Home Depot at Institutional Investors Conference Notes

Kevin Hofmann – President of Online and the Chief Marketing Officer

55% of our marketing spend is now digital

“In this case – here we go, we’ll start with marketing. We’ve made a pivot, a significant pivot over the last few years towards more digital marketing. You might be surprised to know that a better part of 55% to 60% of all of the marketing that we deployed now is in the new media or digital world. Now, that doesn’t mean the old media world of TV and you’re getting an early view here of our Spring TV spot that’s playing in a few markets right now.

On the far left there, we still do a ton of TV. We still do a ton of traditional radio. There still is a place in the world for print advertising. But we’ve seen the customers’ behaviors change where everybody is spending their screen time, where everybody is doing dual screen watching when they’re at home. It’s changed dramatically and especially with the explosion of mobile. So, we’ve changed dramatically our marketing habits where we deploy our marketing spend.

So, as you can expect, the traditional world on the left, the digital world with both paid channels, very active with Google search terms, we manage over 18 million different keyword combinations with Google and partners like Google. We have a very, very active social media practice. We do a lot of retargeting for customers and are constantly looking at ways to make our marketing and advertising more personal, more contractually relevant for the customer and also more location aware. So, talking to you based off the weather patterns that you’re experiencing in your local neighborhood, those are all things that we have and we’ve deployed in our marketing spend.”

Contractors are adopting digital like everyone else

“–there is a theory out there that the contractor is a late bloomer when it comes to e-commerce and we actually don’t see that so much. Especially the millennial contractor, very, very much lives on their mobile device and so, heavy usage of interconnected tools for the millennial contractor. And then what we find is that if we just can get them exposed to it, they love it. When I mention the buy online, pick up and store, it’s one of the most delightful things we can introduce to a contractor. So, we’ve seen really, really nice uptake from the Pros.”