Earlier this year, the Path To Purchase Institute and SMG collaborated on a survey examining how retail media touches shoppers along the path to purchase.
This session discussed the results of that study – the Retail Media UK Shopper Study 2023. Cyndi Loza, managing editor for member content at P2PI, and Katie Streeter Hurle, our very own Chief Strategy Officer, examined five key findings:
1. One in three survey respondents find out about new products and brands through retail media. This upper-funnel role means marketers should be clear what their objective is at each customer touchpoint. They should connect their KPIs to these objectives, so they’re measuring the right things every time. And they should break down the silos between brand and shopper teams to maximise overall effectiveness.
2. Retailer websites act as a ‘point of exploration’ for half of respondents. The key lesson here is that creative needs to be better aligned with customer behaviors, while remaining consistent across the path to purchase. Lower-funnel creative tends to be very functional, but this opportunity to influence choice late in the process means creative needs to do better.
3. One in three shoppers surveyed claimed retail media increased their future purchase intent. We observed that the current restriction of measurement technology means we’re probably underestimating the sustained impact of retail media on sales. Marketers should be aware of the opportunity to increase retention by targeting their most engaged customers. They also need to rethink their media flighting and frequency. According to Streeter Hurle, current data is showing the need for a very high level of frequency to deliver a regular series of nudges to consumers.
4. Online advertising influences in-store behavior for three in four respondents. This finding reinforces the need for a true omni-channel marketing strategy. Marketers shouldn’t pit media touchpoints against each other. Instead, the choice should be based on the objective at each touchpoint. What’s more, retail media needs to be planned and activated with just as much care and attention as any other channel.
5. In-store ads were not only noticed more often, but also made respondents feel interested/engaged. Despite all the talk about ecommerce, 70% of sales happen in-store, making in-store advertising the best way to drive sales. It also makes the rest of the media budget work more efficiently, because it converts awareness built elsewhere into sales.
Summing up, Katie Streeter Hurle says that retail media isn’t just the lower-funnel, conversion-driving tool of popular belief. The study shows it can also drive traditional upper-funnel goals, such as awareness and consideration. But she pointed out that most organisations are not currently set up to take advantage of this capability. New organisational structures, processes, and ways of working with agencies will be needed to allow retail media to perform to its full capacity.
If you’d like access to the full whitepaper that houses the full findings from the Retail Media UK Shopper Study please email firstname.lastname@example.org.
Register your interest for next years Retail Media Summit UK
This year Retail Media Summit UK, or as we like to call it “The Retail Media event of the year”, brought together a room full of cross-atlantic industry professionals to delve deeper into the value of retail media for both retailers & brands. Both the UK and US markets were represented by true experts, giving everyone an opportunity to learn from the challenges and opportunities the other is facing.
We’re incredibly excited to be once again co-hosting the 2024 Summit with the Path to Purchase Institute (P2PI), the leading publication in the United States that offers consumer product marketing executives and brand managers a holistic, 360-degree view of the shopper journey, and we're already buzzing for an even more impactful event in 2024.
Don't miss out on the opportunity to be part of this dynamic community shaping the future of retail media. Register your interest today to stay informed, engaged, and ready to elevate your strategies at Retail Media Summit UK 2024. Join us as we continue to unlock the potential of retail media together.