the convergence of retailers and publishers

© dunnhumbyUSA 2012 | confidential

The convergence

of retailers and

publishers

© dunnhumbyUSA 2012 | confidential

Reevaluating the Role of the Retailer in Brand Marketing

Talk about it:

#dignc@allenrmason@dunnhumby

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Online Media Trends

© dunnhumbyUSA 2012 | confidential

Digital Media Fragmentation & CPMs are on the Rise

Average CPMs will rise 109% by 2017

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Fragmentation of Online Spending

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Digital Issue #1: Targeted media online has limits

1. Behavioral targeting based on content viewed or demographic data

2. Not 1:1 or delivered at “zero moment of truth” to the consumer

© dunnhumbyUSA 2012 | confidential

Digital Issue #2: Measurement lacks robust ROI

● Many focus on clicks, not sales and ROI due to an inability to close the loop

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Publishers need to differentiate and grow

But they are limited to:

Content Commerce

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Publishers see ecommerce as growth areas

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Retailer Trends

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Consistent eCommerce sales growth

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Online reviews and The Virtual Shelf

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More Decisions “at Shelf” than ever before

of consumers say their purchase decisions have been directly influenced by user reviews,

either influencing them to buy a

different product than the one they

had originally been thinking about

purchasing or confirming the original

purchase intention

82%

Source: Deloitte

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Retailers can no longer compete on price alone

● Differentiation based on customer knowledge

● Focus on value delivered

● Driving highly personalized engagement

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Retailers have become marketers

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Heavy push into digital by traditional retailers

1 download every 30 seconds

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Attracting as many visitors as largest publishers

#6 Amazon

#25 Walmart

#49 Target

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Brand MarketerTrends

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CPGs are shifting have shifted to digital

Source: Forrester Research interactive marketing forecast 2011 to 2016 (US)

17% Annual growth rate in digital spending

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Brand Digital Priorities

● Make the brand message more relevant and connect at the “Zero Moment of Truth”

“It’s a new decision-making moment that takes place a hundred million times a day on mobile phones, laptops and wired devices of all kinds”

● Be “Always on”

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CPG Brand Buyers Online Behavior aligns with Retailer offerings

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Consumers don’t always want a relationship

● #1 reason people like a brand is for coupons or discounts

● They aren't your best customer, or your advocates

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The Case for Re-evaluating Marketing Roleof the Retailer

© dunnhumbyUSA 2012 | confidential

4 Points that make the case

1. Consumers do more with a retailer than shop – the shopper-retailer relationship is broader and deeper than ever

2. Rapidly expanding multi-touchpoint connections with the consumer are engaging, relevant, and measureable

3. Retailers can use shopper sales data to deliver a personalized experience and measure the impact of marketing

4. Consumer interaction with a brand at retail doesn’t correlate with where the consumer buys the brand

© dunnhumbyUSA 2012 | confidential

There is no better advertisingeffectiveness measurement than marketing campaigns

run with a retailer.