Breaking Down Trex’s Digital Advertising Funnel
The Purpose of This Research
- Identify how competitors are reaching viewers in the awareness, consideration and conversion stages of the marketing funnel.
- See how spend, messaging and ad creative fluctuates over time at each stage of the funnel.
- Understand competitor priorities toward involving buyers in the discovery of their brand through campaigns that are made up of a variety of tactics in each respective funnel.
Here’s how Trex is investing in its digital advertising marketing funnel:
Advertising Overview (2020-2022)
- From 2020-2022, Trex invested $3.7M in ads. The highest ad budget increase was in 2022 (+38%).
- Spring and Summer months, Q2 ‘20 (+102%), Q3 ‘21 (+52%) and Q2 ‘22 (+183%), saw more investment than the AYS* for each quarter’s respective year.
- OTT saw the most growth from $31K to $779K (+2,404% YoY).
Marketing Funnel Trends (October 2021-December 2022)
- From October 2021 to December 2022, Trex invested $1.3M into marketing funnel ads.
- Consideration ads saw the lowest investment at $153K.
- Conversion ads saw the highest investment of $651K.
- OTT saw high ad allocation in awareness (47%) and conversion (84%) campaigns.
- Awareness: All ads allude to the emotion in building memories that a deck can help create for prospective buyers.
- Consideration: 66% of the budget went to tools to help guide at-home builders from the comfort of their laptops.
- Conversion: All ads follow through on concepts introduced earlier in the funnel. Emotion in awareness ads is repurposed with a Shop at Lowe’s CTA. Tools from consideration campaigns are repurposed to entice viewers to order samples.
*AYS = Average Yearly Spend
From 2020-2022, Trex invested $3.7M in ads. The highest ad budget increase was in 2022 (+38%).
Warm seasons saw +102%, +52% and +183% more investment than average yearly spends respectively across 2020-2022.
The substantial increase in ad spend in Q2 2022 was driven by a large investment in OTT ads ($707K).
OTT saw the most growth from $31K to $779K (+2,404% YoY).
Paid Search and Display each saw an average decrease of -24% YoY.
Facebook, Instagram and YouTube saw increases into 2021, but decreases of -27%, -5% and -100% into 2022, respectively.
Trex directed ad spend to the following marketing stages:
From October 2021 to December 2022, Trex invested $1.3M into marketing funnel ads.
December 2021, April 2022 and June 2022 saw the top spends on ads about aspirational deck plans.
Consideration ads saw the lowest investment at $153K.
From October 2021 to December 2022, consideration ads saw an average ad spend of $10K a month.
October 2021, April 2022 and July 2022 saw the top spends on planning tools, product line intros and color intro ads.
Conversion ads saw an investment of $651K.
From October 2021 to December 2022, conversion ads saw an average ad spend of $43K a month.
May and June 2022 saw the top spends on ads similar to awareness aspiration ads but with a CTA to shop at Lowe’s.
OTT saw high ad allocation in awareness (47%) and conversion (84%) campaigns.
Paid Search saw the majority of its spend in consideration campaigns (70%), followed by awareness campaigns (34%).
Facebook occupied spend in a portion of each funnel, with the highest allocation in consideration campaigns (13%).
Display and Instagram only represented an average of 5% and 2% of the ad spend across funnels.
From October 2021 to December 2022, Trex spent $565K on awareness ads. 47% of Trex’s budget focused on OTT, followed by Paid Search (34%). Facebook (9%), Display (8%) and Instagram (3%) saw the lowest spends.
Top Ad Campaign Examples
The % is share of budget allocated to high-level awareness campaigns.
- Deck Aspirations (66%)
- More than a Deck (19%)
- HGTV Dream Home (9%)
- Browse Trex (2%)
- Benefits (2%)
- Other (1%)
Awareness Campaign Takeaways
- 30-second ads saw the highest spend (49%) for OTT at $130K.
- Desktop devices (87%) saw the highest ad allocation for Paid Search in awareness campaigns.
- All ads allude to memories that a deck can help create for prospective buyers. OTT ads connect raising a child to eventually hosting their wedding on the backyard deck. Search ads use the simple “Much More Than a Deck” title. These aim to connect with the viewer on a deeper and emotional level.
- Trex participates in the HGTV Dream Home where viewers can enter to win a property with a Trex backyard. The landing page (1) features an image gallery and information about the initiative.
From October 2021 to December 2022, Trex spent $153K on consideration ads. 70% of Trex’s budget focused on Paid Search, followed by Display (16%). Facebook (13%), and Instagram (1%) saw the lowest spends.
Top Ad Campaign Examples
The % is share of budget allocated to high-level consideration campaigns.
- Cost Calculator (50%)
- Partner Highlight (25%)
- Color Selector (11%)
- Color Introductions (9%)
- Competition (2%)
- Other (3%)
Consideration Campaign Takeaways
- 66% of the budget went to tangible campaigns like cost calculators, colour selectors, and even a deck-building academy to help guide the creators from the comfort of their laptops.
- 34% of the budget went to intangible campaigns focusing on familiarizing potential buyers with partner retailers, product sets and offerings as seen in Partner Highlight, Color Introduction and Competition campaigns.
- Trex has subdomain landing pages for both Lowe’s and Home Depot that have respective tool pages for calculating & planning.
- Desktop devices (79%) saw the highest ad allocation for Paid Search in consideration campaigns.
From October 2021 to December 2022, Trex spent $651K on conversion ads. 84% of Trex’s budget focused on OTT, followed by Facebook (11%). Paid Search (3%), and Instagram (2%) saw the lowest spends.
Top Ad Campaign Examples
The % is share of budget allocated to high-level conversion campaigns.
Conversion Campaign Takeaways
- 84% of the budget featured videos similar to aspirational content in awareness campaigns, however, videos included “Lowe’s” or a “Home Depot” CTA at the end with dedicated brand landing pages.
- Trex also built a retail-finder tool to help viewers locate products in the closest proximity to them.
- 30-second videos (77%) saw the highest spend allocation for OTT in conversion campaigns.
- In consideration campaigns, color selector and detail campaigns are used to make prospects aware of their options. The ‘order a sample’ conversion campaigns follow through on those interests by encouraging buyers to test the product.
*Ad spend includes Facebook, YouTube, Display, Paid Search, OTT and Instagram.
*Spend is a directional approximation and does not include retargeting, or behavioural targeting.
*Displayed ad spend is representative of the highlight platform’s entire funnel spend for the highlighted campaign.
Make your digital strategy bulletproof.
Get insights like these, customized for your audience and competitors.Learn about Research-AS-A-SERVICE →