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The Convergence of Retailers and Publishers

by dunnhumby on Nov 06, 2012

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dunnhumby's Allen Mason's presentation at the 2012 Cincinnati Digital Non-Conference

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The Convergence of Retailers and Publishers Presentation Transcript

The convergence of retailers and publishers© dunnhumbyUSA 2012 | confidential

Reevaluating the Role of the Retailer in BrandMarketing Talk about it: #dignc @allenrmason @dunnhumby© dunnhumbyUSA 2012 | confidential

Online Media Trends© dunnhumbyUSA 2012 | confidential

Digital Media Fragmentation & CPMsare on the Rise Fragmentation of Online Average CPMs will rise Spending 109% by 2017 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2012 2017© dunnhumbyUSA 2012 | confidential

Digital Issue #1: Targeted media online has limits 1. Behavioral targeting based on content viewed or demographic data 2. Not 1:1 or delivered at “zero moment of truth” to the consumer© dunnhumbyUSA 2012 | confidential

Digital Issue #2: Measurement lacks robust ROI ● Many focus on clicks, not sales and ROI due to an inability to close the loop© dunnhumbyUSA 2012 | confidential

Publishers need to differentiate and grow But they are limited to: Content Commerce© dunnhumbyUSA 2012 | confidential

Publishers see ecommerce as growth areas© dunnhumbyUSA 2012 | confidential

Retailer Trends© dunnhumbyUSA 2012 | confidential

Consistent eCommerce sales growth© dunnhumbyUSA 2012 | confidential

Online reviews and The Virtual Shelf© dunnhumbyUSA 2012 | confidential

More Decisions “at Shelf” than ever before of consumers say their purchase decisions have been directly influenced by user reviews, either influencing them to buy a different product than the one they had originally been thinking about purchasing or confirming the original purchase intention Source: Deloitte© dunnhumbyUSA 2012 | confidential

Retailers can no longer compete on price alone ● Differentiation based on customer knowledge ● Focus on value delivered ● Driving highly personalized engagement© dunnhumbyUSA 2012 | confidential

CPGs are shifting have shifted to digital 17% Annual growth rate in digital spending Source: Forrester Research interactive marketing forecast 2011 to 2016 (US)© dunnhumbyUSA 2012 | confidential

Brand Digital Priorities ● Make the brand message more relevant and connect at the “Zero Moment of Truth” “It’s a new decision-making moment that takes place a hundred million times a day on mobile phones, laptops and wired devices of all kinds” ● Be “Always on”© dunnhumbyUSA 2012 | confidential

Consumers don’t always want a relationship ● #1 reason people like a brand is for coupons or discounts ● They arent your best customer, or your advocates© dunnhumbyUSA 2012 | confidential

4 Points that make the case 1. Consumers do more with a retailer than shop – the shopper- retailer relationship is broader and deeper than ever 2. Rapidly expanding multi-touchpoint connections with the consumer are engaging, relevant, and measureable 3. Retailers can use shopper sales data to deliver a personalized experience and measure the impact of marketing 4. Consumer interaction with a brand at retail doesn’t correlate with where the consumer buys the brand© dunnhumbyUSA 2012 | confidential

There is no better advertising effectiveness measurement than marketing campaigns run with a retailer.© dunnhumbyUSA 2012 | confidential