Customer Story
From DMA to location-specific advertising, Papa Murphy's increases returns for regional co-ops
The Challenge
Papa Murphy's needed a more efficient way to activate local advertising for their 1,300 US stores, including corporate locations, franchised locations in outlier markets, and within DMAs.
Many franchisees operate in rural areas and lack brand advertising support, and many other franchisees are part of DMA co-ops and have been asking for more direct influence over the brand advertising in their local trade area. For the first time, franchisees in co-ops can optimize messaging based on what's best for their business and their local audience.
Prior to Hyperlocology, advertising with traditional agencies was pushing one message for all stores and targeted to a large DMA, which did not provide franchisees the ability for store-level customizations and reporting on spend and ROI.
Franchisees in co-ops also had no ability to plus-up already active advertising to drive more sales for their stores. This was a priority for the brand team, making it easier for franchisees to increase their spend on local in paid media.
Without a centralized solution, the brand lacked the ability to ensure local messaging and targeting align with national advertising efforts. Franchisees would also continue to struggle to advertise locally or simply not spend on advertising, preventing millions of dollars in potential incremental sales for the system.
Dana Misner
“Prior to Hyperlocology, our franchisees - individually or within a co-op - were limited to offers and messages. Now each franchise location can choose the budget and specific offer best suited for their trade area, including operators and locations in an existing co-op. All offers are aligned to our national strategy for compound benefit. Franchisees have seen immediate impact, and we're now using Hyperlocology to power location-specific advertising for our company-owned locations as well."
The Solution
Papa Murphy's and Hyperlocology teamed up to implement a customized local advertising platform. Papa Murphy's maintains the role of strategic driver for local paid media and franchisees are empowered with a click-to-launch solution to activate brand-powered advertising in their local trade area.
The strategy spans co-op marketing budgets and local store marketing budgets and includes multiple channels - Programatic Display, Video, Facebook and Instagram. Papa Murphy's is able to reach local consumers with the optimal message, with the optimal channel mix, while developing individual local audiences required to drive results at the store level.
Franchisees get custom reporting on spend and results per location via a customized dashboard, and the marketing team has enhanced reporting and analytics to measure local spend against real business results (like sales and revenue per location) across the channels where franchisees spend their marketing budgets.
“Prior to partnering with Hyperlocology, all locations in our co-op had to run the same creative regardless of the store’s profile. I also had no visibility to the ROI of our local digital ad spend. Now, we can choose the creative message that is most relevant for each individual location, and see the ROI it is delivering per location.”
Ed Holmes
Multi-Unit Franchisee
Ed Holmes
The Results
After executing Programs and Campaigns customized per store for three months, the results were clear.
4x Average ROI based on store-level revenue
250 Creative and offer variations deployed based on local audience attributes
5,002 Incremental purchases during seasonally slow period
Mike Marasco
Multi-Unit Franchisee
“We had been using an agency to place our local digital advertising but had almost no visibility to its performance. Shortly after starting with Hyperlocology, I saw tangible improvement - a noticeable increase in sales, with campaign performance reporting that clearly explained why.”
By streamlining local advertising for corporate stores and franchisees, Papa Murphy's is now set up to scale and win local marketing battles. The marketing team maintains their role as the strategic driver of all advertising, and empowers their franchisees with local advertising options, access to more channels, faster turnaround times for advertising campaigns, and lower costs than working with a traditional agency.
It’s what we call brand directed, locally perfected.