24 Hour Fitness worked with an out-of-home advertising agency to promote its boutique-like programs to its members and members of boutique gyms. The campaign included geo-fencing around its clubs and mobile technology that worked in conjunction with billboards to track campaign exposure.
Objective and Context:
24 Hour Fitness developed an out-of-home (OOH) strategy to increase lead generation and new member sales in its Los Angeles and San Francisco clubs. With the introduction of boutique gyms, such as Orange Theory, and low-cost, no-frills gyms like Planet Fitness expanding into U.S. markets, 24 Hour Fitness faced stiff competition and possible membership decline. To reinforce the idea that it provides high-quality amenities and a wide range of fitness options at a competitive monthly fee, marketers planned to cultivate awareness with members of boutique gyms while also reinforcing its boutique-like programs with existing members. OOH and mobile were combined to target gym-goers with geo-fencing around 24 Hour Fitness clubs. This was in addition to a campaign that targeted people at competitive gyms with mobile ad delivery.
24 Hour Fitness targeted women between the ages 25 and 54 and, secondarily, men between the ages of 25 and 54.
24 Hour Fitness encourages members to “sweat it out together.” The campaign’s OOH art included the message “Do More,” while the targeted mobile ads used the message “Join Now.” These taglines tapped into the current trend of playful copywriting evident in class names like “Barbells to Barre Class” and delivered relevant messaging to the target audience. OOH and mobile were perfect advertising platforms for reaching active, on-the-go consumers.
Overall Campaign Execution:
Viewers were identified using mobile data. Then, 24 Hour Fitness measured club visits, and lift was calculated by comparing those who were exposed to the messaging with those who weren’t. A state-of-the art planning tool matched inventory to the audience using mobile data to profile billboards based on their likelihood of reaching this specific behavioral audience.
Mobile technology was used in three ways:
A control group consisting of consumers whose devices were not exposed to the ad was also built. Geographic distribution, visitation behavior, and device OS ownership compositions were matched to make sure both groups were essentially similar with the exception of the ad exposure. This ensured that any differences between the two groups were due to exposure to the campaign. Next, visitation rates to 24 Hour Fitness locations were tracked among both groups to determine if those exposed to the campaign had a higher visitation rate than those who were not exposed to the campaign.
24 Hour Fitness integrated multiple technologies using mobile data as part of its OOH strategy to drive club visits. Mobile data identified people who were exposed to the campaign, and all OOH units were located within a five-mile radius of 24 Hour Fitness Clubs. Many of the units over-indexed for women between the ages of 25 and 54. The results of the study showed an increase of over 200 percent in visitation rates to 24 Hour Fitness clubs in both L.A. and San Francisco.
Once the mobile retargeting strategy was introduced in conjunction with the OOH targeting, it helped power hyper-local, club-specific marketing. The mobile campaign metrics gathered at the client level revealed that combining mobile retargeting with the OOH campaign was a highly effective marketing strategy. Click-through rates that were generated were double the industry standard and performed better than other digital channels. The success of the initial campaign led to the extension of mobile campaigns in additional markets that had no OOH presence.