Air Conditioner Analysis

WeatherLift
Temperatures Affect on Air Conditioner Demand in Five Major U.S. Markets
June 2012
WeatherLift | Weather Intelligence for Performance Marketers
Air Conditioner Analysis
About Us
Who we are
About WeatherLift
professionals based in Boston, Chicago, and New York. Our weather-advertising solutions deliver campaign performance 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. WeatherLift Overview We are a team of meteorologists and advertising
June 2012
Study Overview
Weather & air conditioner demand
Keyword
Air Conditioner
Study period
May 1st, 2011 to July 31st, 2011 Air Conditioner Analysis
Geographies analyzed
New York, NY Boston, MA Chicago, IL Los Angeles, CA Miami, FL
Weather conditions examined

Absolute Temperature Cloud Cover Precipitation Wind Visibility Humidity Feels Like Air Pressure
June 2012
Data Sources
Where we get our data
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.
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 (whats considered hot in Alaska is not considered hot in Florida). Air Conditioner Analysis
June 2012
Demand Data
Interest 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
June 2012
Results
Condition vs. Geography
air conditioner Temperature (Absolute) New York, NY Boston, MA Chicago, IL Los Angeles, CA Miami, FL All Geographies 0.64 0.59 0.72 0.74 0.49 0.73 0.41 0.35 0.52 0.54 0.24 0.53 Correlation Pearson's R
Our regression analysis revealed a strong relationship between air conditioner demand and temperature. On the hottest days, air conditioner demand increases dramatically. Air Conditioner Analysis
June 2012
Results Cont.
Correlation Monday Tuesday Wednesday Thursday Friday Saturday Sunday ~Average Demand 30.15 33.69 32.29 29.58 28.42 32.22 28.89 Temperature (Absolute) 0.71 0.71 0.73 0.74 0.81 0.71 0.73 0.73
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.
June 2012
Results Cont.
Correlation to Weather Condition (Day of Week)
1.00
0.60
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
0.40
0.20
0.00
-0.20
-0.40
June 2012
0.80
Scatter Analysis
When all geographies are examined, a clear pattern emerges
Temperature vs. Demand
Temperature (Degrees Fahrenheit)
100
80 70 60 50 40 30 20 10 0 0 20 40 60 80 100 120 y = 10.94ln(x) + 37.99 R = 0.686
Demand (0-100)
June 2012
90
Segmentation Analysis
Demand rises 114% above average on the hottest 10% of days
Temperature vs. Demand (Departure from Mean)
150%
100%
50%
Demand 0% Top 10% 10 - 20% 20 - 30% 30 - 40% 40 - 50% 50 - 60% 60 - 70% 70 - 80% 80 - 90% Bottom 10%
-50%
-100%
Hottest days to coolest days in all geographies

June 2012 WeatherLift | Weather Intelligence for Performance Marketers
Demand
Demand Over Time (Boston)

Demand for air conditioners vs. temperature in Boston, MA
5.00 4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 Normalized Demand (Boston)
May 1st, 2011 July 31st, 2011
June 2012
Normalized Temperature (Boston)
Demand Over Time (LA)

Demand for air conditioners vs. temperature in LA
5.00 4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 Normalized Demand (LA)
May 1st, 2011 July 31st, 2011
June 2012
Normalized Temperature (LA)
Weather & Behavior

Weather affects demand
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 their plans 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.
Seasonal variation in demand

Many products and services are better 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. WeatherLift Solutions suited to, or even designed for, particular
June 2012
Our Solutions
What we do
Analyze
Plan
Implement
June 2012
WeatherLift Solutions
Analysis
How does weather impact campaign performance?
Analysis
Our weather analytics help advertisers understand how
Analyze
weather impacts engagement, sales, and demand for their products and services. Our analytics can quantify with defined confidence the performance lift available to our customers.
June 2012
WeatherLift Solutions
Plan & Implement

Campaign implementation
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 using weather. 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.
Implement
Whether you require a full-service 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. WeatherLift Solutions solution or optimization for a campaign
June 2012
Get In Touch
Our contact information E-mail
doug@weatherlift.com mark@weatherlift.com dave@weatherlift.com
On the web
WeatherSource.com
Contact Details
WeatherLift.com
Our address
630 Third Ave, 14th Fl. New York, NY 10017
By telephone
617.281.3466
June 2012

Air Conditioner Analysis

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WeatherLift

Temperatures Affect on Air Conditioner Demand in Five Major U.S. Markets

WeatherLift | Weather Intelligence for Performance Marketers