2006 National Campaign

The 2006 national consumer education campaign (advertising and media outreach) builds on learnings from 2005, as well as a realization that the industry is operating in a more challenging energy environment. While the campaign measured the highest ever levels of consumer awareness at the end of 2005, overall consumer perceptions of energy sources were down, due in large part to rising prices and forecasts of high heating bills.

In 2006, we will look to maintain positive consumer awareness by continuing to communicate propane’s key messages—clean, efficient, good value, trusted and reliable—in order to attract new propane households as well as increase use among current customers.

Advertising:  Who are we targeting?
Our targeted national campaign reaches all US markets, but with an emphasis on areas with a high potential for residential propane use. We target rural counties with low populations (C/D counties per A.C. Nielsen) as a way to reach off-the-main consumers.

All media options are measured by their ability to deliver our “Prime Audience”, which is defined as consumers:
•    Living in rural, off-the-main markets (C or D counties)
•    Very or somewhat likely to build or remodel in the next 12 months
•    Adults 25-54
•    HHI $25,000 - $75,000

Television
National television will continue to focus on programming with both strong rural audiences and home buying/remodeling content. Recommended networks include HGTV, CMT, DIY, The Weather Channel, Outdoor Life Network (OLN), Great American Country (GAC) and NASCAR on NBC and TNT.  We will leverage these network relationships to generate unique sponsorships and online presence to further connect with the core target beyond traditional media.

We will continue to rely on the cost effectiveness of Direct Response (DR) placements to extend the frequency of our messages. DR rates are heavily discounted depending upon marketplace conditions (often up to 50 percent), in return for giving networks flexibility in when the ads run. DR will target networks with strong C and D county audiences and/or with appropriate home related programming.

We will consolidate our NASCAR buy in 2006 with NBC/TNT because of strong sponsorship opportunities and coverage of the important Daytona 500 Race (Feb 19). Races are all in the fall with the exception of the Daytona 500. Spending levels are currently planned at close to 2005 levels, but we are holding approximately $1 million which could be added later, pending closer review of 2005 results.

Network Radio
To both expand our reach to consumers who are heavy radio listeners, as well as increase the number of times the average consumer hears our message, we will advertise on radio networks like ABC (ESPN Radio), Premiere, Westwood, Media America, Dial Global, and Salem.

Ads will run for four weeks at the end of each advertising period (spring supports the run up to grilling season) and look to emphasize formats that have strong rural audiences such as Country Music, NASCAR, Rush Limbaugh and Larry King Live.

Magazines
Since so many consumers use magazines and special interest publications to research home plans and appliance options, the campaign will concentrate print insertions within titles focusing on detailed home planning information, and strong rural audiences. Most of these publications have long shelf lives keeping our message in front of interested consumers all year long.

Online
Online placements also target consumers in the information gathering mode and drive them to the propane website. We will continue with sites that performed well in the 2005 campaign, and integrate these placements with other media sponsorships. We can also develop online tie-ins with “energy tips” ideas that are so successful with media outreach efforts. Search advertising is recommended—it proved to be successful during the 2005 campaign—as it targets only prospects searching for topics like “home heating” or “water heater” and connects them to our website.

Media Outreach
In 2006, media outreach will continue to work in concert with paid advertising, targeting consumers in the process of making heating, water heating and appliance decisions-whether they are building, buying or remodeling. The campaign will continue to rely on proven strategies and messages for driving awareness among consumers, while at the same time modifying tactics to connect more directly with consumers in this life stage.

Outreach in 2006 will be organized under three main umbrellas:

Whole Home. When considered over a home's lifetime, the use of multiple propane applications-including core applications for heating (HVAC system, fireplace), water heating and cook tops-is our strongest efficiency and value story. Therefore, the use of propane throughout the whole home rather than appliance-specific pushes will serve as the driver for most of this year's outreach.

Outdoor Living. Our primary message here will be that propane product innovations can help extend the length of time consumers can use their outdoor rooms, followed by a secondary message that outdoor rooms can increase the value of one’s home.

In addition, a safe grilling effort aimed at urban, suburban and rural consumers will be timed to provide helpful tips during peak barbeque season.

Response Programs. Anticipation of weather-related events that cause power outages as well as the lead-up to (and duration of) the winter heating season will give us the opportunity to deliver timely safety and energy-savings tips.

For information, contact PERC's Kate Caskin or Tracy Burleson at (202) 452-8975 or kate.caskin@propanecouncil.org and tracy.burleson@propanecouncil.org.