the convergence of retailers and publishers

© dunnhumbyUSA 2012 | confidential

The convergence

of retailers and

publishers


Reevaluating the Role of the Retailer in Brand Marketing

Talk about it:

#dignc@allenrmason@dunnhumby


Online Media Trends


Digital Media Fragmentation & CPMs are on the Rise

Average CPMs will rise 109% by 2017

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Fragmentation of Online Spending


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


Digital Issue #2: Measurement lacks robust ROI

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


Publishers need to differentiate and grow

But they are limited to:

Content Commerce


Publishers see ecommerce as growth areas


Retailer Trends


Consistent eCommerce sales growth


Online reviews and The Virtual Shelf


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


Retailers can no longer compete on price alone

● Differentiation based on customer knowledge

● Focus on value delivered

● Driving highly personalized engagement


Retailers have become marketers


Heavy push into digital by traditional retailers

1 download every 30 seconds


Attracting as many visitors as largest publishers

#6 Amazon

#25 Walmart

#49 Target


Brand MarketerTrends


CPGs are shifting have shifted to digital

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

17% Annual growth rate in digital spending


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”


CPG Brand Buyers Online Behavior aligns with Retailer offerings


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


The Case for Re-evaluating Marketing Roleof the Retailer


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


There is no better advertisingeffectiveness measurement than marketing campaigns

run with a retailer.

the convergence of retailers and publishers

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