NEW YORK, June 8, 2017 /PRNewswire/ -- Criteo S.A.
(NASDAQ: CRTO), the performance marketing technology company,
together with Kantar Millward Brown,
today released "Trade Marketing in Transition," a study
commissioned to better understand how marketers are working with
retailers to draw attention to their products. With the growth of
ecommerce and more deliberate focus on the shopper across devices
and channels, there is increasing demand to coalesce brand budgets
with trade budgets. This combination typically includes retail
display allowances for product positioning, temporary price
reductions, end caps, and shopper marketing.
"Trade marketing is undergoing a profound shift," said
Jonathan Opdyke, President,
Brand Solutions, Criteo. "To
profitably target and acquire shoppers, both online and offline,
marketers must adapt their trade practices and budgets. This study
confirms that retail marketers need solutions that allow for
real-time measurement of ROI and an end to the debate between
offline vs. online, in favor of an
omnichannel approach."
"Especially in the CPG and Grocery sectors, we're seeing a clear
indication from marketers that the time is right for brand and
trade marketing to align," Adrian
McCallum, Senior Director, Kantar
Millward Brown. "This move, combined with more widespread
integration of digital technology, helps connect marketing efforts
more closely to the sale and creates greater shopping
efficiencies."
Key findings from data analysis of trade marketer's survey
responses include:
- Trade Marketing Pain Points: Respondents felt
measurement/attribution (59%) and trackability (58%) were trade
advertising challenges that needed
improvement. Reaching younger consumers (56%) and process
complexity (55%) were also highly ranked.
- Ecommerce Imperative: 50% of respondents rated online
sales as "disruptive to hugely disruptive" to their industry.
- Paid Search Growth: Over the next five years, both on
stand-alone ecommerce and retail sites, paid search was considered
an area with the greatest expected increase in effectiveness (62%).
Print-related tactics were expected to have the greatest decrease
in effectiveness (52%).
- Trade Marketing vs. Ecommerce Challenges: Amazon setting
prices (29%), conflicts between brand and retail sites (28%), and
the complexity of process (27%) were ranked as the top three
concerns when it comes to marketing products online versus in a
store.
- Trade Spend Wish List: Simpler methods to measure
effectiveness (58%), a holistic view of the shopper (56%), and
connecting trade and brand budgets (53%) were the top three items
on marketers' "wish lists" for the future of trade spend.
Additional takeaways from "Trade Marketing in Transition"
include:
- Retailers should utilize product listing ads and display
advertising techniques to increase sales and generate incremental
revenue to compete with Amazon.
- Given that paid search on ecommerce and retail sites is
considered an important part of the future of trade spend, brands
should continue to develop the ability to manage this form of trade
marketing.
- Just as they do offline, brands and retailers need to come
together to develop best practices for the mutual benefit of
driving sales and developing efficient practices and measurement
tactics to assess the impact of online trade activities.
- Late-comers to ecommerce marketing may face a daunting
challenge when they choose to support online sales, due to factors
like Top Rank Persistence and Amazon's growing dominance in the
market.
Study Methodology
To assess trade marketing activities
and budgeting, Criteo worked with Kantar
Millward Brown to develop a survey instrument that would be
administered to marketers who had budgetary authority over trade
spend in some way during the past 10 years. 100 executives were
either interviewed by phone or asked to take an online survey. Half
of the respondents were from the CPG sector, with the rest roughly
divided between CE, Apparel, Toys and Health & Beauty. The
study was conducted during April
2017.
For a complete look at the findings found in the Trade Marketing
in Transition Report, please visit
http://www.criteo.com/resources/trade-marketing-in-transition/.
About Criteo
Criteo (NASDAQ: CRTO) delivers
personalized performance marketing at an extensive scale. Measuring
return on post-click sales, Criteo makes ROI transparent and easy
to measure. Criteo has over 2,500 employees in more than 30 offices
across the Americas, EMEA and Asia-Pacific, serving over 15,000 advertisers
worldwide and with direct relationships with thousands of
publishers. For more information, please visit www.criteo.com.
Media Contact:
Kenya Hayes
k.hayes@criteo.com
(703) 589-7595
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SOURCE Criteo