Home Business The point of sale leads the investment in Food Retail Media

The point of sale leads the investment in Food Retail Media

The point of sale leads the investment in Food Retail Media

spending on retail media doesn’t stop growing. According to IAB estimates, the value of this market in Europe could increase by 25,000 million euros between 2021 and 2026. Whatever the advertiser’s objective (customer acquisition, increased awareness, or reduced customer churn, among others), the retail media offers direct access to consumers along with data-driven insights that help maximize reach and relevance.

dunhumby has published the report “Retail media: the buyer’s view”, in which he analyzes the current and future panorama of global food Retail Media from the point of view of advertisers. Based on interviews with brand and agency marketing professionals around the world, the study reveals key data on which channels are getting the most investment, which aspects of Retail Media advertisers are most satisfied with, potential areas for improvement or what are your expectations for the future.

The point of sale continues to gain in investment

Despite the rise of ecommerce, one of the main conclusions of the report is the great weight that physical stores continue to have for the Food Retail Media. So, last year brands and agencies clearly concentrated their investments in the point of sale (59%) and digital screens in stores (57%).

However, beyond the investment in the physical channel, what can be deduced from these figures is that consumer brands are clear that the Retail Media is a multi-format opportunity and that an appropriate combination of the online and physical channels provides a greater opportunity to generate engagement with your customers.

It should be noted that, if the investment by channels of the brand and agency teams is observed independently, the former opt more for formats based on the physical channel while the opposite is true for agencies.

Regarding the outlook for the coming months, the dominant note is stability. Brands and agencies plan to invest in Retail Media, giving priority to points of sale and digital screens, while they expect a drop in spending on loyalty coupons (-12%) and direct mail (-8%) and an increase in formats like in-app coupons (+15%) and relevant sponsored searches (+6%).

Insights and self-service, the most valued factors in a Retail Media proposal

According to the report, it is observed that, at a general level, satisfaction with Retail Media is currently high and most of the participants are “quite” or “very” satisfied with elements such as innovation, measurement, execution and pricing.

Regarding what are the key aspects of an attractive Retail Media proposal, the participants coincide in highlighting the insights (32%), self-service (29%), flexibility of objectives (25%) and flexibility in creativity (14%). On the contrary, there are differences between brands and agencies when assessing those less attractive elements of a proposal. While both audiences coincide in highlighting the absence of multi-retailer portals, in the case of agencies this feeling is stronger and for 60% working on multiple platforms is a problem, compared to 50% of brands. Other obstacles mentioned are the lack of self-service capabilities (24%) and the lack of standards among retailers (23%).

Regarding measurement, according to the report, the main indicators to assess the impact of Retail Media campaigns are closely linked to sales: new buyers (56%), ROAS or return on advertising investment (48% ) and conversion (44%). Other notable metrics not focused on sales are reach (43%), awareness (37%) and share of voice (36%).

Finally, the report addresses the issue of Retail Media budgets. According to the participants, they mostly come from the shopper marketing, e-commerce, brand and trade marketing departments. In addition, in most organizations budgets are increasing. Thus, 42% of organizations say they spend less than a million pounds a year on Retail Media, while 65% expect their resources in this sector to increase in the next 12 months.

“The results of this study confirm the growth potential of Retail Media at a global level, as well as the understanding by advertisers of the great opportunity that food retail represents to interact with their customers with an omnichannel approach, taking advantage of both the digital and physical channels. On the other hand, we see that the main challenge now lies in advancing in terms of self-service and coherence between the different networks. In this sense, platforms such as dunnhumby Sphere, with a 360 approach, can contribute to the development of the market, improving the experience of both brands and agencies”it states Salvador Di Deco, Business Development Manager of dunnhumby in Spain.

No Comments

Leave A Reply

Please enter your comment!
Please enter your name here

Exit mobile version