New Affinity Solutions Study Commissioned by GSTV Uncovers Link Between Fueling Behavior and Elevated Consumer Spending
Analysis of hundreds of millions of card transactions reveals fuel purchase as predictive of a fourfold increase in spend across major retail categories
DETROIT, MI and NEW YORK, NY (May 11, 2022) – Today, Affinity Solutions, a leading consumer insights company, and GSTV, the national video network engaging and entertaining targeted audiences at scale across tens of thousands of fuel retailers, unveil a new analysis that shows a predictive relationship between a fuel transaction and increased retail spending. Key findings include that, in the three hours after fueling, consumers spend 3.7 times more money, transact 4.2 times more frequently, and are over four times more likely to make at least one additional purchase compared to those not fueling that day.
“GSTV came to us with a hypothesis: since consumers often stop for fuel as part of a larger shopping trip, a fuel transaction might be a good predictor of immediate future spending,” said Phil Lore, EVP & Chief Revenue Officer at Affinity Solutions. “Our analysis, spanning hundreds of millions of credit and debit card transactions, across 20 million accounts, bears this out. As marketers look for data-driven opportunities to increase media performance, these findings identify a uniquely pivotal moment along the shopper journey to strongly influence consumer decision-making.”
Of particular interest to marketers, Affinity Solutions quantified the lift in spend propensity for more than a hundred of the country’s top retailers and restaurants, offering advertisers unique insights to help them develop strategies to drive more in-store sales. The analysis quantified the increase in spend at specific key retailers following a fuel transaction including Walmart (+5.0x), Kroger (+4.9x), Target (+4.0x), Walgreens (+3.8x), Taco Bell (5.8x), Home Depot (5.2x), and Chick-fil-A (6.6x), among others. The study also found that a fuel transaction predicts substantially higher levels of spend across major categories, including quick service restaurants (+5.3x), home supply (+5.2x), grocery (+4.8x), big box (+4.0x), casual dining (+4.0x), and pharmacy (+3.6x). Spend behavior was analyzed in the three hours immediately following a fuel transaction from 4/1-7/31/21 and compared to active accounts without an observed fuel transaction that day.
“Advertisers have long understood the importance of reaching viewers at precisely the right moment. This research sheds new light on just how important certain moments can be,” said Eric Sherman, EVP, Insights and Analytics, GSTV. “Affinity Solutions has uncovered a “fueling multiplier” -- an amplification of an ad’s potential impact based on its temporal and geospatial proximity to elevated consumer spending, creating a unique messaging opportunity for marketers.”
The analysis period for the study came more than a year after the start of the Covid-19 pandemic during a lull in cases when there was widespread vaccine availability and prior to the uptick of cases from the Delta variant. In addition to comparing post-fueling behavior to those not fueling that day, the research also looked at changes to post-fueling spend behavior over time, specifically comparing April through July of 2019 against the same period in 2021. The study saw post-fuel consumer spending rise almost 50% in the three hours following a fuel transaction.
The release of this new data and insights comes on the heels of GSTV’s recent announcement of GSTV AMPLIFY, a retail media network that offers CPG marketers the ability to complement and strengthen existing omnichannel brand plans and strategies. With multipliers of spend likelihood defined across categories and key retailers, the new data from Affinity Solutions further demonstrates the value of the unique moment on the consumer journey that GSTV offers to marketers. To learn more about how GSTV reaches consumers in proximity to key retail channels, visit GSTV.com/amplify.
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About Affinity Solutions
Affinity is the authoritative source of truth for news outlets, not-for-profits, research firms and businesses in the US and the only source for purchase insights that can be analyzed by demographic, geographic, lifestyle segment and political affiliation. We power consumer engagement predicated on actual purchase data to help marketers move at the speed of the consumer and improve people's lives. Affinity is powered by Panorama, which is an always-on, privacy-safe platform, within a safe-haven environment. Panorama deterministically matches actual purchase data, and complementary data sets, for audience scoring and validation that drives precision marketing.
To learn more about Affinity Solutions visit www.affinitysolutions.com
About GSTV
GSTV is a data-driven, national video network entertaining targeted audiences at scale across tens of thousands of fuel retailers. Reaching more than one in three American adults monthly, GSTV engages viewers with full sight, sound, and motion video at an essential waypoint of their consumer journey, and GSTV is the only consolidated and scaled digital media platform in the convenience and fuel channel. Analysis of billions of consumer purchases demonstrates that GSTV viewers spend significantly more across retailers, services, consumer goods and other sectors following a fuel transaction. While offering consumers entertaining and informative content, GSTV drives immediate action and creates lasting brand impressions, delivering measurable results for the world’s largest advertisers. Visit www.gstv.com for more information and follow us on Instagram, LinkedIn and Twitter.
Adweek: How GSTV Works With Music Artists and Film Companies
by Meseret Ambachew, Adweek
GSTV's chief executive officer and president Sean McCaffrey says his company reaches 40% of people across the U.S.
The digital OOH company invited MGM Studios' CMO during its NewFronts presentation to talk about the success of its content partnership
Retail digital display company GSTV presented at the IAB’s NewFronts for the third time on the event’s final day, held virtually.
The company touted its reach of 105 million people across the U.S., mainly through displaying content at gas pump stations, which is 40% of adults in the country, according to company chief executive officer and president Sean McCaffrey. With the average consumer pumping gas at least three times a month, the company chalks that up to 15 minutes of time spent with its display.
“The experience itself is outside the home when you use that three to four minutes of dead air,” McCaffrey told Adweek.
Gas prices are at an all-time high, but the alarming numbers haven’t appeared to limit GSTV’s ability to cut content partnership deals, driving its ad business and audience growth. And it’s becoming defter at showing the impact of those deals. Through GSTV’s recent partnership with insights company Affinity solutions, the company found it is 50% more efficient than digital video for campaigns like consumer packaged goods.
Raising the volume on music artists
PG County, Maryland native music artist, Reggie Becton, was invited to speak at its presentation. Becton is in a partnership with Live Nation Entertainment, which currently displays four-minute-long content through GSTV.
Artist Reggie Becton saw his listenership almost triple after his Live Nation video featured at Shell gas stations.
The music artist said he received an influx of messages from friends and fans on his Live Nation spotlight video displayed at Shell gas stations. “It was just like wildfire after that,” said Becton.
According to Becton, within two months Becton’s Spotify listenership nearly tripled, his followership on the platform is now over 255,000.
From small screens to big screens
GSTV also highlighted a partnership with film company MGM Studios, where the company used GSTV’s in-house content studio, Ignite, to create content campaigns for its films.
According to GSTV executive vice president and chief marketing officer, Steve Ochs, after MGM’s video takeover campaign to promote The Addams Family 2, MGM tapped GSTV again in February for its Channing Tatum featured film, Dog.
MGM Studio chief marketing officer, Stephen Bruno, noted the current difficulty of encouraging viewers to go to the movies, but GSTV’s method of unexpected creative—plus the time and place—”helped MGM break through the clutter,” said Bruno.
Insider: A gas station video platform that works with brands like PepsiCo and Heineken is trying to grab retail media dollars — here's its pitch to advertisers
by Patrick Coffee, Insider
GSTV has repositioned itself as a complement to big retail ad platforms like Amazon and Walmart.
The company places ads for the likes of PepsiCo and Coca-Cola at gas stations and has been growing in the pandemic.
Its new pitch deck focuses on how its ads can drive sales at convenience stores and big-box chains.
Scores of retailers and other sorts of companies have jumped into digital advertising to chase some of the $31 billion in ad revenue that Amazon pulled in last year.
GSTV, or Gas Station TV, is a digital video network that places ads for the likes of PepsiCo, Coca-Cola, Heineken, Mars Wrigley, and Johnson & Johnson at more than 28,000 gas stations. As retail media attracts billions from brands and investors, the company is pitching a new ad product called Amplify that connects ad spending to retail sales.
Rockbridge Growth Equity-backed GSTV works with franchisee-owned locations of convenience store chains like 7-Eleven and BP, which lack the scale and resources of giants like Walmart and Target. So GSTV has begun representing them collectively in negotiations with advertisers, ad agencies, tech, and retail companies, GSTV CEO Sean McCaffrey said.
With retail media heating up, GSTV is pitching itself to advertisers that already spend with bigger players like Amazon, Walmart, and Instacart.
GSTV grew revenue at a double-digit rate in 2021 and hired Kristal Walton, a former marketer for SC Johnson and Sam's Club, to build on that growth by focusing on targeting and measurement capabilities as well as the platform's proximity to big retailers, said McCaffrey.
"We reach 40% of US adults as they are spending money and likely to spend more," McCaffrey said. "We show them the last TV ad they see before they walk into retail doors."
McCaffrey said the company avoids data privacy issues by letting its retail partners handle their own first-party consumer data for advertisers.
Below is GSTV's latest deck, which it's using to pitch a variety of companies.
GSTV is using the Amplify launch to position itself as an alternative retail platform.
GSTV claims to have a larger US footprint than McDonald's and Starbucks combined.
It cites Comscore research showing consumers pay more attention to ads at the gas station display than on CTV.
GSTV says it can help advertisers boost sales at gas station convenience stores and nearby retailers.
GSTV partners with thousands of franchisees that can provide brands with their own first-party consumer data.
GSTV claims to be the only platform that lets advertisers reach consumers right before they enter a store.
GSTV says it works closely with CPG brands.
A key part of GSTV's pitch is data showing that people tend to combine gas station visits with shopping at other retail locations.
CEO Sean McCaffrey said the platform is in talks with big-box retailers to combine their data and advertising products in a package deal for brands and buyers.
GSTV says it can offer advertisers proximity to major retailers.
GSTV claims to deliver bigger returns for advertisers than other retailer platforms.
A big part of GSTV's new pitch involves partnerships with analytics companies including IRi and Catalina that help brands measure campaign results.
GSTV claims its new analytics offerings can measure things like units sold.
MediaPost: Pumping Sales: Q&A With GSTV's Sean McCaffrey
by Todd Wasserman, MediaPost
Now that the amount of time people spend in front of the television has been declining over the past decade, traditional TV is no longer the sure thing it used to be for getting in front of viewers.
One alternative is GSTV, a network of programming at the gas pumps. GSTV claims an audience of 104 million monthly unique viewers. For three to five minutes, GSTV gets access to consumers while they have not much else to do but pump their gas.
Since launching in 2005, GSTV has expanded to 25,000 locations at 7-Eleven, BP, Chevron and Gulf, among others. GSTV viewing has also soared during the pandemic, as PepsiCo and other major advertisers came on board.
We spoke with Sean McCaffrey, president and CEO of GSTV, about the network. Below are some excerpts from that conversation.
Marketing Daily: Do you have stats on how many people pay attention to GSTV? I assume it comes on when they start pumping, but how do you know they’re not looking away or listening to their own devices?
Sean McCaffrey: We take the time we have with our viewers while they are fueling up very seriously. In those three to five minutes, we want to supply our viewers with an entertaining and informative respite in their day, and the content experience that we’ve programmed reflects this.
From our 2021 Audience Insights study, we know that 89% of consumers watch and listen to GSTV. That amounts to 104 million unique viewers each month giving GSTV their 1:1 attention, or 2.5x more attentive to ads on GSTV than ads on linear TV, and 3.2x more attentive to ads on connected TV.
Marketing Daily: What are the products that you find get the best pickup when advertised on GSTV? What are some opportunities you see that are so far unexploited?
Sean McCaffrey: We work with advertisers across a wide array of categories, some that one would expect to see on GSTV, and some that may be more unexpected, but perform equally well. The success of our advertisers is leveraging GSTV to capture consumers who are not just fueling up, but out and about and in the mindset of making their next purchase decision for today’s lunch, this afternoon’s activity, tonight’s show to watch, next month’s vacation, a new car this summer, and beyond.
Being steps away from convenience stores, packaged foods and bottled beverages make a lot of sense for GSTV. However, we also know that on the day that consumers are fueling up, they are often making other stops as well -- and GSTV is one of the last full sight, sound, and motion screens they are paying attention to in the last mile of their consumer journey.
Because of this, we’ve found success for CPG brands looking to drive purchase decisions across retail channels, whether it be grocery, drug, or big box. We also know that our viewers eat and drink a lot, so QSRs have found success partnering with GSTV.
Likewise, automotive (our viewers are drivers), entertainment, financial services and travel are also categories that are unexpected but have performed well on GSTV because our viewers are in the right mindset.
Every ad impression, for example, is also a payment transaction, so for a financial advertiser, say, it’s a highly contextual moment to talk to consumers about their relationship to their money, household budget, financial wellness, etc.
Marketing Daily: What do electric cars mean for the long-term prospects for GSTV?
Sean McCaffrey: Regardless of the type of fuel, we are in the business of following the consumer journey. We know that electric cars are on the rise, and we’re keeping pace with consumer adoption.
We’re a partner alongside those who are fueling the evolution of transportation -- retailers, auto OEMs, major energy companies. We all know this is a rapidly evolving industry and we look forward to what’s to come for the intersection of consumer transportation and media.
Our business has been growing over the past few years -- not only in the footprint of our network and size of our audience, but also in the variety of brands partnering with us and the success of delivering on outcomes -- and we will continue to innovate around reaching consumers at the right time, right place, and right moment.
Marketing Daily: Gas prices have spiked recently. Do you find that rising prices makes GSTV consumers less receptive to ads? Why or why not?
Sean McCaffrey: We have not found a connection between the price of fuel and a consumer’s receptivity towards what’s on the screens. Our content experience is designed to entertain and inform based on audience insights, and that does not fluctuate with changing consumer prices.
Marketing Daily: What about when someone walks into a convenience store/gas station that has GSTV? Are there reminders in-store? How do they work?
Sean McCaffrey: According to our Audience Insights study, 62% of fuelers visited the C-store on their most recent visit to the gas station. Our primary aim is to entertain, inform and connect with our audience of drivers filling up at the 28,000+ fuel retailers with GSTV screens across the U.S., and also to best serve the advertisers and retailers who partner with us.
We do this best by partnering with brands, agencies, and retailers to reach consumers at the right time, right place, and right moment -- and in that right mindset -- about their next stop post-fuel-up. We work with our fuel retailer partners to use messaging that shares their latest promotions on our screens to drive customers into the C-store, and we work with brands to direct consumers with creative best practices and calls-to-action relevant to their campaigns.