5 Digital Shopper Marketing Trends We’re Noticing in 2015
OwnerIQ recently spoke at the Shopper Marketing Summit where we gave an educational session on Programmatic for Shopper Marketing. If you missed it, below are some of the trends we’re seeing in the programmatic landscape in 2015. OwnerIQ is the leading programmatic solution for shopper marketing, we work with hundreds of brands and retailers to develop successful shopper marketing solutions.
Shopper marketing is trending in 2015, and we’re not just talking about paper circulars and in-store end-cap displays. Digital shopper marketing is an increasingly important aspect of product brand integrated marketing strategy. In the last two years, the average shopper marketing budget has increased dramatically — from 10% of a total marketing budget in 2012 to 15% in 2014. Digital shopper marketing is expanding rapidly as programmatic technology develops to deliver targeted ads, increasing the revenue potentials.
Here are the shopper marketing trends we’re seeing so far in 2015:
1. Growing use of programmatic
Three out of every four marketers currently employs programmatic advertising as part of their strategy, and the practice is on the rise. Programmatic ad spending in the US topped $10 billion in 2014 and is projected to reach $20 billion by 2016, according to eMarketer.com. Programmatic technology analyzes active shopper data to instantaneously deliver targeted advertisements. Access to first party data revealing shoppers’ online behavior is essential for delivering the most successful targeted ads. First party data identifies customers who are in the market to buy a specific product, unlike third party data, which identifies broader demographic information about a shopper. Most marketers don’t have access to the exact first party data they are seeking, but at OwnerIQ, our first party data comes from over 400 retailers and product brands. We are bringing programmatic to shopper marketing.
2. Increasing investment in shopper marketing
Traditional methods of shopper marketing — in-store displays and paper circulars — are ever-important, but it’s no secret that digital strategies are essential in this day and age. Digital shopper marketing is an effective complement of in-store and off-line shopper activities. The advancement of programmatic shopper marketing technologies is undoubtedly fueling the growth of shopper marketing trends. This past year, the average marketing budget devoted 15% of its funds to shopper marketing, up from 14% in 2013 and 10% in 2012, according to the annual trend report in Shopper Marketing Magazine. In FY 2015, 47.5% of businesses surveyed are planning to increase their shopper marketing budgets.
3. Growing collaboration between retailers and product brands
More than 60% of product brands reported that shopper marketing programs lead to increased support from and strengthened relationships with retailers, according to Shopper Marketing Magazine. Retailers are becoming more involved with shopper marketing strategy because they can now monetize their audiences by sharing first party data with product brands, allowing them to target specific customers. OwnerIQ’s Co-Operative Audience Exchange (CoEx) facilitates this sharing. CoEx is a unique data management system that enables our retailer and product brand partners to securely exchange data on audience behavior and deliver highly targeted advertisements.
4. Product brand ads connecting audiences to retailers in multi-channel approaches
The most successful shopper marketing strategies utilize multiple channels for targeting customers. Retail websites, product brand websites, mobile ads, TV ads, online marketplaces, digital coupons, in-store displays, and numerous other channels facilitate communication and transaction opportunities for product brands, retailers, and customers. Nearly 70% of shoppers today research purchasing options online before entering a brick and mortar store to complete the purchase. Co-branded targeted advertisements can now influence shoppers to buy product brands from their specific retail partners both in-store and online, and OwnerIQ specializes in creating these types of campaigns. After selecting the channels to deliver your message to your audience, remember there are various ways to measure the digital activation impact on in-store sales. We have the ability to link digital activity to in-store sales. A high level of measurability is what really matters, not clicks on your ad.
5. Expanding use of micro-location technology and other mobile shopper data
The growth of mobile marketing technology is on the rise, and it will continue to grow as location-based strategies develop to deliver targeted ads to smartphone users. 22.9% of marketers surveyed for the 2015 Shopper Marketing trend report said they are currently testing beacon technology or micro-location strategies, while just under 4% are already using these technologies. An additional 24.6% of responders said they plan to explore these types of strategies soon. Programmatic technology also has the potential to help marketers develop carefully delivered ads to mobile users, using many different types of data. Mobile user data can also show a person’s buying patterns and web behavior, allowing marketers to deliver the best targeted mobile ads possible.
These are just five of the many shopper marketing trends on the rise in 2015. What trends are you watching out for in shopper marketing this year? Please share in the comments below.
Robert Scheckman is VP of Shopper Marketing at OwnerIQ. Robert can be reached at: email@example.com.
Sources: Enhancing Digital Shopper Marketing with Programmatic Buying, OwnerIQ. 2014, OwnerIQ 2015 internal data from CoEx. The 2015 Programmatic Outlook Report.