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shopper insights

Experts on Data and Creative

The Drum hosted a roundtable with six select members to dissect the ways in which data informs creativity — and how that relationship is transforming in light of market movements and industry sea changes. Here are three of their biggest takeaways.

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  • Article

Amazon Dominates Retail Media Ad Revenues

eMarketer data illustrates Amazon’s dominance, but also shows good results for Instacart. eMarketer points out that, as inflation and supply chain issues continue to compound, digital ad revenues can help retailers and marketplaces bolster the bottom line amid slowing ecommerce growth. In Q1 2022, Amazon’s ad revenues grew 25% year-over-year and exceeded those of its physical stores—and at a much higher margin, per its earnings release. Instacart, on the other hand, may boast much less ARPU than Amazon, but the delivery platform’s high rank shows it is successfully diversifying its revenues as other providers swarm into the grocery delivery space. Source: Lebow, S. (2022, May 5). Amazon dominates retail media ad revenues, but Instacart looms large. Insider Intelligence, eMarketer.

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Can Observational Methods Assess the Causal Effect of Ads?

  • MSI

While Randomized Controlled Trials (RCTs) are ideal for advertising measurement, it is not always feasible to conduct one. Until advertising platforms are willing to provide more information about how they deliver targeted ads or implement auctions, alternative observational methods are unlikely to reliably estimate causal effects. That includes utilizing newer machine learning techniques.

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The Most Crucial Shopping Moment

Do marketers, especially e-marketers, focus on the most pivotal moment in the shopping journey? Sure, it’s important to target consumers during search and on social media. But one marketer thinks that those are not the best channels and that the most vital step in every customer’s journey and experience with a brand is the purchase. Elizabeth Buchanan, Chief Commercial Officer, Rokt, in an Ad Age Opinion, says that most marketers turn to search and social media to capture consumers when they are most receptive to messaging. However, the purchase itself is the most important moment Buchanan argues. She writes that personalization, emotional depth and appreciation are all key to ensuring brand messages build on the positive feelings that come with purchasing online and making consumers want to further engage and act on additional revenue-generating offers. “Retail therapy is real, and the dopamine rush that accompanies a purchase results in a powerful sense of achievement that leaves shoppers open to buying again.” Therefore, this transaction moment is when engagement, interest and buying intention are at their highest. It’s when consumers are most likely to respond positively to additional interactions with brands, such as through relevant marketing messages. It’s a key opportunity for brands to speak with consumers when they are in the best possible state of mind to receive messages. The writer offers three strategies to unlock incremental consumer value: Use first-party data to offer relevant offers Just placing any old ad at the end of a transaction won’t be enough to capitalize on shoppers’ happy feelings. Instead, brands must present offers that are most relevant to each shopper. By making these offers at the right time and in the right way, brands can increase revenue by allowing consumers to easily redeem offers at a time when they are already happy about a purchase. Connect on an emotional level While many digital marketers are looking to engage consumers on social media or news sites, scrolling these sites can prompt feelings of uncertainty and frustration, feelings that are contrary to the joy shoppers are seeking when they make an e-commerce purchase. According to the Happiness Research Institute, new experiences form the happiest and strongest memories, so by leading with novel messaging and offers, brands can make a lasting impression. Likewise, many people feel strong connections to things from their past, so messaging involving looking back nostalgically can be just as powerful. Express appreciation with a reward to build loyalty Offer small gestures of thanks. Expressing appreciation to customers through a free offer or reward after a transaction is a great way to build loyalty and increase order frequency and repeat purchases. During the transaction moment, customers will be riding the high of online shopping, so they’re primed to consider offers that can lead to even more positive experiences—such as getting to purchase something else at a discounted price or receiving a free gift. Source: Buchanan, E. (2022, April 29). How the E-Commerce Transaction Moment can be Leveraged by Brands. Ad Age.

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  • Article

Audience Trends for Products with Supply Constraints

IRI’s Michael Tscherwinski addressed the challenges marketers are facing due to supply-constraints and provided a best-practices playbook for unlocking opportunities. IRI’s 2022 outlook on product availability predicts continued challenges. Inflation, supply chain issues, as well as the war in the Ukraine, impact the operations of CPG companies. Category out-of-stock conditions are widespread, and many CPGs are pausing media. However, Procter & Gamble, one of the largest advertisers in the world, stated that it would continue to invest in marketing.

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Concurrent Track Panel Discussion: Diversity in Advertising

The ARF’s Jay Mattlin brought together the presenters from Day Two’s Diversity in Advertising track to expand on the common themes and findings from their individual studies. The panel agreed that, in communicating to diverse audiences, mere representational casting or presence in ads and content was not enough. Creative that resonates with multicultural audiences needs to incorporate elements of empowerment, appear in representative programs, and show underrepresented groups in positive, non-stereotypical ways. The following are edited highlights from the panel discussion.

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  • Article

Consumers’ New Realities and Routines

Numerator’s “New Realities & Routines” study analyzed responses from over 10,000 consumers. It dissects the market dynamics affecting today’s consumers with a segmentation analysis, to provide an understanding of “new realities” and “new routines.”  New Realities – How are consumers faring financially? New Routines - What do “post-COVID” lifestyles look like? Source: Numerator. (2022, April). Survey+Segmentation Analysis: New Realities & Routines. Numerator.

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  • Article

What Smartphone Buyers Want

A new survey finds that hardware features remain important when choosing a smartphone. However, around the world, financial and environmental considerations are climbing up buyers’ agendas. A study across 17 markets by GWI for media platform Teads was reported in ExchangeWire. It has particular resonance as more people are upgrading to 5G-enabled phones. For example, the consumer survey found that sustainability is not a primary consideration for most buyers, but an increasing number want the products they purchase to have less impact on the planet and to last longer once made. Other key findings:

  • Asked what would make them more likely to purchase a new smartphone, 43% cited lower cost device/plan as a factor; 22% said this was the most important consideration. Cashback deals were the second most important factor (13%), followed by warranty/aftercare (11%), innovative hardware (10%) and promotion bundles (8%).
  • Just 3% said that recycling solutions were the most crucial factor, but 60% also said they would pay more for eco-friendly products.
  • Two-thirds (64%) wanted brands to be socially responsible/eco-friendly and 65% said that durability was an important feature.
“With such a variety of factors at play in determining the next smartphone a consumer chooses, our research shows that advertising can have a substantial role to play in communicating key features and benefits to consumers,” concludes James Aylott, SVP Strategic Accounts, Teads. Source: Aylott, J. (2022, April 29). Smartphone Purchase Intenders are Challenging Purchasing Cycle – Teads. ExchangeWire.

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