association of Home Builders. This can mean more projects for DIYers and more work for professional contractors in the coming years as well.
Movers continue to be an important customer segment. Despite a steady decline in the number of people moving each year over the last decade, the U.S. still saw 25.6 million people move in 2023.
MEDIA CONSIDERATIONS
TV
Although TV advertising is still the king of ad spend, and connected TV alone will grow to a $44 billion industry by 2028, retail media will outspend TV advertising by the same year. In fact, it’s already grown 4X in the last four years. Retail media is digital advertising that retailers manage on their own. A helpful explanation of retail media is outlined on emarketer.com. Talk to your customers where they’re shopping and researching – on your retail partners’ websites and in-app when digital ads are available and realistic for you.
PDPs
Your best advertising tool is one you already own: your Product Description Page (PDP) on your retail partners’ websites. Many brands treat PDP pages like a database needing only bare minimum information when actually the opposite is true. Your PDP encompasses every marketing channel you have available to you: It’s like a TV commercial, a social media post, a magazine ad and an editorial article all in one
- Load professional and inspiring photography, including photography showing the product in use. Showing a person in photography also informs the viewer of the product scale.
- Include photography of all sides of your packaging – you never know what detail a viewer may be seeking in the fine print or even a certification stamp that’s on your packaging.
- Include product explanatory videos or how-to videos.
- Write compelling, clear and simple copy that answers every question you can think of that the customer might ask.
- Outline product dimensions.
- Load schematic drawings.
- Disclose materials that may pose concerns, like those that come in contact with skin.
- Mention environmental benefits.
- List third-party certifications or ISO standards.
- Obtain genuine product reviews through product seeding efforts.
Your PDP is your digital merchandising set – your digital shelf. Use it to sell the product as if you were standing in the aisle explaining to a customer why your product is better than your competitors’.
SEARCH AND SOCIAL
Investing in search buys as well as publishing content written with SEO in mind is vital. Social and social influencer, affiliate, video and display marketing are priority off-site media channels. According to Adweek, brands continue to invest in TikTok shops even though consumers have been slow to adopt, proving that TikTok product videos have become popular enough to compel brands to invest in ecommerce on the platform.
YOUTUBE
If your product needs any kind of explanation such as how to install or how to choose between different products within your product line or your category’s line structure, make a YouTube channel with professional, high-quality, brief, and simple how-to videos and product reviews. And invest in marketing that leads viewers there. According to statista.com, YouTube was the second most visited website after Google last year. Don’t ignore this vital resource for providing meaningful and helpful product content.
Our home improvement customers are savvy, confident, and diverse DIYers who take on small and giant projects. They get their hands dirty and end up way in over their head. Be their hero by reaching them where they are, explaining your product and how to use it, showing them how to do the project, and solving the problem and how your product makes their lives easier so they can get back to enjoying the comfort of their home.