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Broader Availability of Shopper Data will See 76 Percent of Marketers Close the Loop Between Campaign and Consumer Action
New consumer shopping habits have marketers turning to sales data to better connect consumer behavior to sales, according to a new study by
This research comes as more retailers look to leverage their in-store shopper data, so that advertisers can measure more clearly the impact of their campaign activities on actual consumer actions.
As consumers’ cross-channel shopping habits continue to evolve, the role of shopper data is becoming critical to media plans. Marketers recognize that sales data is a rich source of information that can be used for both driving purchases and building brands: 44 percent of those surveyed said they used retail data to track sales growth, while 39 percent said they use it to drive brand equity scores.
“Marketers have long sought to connect their marketing investments to consumers’ online and offline behaviors, and retail data is bringing us a step closer to achieving this holy grail of the industry,” said
A separate survey of more than 5,000 consumers indicated that today’s shoppers appreciate the convenience of online shopping, but many still value the in-store experience. Fifty-three percent of respondents said they mostly shop in physical store locations, while 23 percent prefer to shop mostly online.
The percentage of consumers who do most or all of their shopping in-store over online shopping across categories:
According to the survey, nearly a third (33 percent) of millennials indicated they shop mostly online, but different motivations drive consumer shopping preferences. In fact, 25 percent of consumers reported they shop in-store because of the retailer’s physical convenience, and 20 percent ranked ‘the ability to buy online, pick up in store’ as a top reason to shop more online or on a retailer’s app.
As a result of the shift in and fragmentation of shopping habits, more marketers are turning to retail media networks to help them reach consumers with relevant advertising along the purchase journey, as well as measure the effectiveness of that advertising. Indeed, 55 percent of marketers said they employ three or more retail media networks in their marketing mix. And while 89 percent of marketers report they are very or extremely satisfied with the retail media network they use, 34 percent see the “availability and fragmentation of retail sales data” as a marketing challenge.
Nevertheless, marketers realize retail media gives them the ability to use data to deliver relevant ads to consumers at the right time and in the right format as they aim to drive sales and grow market share. In fact, 74 percent of brands said they have dedicated budgets for retail media networks, and these networks now rank fifth in budget allocation, behind digital video, paid social, digital display and paid search.
"As consumers’ shopping habits evolve, marketers need to be more agile and data-driven than ever before. With 71 percent of shoppers saying they prefer limited, tailored ad experiences instead of paying to avoid ads, brands have the opportunity to leverage the capabilities of retail media networks and their rich data sets. With that, marketers can better understand consumers to build smarter digital marketing campaigns, as well as have the ability to measure the direct link between relevant advertising to sales,” added
Methodology for Material+ survey
Methodology for YouGov survey
YouGov conducted an online survey of more than 5,006
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