Amazon Dominates Retail Media Ad Revenues
eMarketer data illustrates Amazon’s dominance, but also shows good results for Instacart.
eMarketer data illustrates Amazon’s dominance, but also shows good results for Instacart.
It’s no surprise that new product launches often fail to meet their targets. The trick for managers is to improve their predictions for such products. They must balance the costs and benefits of many different data sources and analytic techniques in order to improve forecasting. To enhance the accuracy of predicting the market-level sales of new products, researchers Marton Varga, Anita Tusche, Paulo Albuquerque, Nadine Gier, Bernd Weber, and Hilke Plassmann, analyzed the added value of different data types. Their conclusions are illuminating.
Member Only AccessA new study argues that many advertisers are running their campaigns too long, undermining ROI. On Tuesday, Sept. 21, a panel at the ARF's AUDIENCExSCIENCE conference will debate a controversial new study entitled, "An Economic Analysis of TV Advertising Profitability." The study, by SCHOLARS from the University of Chicago and Northwestern, who analyzed four years of advertising and sales data for CPG brands. They found that, in the current environment, marketers may be running campaigns for too long, undermining their campaign ROI. Their analysis shows negative ROIs for over 80% of brands, implying over-investment in advertising by most CPG firms. The presentation of the study will be followed by an expert panel discussion. In addition, attendees will be invited to participate in follow-up ARF research on changing advertising economics. AUDIENCExSCIENCE 2021 will take place September 20-22. To learn more and register, visit the ARF website.
Member Only AccessA product’s shape, packaging or logo contributes to consumer understanding and reactions to that product, previous research has found. But what impression does the perceived weight of a product convey and how can this be used for advertising and marketing purposes? Researchers Priya Raghubir, Lu Yang and Dengfeng Yan looked into this and discovered that consumers use a stability heuristic for weight judgements. Shorter, broader objects are judged to be heavier and thus are considered more stable. And when it comes to food items, weight also plays on such things as calorie assessment.
LiveRamp discusses the benefits of forming data partnerships.
The early advantages for companies that have done well during the pandemic and recession are quickly eroding. To compete moving forward, retailers must be empathetic to the full gamut of consumers they serve. Increasingly, this involves developing a data strategy centered on partnerships, both internal and external, that help you better understand where consumers are and how best to connect with them.
Why data partnerships are vital in retail: data partnerships were once the purview of large corporations with the resources to build their own infrastructure for managing these relationships, each of which comes with unique technical, security, and privacy requirements. In my experience, companies enter into data partnerships for a variety of reasons from expanding their understanding of their customers to creating comarketing programs to building media businesses. Retailers looking to partner with CPG brands to deliver relevant, personalized content to consumers is a common example of the latter.
What is interesting about the pandemic is that data partnership conversations have become the norm as people see the value and ability to start small in building a stronger, fuller, more complete understanding of consumers. While it’s not possible — or strategic — to enter into a data partnership with every third-party that your brand works with, perhaps you can start by connecting with your internal ecommerce team to gain deeper insight into how your customers are interacting with you and buying your products. This could lead you to shift your content strategy or run custom promotions with your suppliers to capture wallet share while meeting your consumer needs.
Three ways to get started with data partnerships: Here are three ways to think about data partnerships that can build or increase your market advantage in 2021:
Collect: Does anyone at your company have a single, complete view of the customer? Even at some of the largest retailers, not every team has access to the data they need. Think about the many ways first-party data is collected at your company and inquire as to how your team can gain access to this data to drive relevancy and increase media efficiency
A quick win here would be the ability to access more data than you had before — browse data in addition to transactions, for example. The most valuable data you have is collected directly from your customers, so the more you use it, the more you’re able to better serve their needs.
Discover three ways to get started with data partnerships by reading this article.
Source: LiveRamp. Three Data Partnerships to Jumpstart in 2021.
Last spring, businesses had to make quick changes to their marketing investments, ecommerce strategies and the role of analytics. At the first ARF Women in Analytics event of 2021, six leaders, from a variety of industries, shared how they helped steer pandemic recoveries.
Member Only AccessEarly results from a new ARF project suggest that, contrary to some reports, brand loyalty has not dropped during the last decade, at least not for the larger CPG brands.
During last week’s SHOPPERxSCIENCE 2020 event, the ARF invited a number of experts to report on their research and insights on trends in consumer behavior, including recent changes as a result of the pandemic. We recommend reviewing the presentations and summaries on the ARF website.
At the event, one report discussed long-term trends in brand loyalty. The ARF’s Chief Research Officer, Paul Donato, presented initial findings from a new research project, the ARF’s Brand Loyalty study. This first report focused on IRI market share data for major brands in three CPG categories: salty snacks (short sales cycles), pasta sauces (mid sales cycles), and deodorants (long sales cycles) for the 2010-2019 period.
The analyses showed no evidence of declines in loyalty among the larger brands in these categories. For example, while the top thirty brand share dropped slightly for salty snacks and pasta sauces, the average number of unique brands purchased and consecutive purchases were steady. The chart shows little change in the number of consecutive purchases of the same pasta sauce brands.
The analyses are on-going, more data will be shared in Q3 2020.
Source: The ARF. (2020, July 27). Consumer Behavior and Brand Loyalty: ShopperXScience, the ARF.
Change in page views by content category for select online publishers.
Tracked by the Parse.ly network, comparing Feb. 23–March 7, 2020, to March 8–21, 2020.
Source: Fischer, S. (2020, April 7). Demand for online shopping has never been higher. Axios Media Trends: Axios.
A current McKinsey Insights and Publications article discusses the expected growth in the global CPG sector, which is expected to nearly double in size from $8 trillion in 2014 to $14 trillion by 2025. Some surprising opportunities were revealed by McKinsey’s Cityscope Navigator tool, which analyzed the markets of more than 2,600 of the world’s largest cities. See all 5 Cups articles. For more on this topic, check out the Marketing Tab in Morning Coffee.