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Trends2019 We present results and analysis of our annual survey of consumer goods marketing executives
Have you worked with the digital ad platforms for Amazon, Walmart, Kroger and/or Target? If so, please rate them in the following areas.
Amazon Targeting effectiveness Measurement capabilities ROI Data sharing Excellent 30% 20% 12% 4% 60% Good 40% 42% 40% 24% YES Average 24% 30% 32% 44% 40% Poor 6% 8% 16% 28% NO 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60
Walmart Excellent 0% 11% 8% 11% 46% Good 34% 34% 29% 24% YES Average 53% 34% 50% 34% 54% NO Poor 13% 21% 13% 32% 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60
Kroger
32% Excellent 37% 11% 7% 22% YES Good 30% 48% 26% 30% Average 33% 33% 56% 26% 68% Poor 0% 7% 11% 22% NO 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60
Target Excellent 9% 9% 3% 6% 40% YES Good 42% 36% 15% 21% Average 39% 45% 61% 42% 60% Poor 9% 9% 21% 30% NO 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Digital Ad Platforms – Amazon, Walmart, Kroger and Target By Patrycja Malinowska igital media plays an increasingly im- aging Amazon as a platform for your brand is so lent and 30% as good. portant role in how consumers are much more than simply ‘winning’ on Amazon Turning the tables on consumer product man- discovering products, and as retailers through sales on the platform. It’s about brand ufacturers, Cohen says it is CPGs that have a are evolving their own content and building, shopping experience and expectation wider lens and need to be able to bring data that advertising businesses, some brands management.” is complementary to the data set a retailer has. Dare taking advantage of this “new shelf space.” On the data-sharing front, Cohen agrees with “CPGs today should already have a meaning- In Shopper Marketing’s annual Trends sur- the 72% of respondents working with Amazon ful data program and roadmap, be it by invest- vey, nearly two-thirds (60%) of respondents say who rated it as average or poor, though he un- ing in their own first-party data programs or they are buying digital ads from Amazon, 46% derstands that Amazon needs to retain its hold leveraging a suite of third-party inputs,” he says. from Walmart, 40% from Target, and 32% from on data to maintain a higher ground. “This will be the best way to drive a more mean- Kroger and its relatively new platform. “Quite frankly, I’m surprised 24% of respon- ingful value exchange with their retailer part- Those who aren’t spending with retailers may dents rated Amazon as good; sure they have ners, sharing influences and behaviors outside be “missing the boat,” says Brian Cohen, chief more than most, but they don’t share it, nor does their experiences at a given retailer.” operating officer at The Epsilon Agency. “It’s it make sense for them to do so,” Cohen says. In terms of targeting effectiveness, Walmart surprising that there are so many who haven’t “That said, the data is why their ad platforms respondents gave the worst ratings (13% of re- made retailer platforms a meaningful part of are so big; they can create and reach audiences spondents rated the retailer as poor and 53% as their shopper or media programs given the ben- better than most.” average), and Kroger took the lead with 37% of efits – shopper behaviors, enhanced relation- Responses from those working with Target respondents rating the retailer as excellent and ships, better attribution. This is not just a shop- were similar to Amazon, with a data-sharing another 30% as good. per marketing tool, it’s a media tool.” rating of average from 42%, poor from 30%, Walmart was also the straggler in terms of Cohen makes his case particularly in terms good from 21% and excellent from 6%. measurement capabilities (21% of respondents of Amazon: “More product searches start on Walmart was more polarizing, with a full 11% rated the retailer as poor and 34% as average), Amazon versus any other platform on the web, of those working with the retailer indicating it is while Amazon led the pack with 20% rating the Google included. Yet these numbers indicate excellent at data sharing, but another 32% rating retailer as excellent and 42% as good. that the investment has yet to catch up. I’m sure the retailer as poor. Target fell to the back of the pack when it many of these same brands have robust search Kroger came out on top with 22% of respon- came to ROI, with 21% of respondents rating the budgets that have yet to include Amazon. Lever- dents rating the supermarket retailer as excel- retailer as poor and 61% as average. JANUARY 2019 SHOPPER MARKETING TRENDS 2019 11
DIGITAL MEDIA/ADVERTISING
Working With Walmart’s Connected Partners By Patrycja Malinowska As digital content gains priority, Walmart is provide “insight into how Walmart works” as “We do what Walmart says because they own relaunching its content provider program and well as a “better understanding of the shopper 34% of our sales.” asking brands to work with select “connected mindset online.” In the minority, respondents who are deci- partners.” Some are aligning with Walmart’s priorities to sively opting out (14%) included those that have Ahead of the program’s relaunch in 2019, the “improve the perception that we are easier to do invested in their own content programs, and majority of survey respondents (62%) indicated business with” and to “get programs through for those who say they don’t do enough business that they “don’t know” if they plan to work with activation,” with one respondent simply stating: with the retailer to support digital spending. the retailer’s partners. These third-party partners scale and opti- mize content from suppliers to retailers and are investing in Walmart by maintaining an onsite presence to ensure that technical issues and business objectives are addressed efficiently. 62% rands orking ith Walmart are no encouraged DON’T KNOW The quarter of respondents who indicated to ork ith one of 11 select digital content partners, they would be (or already are) working with but they are not re uired to. Do you plan to ork 25% Walmart’s partners cited various reasons, in- YES cluding that the partners are “very good” and ith one of these 11 digital content partners in 1 ? will make publishing content to multiple retailer 14% websites easier and faster, and that they will NO
Complete this 40 What percentage of your digital media activity sentence n the ne t 35% is dedicated to the follo ing objectives? year, my company s Brand awareness/consideration investment in the 30 40% Walmart edia Group Sales in physical retail stores 30% formerly W ad 25% 22% platform ill . . . ? Sales on retailer websites 18% 20 16% Direct sales on brand's website 9%
Other 2% 10
0 10 20 30 40 2% 0 Grow Stay the Shrink Be Don’t same nonexistent know