Air Conditioner Analysis

7/31/2019 Air Conditioner Analysis

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June 2012 WeatherLift | Weather Intelligence for Performance Marketers

WeatherLift

Temperatures Affect on

Air Conditioner Demandin Five Major U.S. Markets

AirConditionerAnalysis


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Who we are

About Us

About WeatherLift

We are a team of meteorologists and advertising

professionals based in Boston, Chicago, and New York.

Our weather-advertising solutions deliver campaignperformance improvements to client who seek to lower

cost per action and heighten brand recall by optimally

deploying marketing budgets when and where demand

for products and services is highest. WeatherLiftOverview


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Study Overview

Study period

May 1st, 2011 to July 31st, 2011

Weather conditions examined

Absolute Temperature

Cloud Cover

Precipitation

Wind

Visibility

Humidity

Feels Like

Air Pressure

Keyword

Air Conditioner

Geographies analyzed

New York, NY

Boston, MA

Chicago, IL

Los Angeles, CA

Miami, FL

Weather & air conditioner demand



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Data Sources

WeatherLift Weather Data

We have developed proprietary weather

data system for marketers. We aggregate

data from 12+ sources with multiple layers

of quality checks. Our data is then:

Algorithmically cleaned, filled, and

corrected.

Intelligently simplified (geographically

and temporally) to enhance usability.

Normalized by geography (whatsconsidered hot in Alaska is not

considered hot in Florida).

Demand Data

We use Google Insights for Search to

compare search volume patterns across

specific regions, categories, time frames

and properties.

Search volume is an excellent predictor of

general market demand and is often used

by businesses for budgeting and planning

purposes.

Where we get our data



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Demand DataInterest over time for air conditioners varies by geography

Top keywords

Air Conditioner portable

window Air Conditioner

Air Conditioner btu

btu

Air Conditioners

ac

air conditioning

wall Air Conditioner

best Air Conditioner

Air Conditioner reviews



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ResultsCondition vs. Geography

Our regression analysis revealed a strong

relationship between air conditioner

demand and temperature.

On the hottest days, air conditioner

demand increases dramatically.


air conditioner Correlation Pearson's R

Temperature (Absolute)

New York, NY 0.64 0.41

Boston, MA 0.59 0.35

Chicago, IL 0.72 0.52

Los Angeles, CA 0.74 0.54

Miami, FL 0.49 0.24All Geographies 0.73 0.53


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Results Cont.Condition vs. Day of the Week

Demand for air conditioners varies slightly over

the course of a week.

When all geographies were grouped together

and regressed against our weather data

temperature continued to show a strong

affect.


Correlation Demand

Temperature

(Absolute)Monday 30.15 0.71

Tuesday 33.69 0.71

Wednesday 32.29 0.73

Thursday 29.58 0.74

Friday 28.42 0.81

Saturday 32.22 0.71

Sunday 28.89 0.73

~Average 0.73


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Results Cont.


-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

Monday

Tuesday

WednesdayThursday

Friday

Saturday

Sunday


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Scatter AnalysisWhen all geographies are examined, a clear pattern emerges


y = 10.94ln(x) + 37.99R = 0.686

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100 120

Demand (0-100)

Temperature(Degree

sFahrenheit)


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Segmentation AnalysisDemand rises 114% above average on the hottest 10% of days


-100%

-50%

0%

50%

100%

150%

Top 10% 10 - 20% 20 - 30% 30 - 40% 40 - 50% 50 - 60% 60 - 70% 70 - 80% 80 - 90% Bottom10%

Demand

Demand

Hottest days to coolest days in all geographies


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Demand Over Time (Boston)Demand for air conditioners vs. temperature in Boston, MA


-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

Normalized Demand (Boston)

Normalized Temperature (Boston)

May 1st, 2011 July 31st, 2011


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Demand Over Time (LA)Demand for air conditioners vs. temperature in LA


May 1st, 2011 July 31st, 2011

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

Normalized Demand (LA)

Normalized Temperature (LA)


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Weather & Behavior

Seasonal variation in demand

Many products and services are better

suited to, or even designed for, particular

types of weather. For example, gardening

supplies begin to appear on store shelves

with the arrival of spring weather, while

the sale of snow shovels coincides with

the onset of winter.

Retailers themselves are aware of such

effects and use weather as a cue to begin

and end merchandising seasons.

Short term variation in demand

Weather is a driving force behind both

positive and negative variation in web

traffic, foot traffic, and sales.

Weather causes people to change theirplans with certain conditions making

them more likely to seek out or avoid

certain activities, products, and services.

For example, consumer demand for

sunglasses falls as cloud cover increases.

Weather affects demand

WeatherLiftSolutions


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What we do

Our Solutions

Analyze Plan Implement



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Analysis

Analysis

Our weather analytics help advertisers understand how

weather impacts engagement, sales, and demand fortheir products and services. Our analytics can quantify

with defined confidence the performance lift available

to our customers.

Analyze

How does weather impact campaign performance?



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Plan & Implement

Implement

Whether you require a full-service

solution or optimization for a campaign

already underway, we are pleased to be of

assistance.

WeatherLift solutions integrate with ad

networks, demand side platforms

(DSPs), and other real-time and

geo-enabled systems.

While digital display is our principal

focus, we also offer solutions for

mobile, web TV, and DOOH platforms.

Plan

No matter what media strategy you

employ direct response, brand

awareness, or a combination of the two

WeatherLift offers solutions to improve

client campaign performance usingweather.

We will provide access to our real-time

local weather data to optimize campaigns

by:

Adjusting daily budget allocation.

Guiding seasonal ad spend.

Adjusting bidding criteria.

Campaign implementation



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Get In Touch

E-mail

[email protected]

[email protected]

[email protected]

Our contact information

On the web

WeatherLift.com

WeatherSource.com

Our address

630 Third Ave, 14th Fl.

New York, NY 10017

By telephone

617.281.3466

ContactDetails

Air Conditioner Analysis

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