Putting it together 2017-03-25آ  Market Track . Perspective. TM. Putting it together. Gaining visibility

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  • www.markettrack.com

    Market Track PerspectiveTM

    Putting it together Gaining visibility across print, email and online

    nline retail continues to grow steadily, with sales projected to increase by nearly 14% in 2011. Meanwhile, spending in the online ad market is on

    track to increase by over 20%, with more than a third of new online ad spending coming from Retail and CPG, according to eMarketer. E-commerce growth continues to outpace growth of sales in the physical retail channel, with much of the growth coming during critical time periods such as the Holiday Shopping Season. In fact, online sales for the 2010 holiday season were reported to be the largest on record, further reinforcing the importance of leveraging retailers’

    websites as a powerful promotional tool to drive sales. These numbers indicate retailers’ continued focus on leveraging digital messaging through promotions not only to drive sales online, but also to drive brick and mortar traffic.

    Retailers and manufacturers have diversified their promotional strategies to include a mix of mediums to reach their customers based on changes in the shopping habits and demographic composition of their audiences. The confluence of print, online and email makes engaging with consumers when and how they choose, with messages that drive action, more important than ever before.

    In This Article…

    Market Track takes a look at the factors influencing consumers today across the digital landscape and how visibility into print, online and email is critical to success.

    • Do you have visibility into how online and email promotions are being leveraged to reach specific demographic groups and how they differ from print promotional strategies?

    • Do your online and email promotional strategies complement your overall strategy in print or do they augment the communication to focus on messages more appropriate for the medium?

    • Are online and email promotions used for strategic positioning or as a quick response to competitive activity?

    • Are you aware of shifts in promotional messaging, positioning, timing and frequency across print, online and email?

    • Do products that are running in the print circular also appear in the e-circular?


  • 2 Market Track PerspectiveTM

    According to a report by the Newspaper Association of America, over half of adults used newspapers for shopping planning and decisions, and 79% acted on newspaper ads— this includes 48% of adults who made newspaper ad-driven purchases, and 42% who were directed to online sources by the ad. While print continues to be a major influencer on consumer purchasing behavior, email and online promotions are key in connecting with buyers who leverage the digital space to do research, as well as make purchases online. We know that certain categories are researched more online than others while some buyers, be it Gen Y’s or Millennials, are more apt to receive their promotions digitally. In order to fully leverage each of these channels, having a clear picture of what is happening across the entire promotional landscape is critical.

    Coming of age In the past, retailers’ online e-commerce sites were in many cases independent entities, leading to separate and disconnected strategies and messaging in their promotions across their print and online properties. This was a function of the delineation of the brick and mortar versus online business strategies. As different people consume information in different ways and technologies such as smart phones have become more common place, retailers and manufacturers realize it is important to take a deliberate approach in terms of messaging in order to leverage the strengths of the various mediums.

    In the case of online promotions, retailers are utilizing the agility and flexibility of digital mediums to reposition a key promotion or price if a competitive situation occurs. The nature of the online space lends itself to being able to react quickly,

    and this is a tactic that many retailers utilize during key event periods, such as the Holiday Shopping Season. In order to be aware of these activities, it is key to monitor all mediums to be able to affect a change during this critical time. In order to make well informed-decisions it’s important to analyze year- over-year comparisons, monitor emerging trends and track the competitive landscape with quantitative data.

    When looking for a way to deliver targeted, relevant messages, email promotions are one of the most powerful ways to reach consumers today. According to Exact Target,

    Figure 1: Department SOV across print, online and email — Consumables

    2 Market Track PerspectiveTM




    When comparing what is being featured across print, email and online, the approach to what is being promoted on the front page of the circular and email is often similar

  • 3The Power of Market Intelligence

    93% of U.S. internet users get at least one opt in email a day. Email offers more opportunity to provide timely, targeted promotional offers to different demographic groups than any other medium. In our Holiday Shopping Season 2010 Webinar we observed retailers not taking advantage of this method of crafting different messages for different audiences. However, as email marketing has evolved more retailers are using this as a way to show they know their customers by sending offers that are more applicable to them. As we compare the different mediums in this Perspective, we are discussing broadcast email promotions that are sent to customers who opt in to receive these messages. This is an important distinction that is separate and different from email sent by retailers to their loyalty card program card holders. The loyalty card emails are influenced by a number of factors such as purchase behavior and frequency.

    The goals and objectives of promotions across different mediums vary—the intent of opt-in email and loyalty programs are customer retention while online and print are conducive for driving store trial. This is interesting when comparing what is being featured across print, email and online, where in many cases the approach to what is being promoted on the front page of the circular and email is similar, as shown in Figures 1 and 2. For example in Figure 3, the week before Father’s Day, Home Depot featured the same products in their email sent on 6/15 as the front page of their circular which dropped 6/16, but sent an email promoting fans and air conditioners on 6/16. This could be an attempt to reach multiple groups with the same message leading up to the event, preempting a competitor who may have been promoting them, or shifting the focus to

    another category to diversify their reach. Consider capitalizing on the receptive nature of opt-in email and loyalty participants by providing offers that are in line with profile information, while incorporating known traffic drivers in online and print promotions to draw new customers.

    Some retailers show demographic targeting in their promotions across print, online and email, placing emphasis on products and offers that will resonate most with the audience according to medium. For example in Figure 4, Walmart crafts its messaging for Back to School/Back to Campus around




    Figure 2: Department SOV across the front page of the circular, online and email — Durables

    Figure 3: Email and circular promotions for Father’s Day Email 6/15/2011 (left), Circular 6/16/2011 (center), Email 6/16/2011 (right)

    The goals and objectives of promotions across different mediums vary—the intent of opt-in email and loyalty programs are customer retention while online and print are conducive for driving store trial

  • 4 Market Track PerspectiveTM

    different themes depending on the medium. The front page of their circular is geared toward moms with promotions around cereal and box tops, while their website is more specific to Back to Campus speaking to college students, and their email push strives to reach a broad audience with a focus on bundled offers.

    What is shown across the print and digital circular varies, and we also see differences across print in the form of regional versioning and market specific differences. In order to have a full understanding of factors influencing consumers it’s important to know what is happening at all levels. The trend

    of retailers reaching different consumer groups through their print and e-circulars demonstrates how promotions are becoming more targeted demographically. As the audiences that are likely to receive each vary, retailers are recognizing this

    is a way to capitalize on theses disparities and playing to each accordingly. The products and promotions featured are in many cases geared toward their respective demographic groups. As

    the majority of Gen X and Y-ers are online and comprise the largest portion of the segment likely to be making purchase decisions based on research done on the internet, e-circulars offer an opportunity to reach them through retailers’ websites

    Figure 5: There are differences in products featured in print and e-circulars due to regional versioning and market variations: Target, 8/7/2011, Kansas City, MO Insert-Digital (left), Insert-Print (right)

    Figure 4: Website, circular and email promotions for Back to School/Back to Campus Email (left), circular (center), website (right)