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 The Trade Desk (NASDAQ: TTD). The
research shows the number of marketers who intend to use sales data
very frequently, versus those who currently use it, is expected to
nearly triple in the next 12 months. The research also shows that
76 percent of marketers plan to use point-of-sale data frequently
in the next 12 months as they look to connect advertising activity
to consumer purchases, whether it happens online or in the
store.
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 Brenda Tuohig, SVP, Global Data Partnerships,
The Trade Desk. “Retail data can allow brands to be much more
efficient and precise. They can understand how a campaign drove
results in a specific region, in a particular store, at a certain
time of day, using different advertising channels and creative
approaches. For advertisers, it’s a game-changer.”
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:
- Apparel & Clothing – 34 percent
- Home Improvement – 51 percent
- Beauty / Personal Care – 51 percent
- Pharmaceuticals – 59 percent
- Groceries – 71 percent
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 Jed Dederick, SVP, Global Client Development, The Trade
Desk.
Methodology for Material+ survey
The Trade Desk conducted an advertiser study with Material+,
surveying more than 150 brand marketers in the United States. Brand
marketers are defined as those who work in the marketing area of a
consumer goods manufacturing company that sells its products
through wholesale retailers. Respondent’s teams are responsible for
brand (e.g. digital marketing, CRM marketing) and/or shopper
marketing. All respondents held a position of a director or above
and have a role in deciding where advertising dollars are spent.
Field work was conducted September 1-13, 2021.
Methodology for YouGov survey
YouGov conducted an online survey of more than 5,006 U.S. adults
(18+), further qualified into subgroups of “Shoppers” defined as
consumers who purchased an item within the past three months in
either the home improvement, apparel and clothing, pharmaceuticals,
beauty and personal care or grocery categories. Field work was
conducted September 17-23, 2021. The figures have been weighted and
are representative of U.S. adults (18+).
About The Trade Desk
The Trade Desk™ is a technology company that empowers buyers of
advertising. Through its self-service, cloud-based platform, ad
buyers can create, manage, and optimize digital advertising
campaigns across ad formats and devices. Integrations with major
data, inventory, and publisher partners ensure maximum reach and
decisioning capabilities, and enterprise APIs enable custom
development on top of the platform. Headquartered in Ventura, CA,
The Trade Desk has offices across North America, Europe, and Asia
Pacific. To learn more, visit thetradedesk.com or follow us on
Facebook, Twitter, and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20211110005665/en/
Melinda Zurich The Trade Desk melinda.zurich@thetradedesk.com
201-320-9398
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