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According to an article released on Dunnhumby, every marketer grapples with a fundamental question: Are the advertising channels we choose influencing customer behavior? Whether it's the brand team, shopper marketing, or performance marketing, understanding this impact is crucial. However, answering this question isn't straightforward.
Today's marketers have an array of channels at their disposal, each with its unique metrics and challenges. From traditional mediums like television and print to the precision of Retail Media, measuring the true influence of each channel is a complex task.
Even when we can precisely measure a channel's impact, interpreting the results can be challenging. Consider a shopper seeing a social media post promoting a soft drink and then making the purchase. Would they have bought it anyway? Or was it solely due to the ad exposure? Determining incremental sales requires deep data analysis.
To shed light on this issue, dunnhumby conducted a study late last year. Leveraging the Consumer Pulse, an ongoing international research program, we explored which channels influence buyer behavior the most.
Identifying Influential Channels
According to our findings, television advertising holds significant sway over buyers, with 36% of respondents reporting it persuaded them to make unplanned purchases. However, traditional media collectively exert less influence than Retail Media alternatives.
In-store communication tops the list, motivating 27% of consumers to make unplanned purchases. Personalized offers and direct discounts from retailers follow closely behind at 20%.
While social media and advertising on retailer websites or apps have similar effectiveness (20% and 17% respectively), not all consumers respond equally. Around a quarter (26%) of participants reported feeling no influence from these channels.
Understanding Demographic Variances
Analyzing these results by demographics reveals intriguing insights. While both genders are influenced by similar channels, subtle differences emerge. For instance, television ads have a greater impact on women (38%) compared to men (33%). Conversely, men are more receptive to ads on retailer online channels (20% vs. 14% for women).
Age also plays a role. Social media ads resonate more with younger shoppers aged 18-34 (34%) compared to the 35-56 age group (26%). However, television remains equally effective across both age groups.
The effectiveness of advertising on the ecommerce app or website is enhanced when consumers make online purchases and the retailer delivers their orders. Conversely, Retail Media In-Store performs best among those who opt to shop online and then pick up their purchases in the physical store. Furthermore, according to the Consumer Pulse, customers with a positive perception of their personal finances are more likely to be influenced by online advertising, with a 20% response rate, compared to those whose financial situation is more delicate, with a 14% response rate.
Looking Ahead: The Rise of Retail Media
As seen in the Consumer Pulse studies conducted for France and Germany, Retail Media channels such as personalized offers and direct mail have shown to have the greatest influence on buyers in these markets. With spending on Retail Media in Spain surging by 15% between 2021 and 2022, it's evident that this trend is gaining momentum. While television continues to hold influence, the growing impact of Retail Media channels on buyer behavior suggests a shifting landscape. For advertisers aiming to shape behaviors and boost sales, Retail Media emerges as a compelling option, offering targeted and personalized opportunities to engage customers effectively. As the Spanish market continues to evolve, it's likely that this trend will persist, further solidifying the role of Retail Media in marketing strategies.
In summary, understanding the impact of advertising channels on buyer behavior is critical for marketers. While television holds sway, Retail Media channels offer targeted and personalized opportunities to engage customers. As the advertising landscape continues to evolve, staying attuned to these trends will be essential for driving success in marketing campaigns.
Ready to optimize your digital shelf and enhance your Retail Media strategy? Schedule a meeting with one of our specialists at Shalion today! With our expertise in Digital Shelf Optimization and Retail Media Intelligence, we can provide insights into your product's display accuracy, visibility investment, competitive positioning, promotional activities, keyword performance, and much more. Don't miss out on the opportunity to unlock unprecedented granularity in your marketing strategy!
