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Market Track PerspectiveTM
Putting it togetherGaining 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?
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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
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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
CIRCULAR
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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)
Retailers recognize their audiences are different when it comes to print and digital and are varying their messaging accordingly
5The Power of Market Intelligence
and e-circulars. On the other hand, baby boomers, which still have the most discretionary income, are most likely to receive their promotions delivered through print to the home, costing advertisers more than through promotions in the digital channel. Keeping these differences in purchase potential, cost and exposure in mind, retailers should be promoting different categories, brands and even prices to these different groups.
Time is relative The cadence at which promotions occur varies across all mediums and is different among retailers and trade classes. When looking at Kroger and Walmart in Atlanta for the month of July, Figure 6 shows
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Socially acceptableWith 50% of Facebook’s 750 million active users logging on to Facebook in any given day, and Twitter’s user base up 26% from 2010, it’s clear there is a large opportunity to reach a high volume of consumers through social media. Promotions across this medium vary from local ad apps to daily deals—with a wide range of offer types. As companies work to incorporate a social media strategy for promotions, it should be with the same deliberate approach taken across other channels. Developing a strategy that is in line with overall goals and formulated with the fast paced nature of social media in mind will determine impact.
Social media is similar to opt-in email and loyalty card programs in that customers must follow or like a brand to see the promotions. Unlike email, there is less segmentation and targeting occurring presently. As social media continues to evolve, look for more specialized methods of reaching specific groups and demographically targeted messaging.
There is push and pull between social media and online promotion. Often users are pushed to the company’s website to see the full offer and product description—this can be used as an opportunity to promote complimentary products, giving them additional exposure. There are similar products being promoted in push email and social media as well, shown in this example from Target. It’s important to understand the interplay between the mediums and how they can work together to maximize their impact on purchase behavior.
Figure 6: Promotions across email and print at Kroger (top) and Walmart (bottom)
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6 Market Track PerspectiveTM
variances between their print and email strategies. Nationally, Kroger publishes print on a “best food day” that varies by region supplemented by market specific materials with their email distribution following their weekly circular pattern. Walmart dropped their major print circulars twice on Sundays in July around the country with supplemental circulars on a market basis, with their email
distribution primarily on Mondays with the exception of the week of July 4, July 14 and July 28. It’s possible these additional email pushes were a strategic shift based on a competitive situation.
Conversely, there is much more fluctuation across these mediums when it comes to Department stores. Among the retailers shown in Figure 7,
there is not only much greater volume in terms of email messaging, with Kohl’s sending over five emails per week, but also a wide variance when it comes to their print promotions. Macy’s shows less concentration in their email distribution while focusing more than the other retailers on ROP. Because newspaper readership skews toward a more mature, affluent demographic, Macy’s strategy to feature their promotions where their audience is gives them exposure in a medium that has less competition vying for consumer attention.
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Figure 7: Promotions across email and print at Macy’s (top) and Kohl’s (bottom)
Retailers recognize their audiences are different when it comes to print and digital and are varying their messaging accordingly
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7The Power of Market Intelligence
All over the board What is being featured across print, online and email also shows a wide level of variation. There are instances where thematically there is synergy in terms of categories being promoted. However, there are also instances of competitive products being advertised simultaneously across print, email and online. Private Label is also frequently featured in digital promotions, which could be due to a deliberate strategy to cater to different audiences through the different mediums, or an effort to test performance across brands.
When it comes to products that are known traffic drivers, it is important to have a concerted and strategic approach
when selecting medium and timing. Events centered on other traffic drivers, seasonality and buying patterns are also important considerations. When looking at the promotion of Tide across print, online and email at Kroger in Figure 9, we see that Tide is promoted frequently in print. However, the number and frequency of email and online promotions are more sporadic. In addition, while Tide is paying to appear in the circular, a competing brand is being featured in their email promotions. This is also seen in the example in Figure 8, with CVS promoting Pampers in their circular and Huggies on their website and email promotions. It’s important to monitor all three areas in order to ensure promotions that are being featured in the circular are not undermined by competing brands being featured in the digital channels.
Winning The most critical aspect to gaining a competitive advantage across all mediums is having visibility into what is happening across the promotional landscape. Formulating strategy and reacting to competitive situations is not possible until you
Figure 8: CVS ad 4/4 circular (upper left), website (above) email (left) Promotion of competing products in online and email
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Figure 9: Promotions by week for Tide at Kroger across print, website, email; comparison of Tide’s competitor featured in email during the same weeks
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It’s important
to monitor print, online and email in order
to ensure promotions that are being featured in the
circular are not undermined by competing brands being featured in the
digital channels.
Kroger print circular, Atlanta, Week of 7/10/11
Kroger opt-in email, Atlanta, Week of 7/10/11
© 2011 Market Track. All rights reserved.
Learn More
For more insight into the entire promotional landscape or an analysis of your digital and print strategies, call Market Track at 1.800.235.3781 or e-mail [email protected].
About Market TrackMarket Track is a market intelligence firm dedicated to increasing our customers’ returns on their promotional investments. Through innovative technology and marketplace expertise, we monitor and analyze over 200 U.S. and Canadian markets for every channel of trade in order to provide retailers and manufacturers with superior tools to monitor promotional activity, support dynamic decision making and turn information into market intelligence.
Key Takeaways• Monitor print, online and email
performance in order to optimize impact and effective use of each medium
• Ensuring you are taking a strategic approach to promotions across the entire marketing mix will enable both retailers and manufacturers to take full advantage of their investments and trade funds
• Measure lifts and dips that are due to print promotions and understand the impact of online promotions on those efforts
• Leverage the flexibility and responsiveness of the online space to react to market conditions or competitive situations
• Utilize email’s ability to speak to specific demographic groups, allowing for highly targeted and relevant messaging
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understand of all of the inputs affecting consumers buying decisions. Being able to gain insight and analyze this important information is critical to success, as well as coordination between retailers and manufacturers, the online and print promotional teams, and the brick and mortar and online merchandising and sales organizations.
Strategies for Retailers: • Know your audience and provide messages in the medium that is most likely
to reach them at the time of influence. Use emails and e-circulars to target the demographic most likely to go online or check email consistently, focus on print for audiences that primarily receive their information and promotions through the newspaper
• Vary the promotions and products on your e-circulars from your print circular to correspond to the appropriate audience. For example, feature products in your e-circulars that would be of interest to Gen X or Y, while promoting products in the print circular that appeal to Baby Boomers
• Identify the best time to reach each audience across print, online and email and strategically time the cadence of your promotions across the different mediums. As we talked about in our Multi-Channel Promotions Perspective and Webinar, emails need to be better timed to coincide with demographic purchase patterns. For example, send on Friday vs. best food day drops
• Understand what is going on across all promotional channels to avoid duplicative, contradictory or disconnected messaging
Strategies for Manufacturers: • Gain visibility across print, online and email. Work with retailers’ sales forces to
drive the strategy behind when your product is advertised in print and what is then promoted in the e-circular, online or email
• Negotiate with the retailers to get support across all the mediums. If you are “paying” for space in print, don’t allow your competitor to get a free ride in other mediums. For example, compare the e-circular to the print circular to be sure you appear in both, and monitor email and retailer homepages to be aware if a competitor is featured simultaneously with your print promotion
• Coordinate your efforts by compounding the impact of multiple promotional opportunities. Time your FSI’s with retailers’ email cadence in order to increase the exposure of your products and the value perception of the offer
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