With Retail Re-Opening, Media Planning Matters More Than Ever: Part 1
As states allow retail businesses to re-open their physical stores, retailers are faced with a new dilemma: what is the best way to ramp up marketing investments to get consumers back in their stores? Compounding this problem is the matter of timing: if brands ramp too soon, they risk losing money with poor performance; if they ramp up too late, they will miss a competitive opportunity and will yield lower sales. The risks are real: retailers cut their marketing spend deeply to conserve cash and need to be extra cautious as they consider ramping up again.
Furthermore, using historical performance to guide these decisions is no longer useful. What worked pre-pandemic isn’t necessarily going to work now, as consumer purchase behaviors have made tectonic shifts over the last several months. Additionally, consumer media consumption has seen similar disruption and historically reliable ways of reaching target consumers may no longer hold.
So, what is a retail brand to do? Just as the pandemic has disrupted retail marketing, retail brands must disrupt their traditional ways of marketing and media planning. Traditional— and most current—media planning focuses on reach and frequency of advertising but completely ignores the question of what incremental sales are contributed by the investments. Furthermore, most media planning today doesn’t look at the e-commerce versus in-store impacts of these campaigns. This matters much more now as retailers are faced with a sharp dichotomy in their e-commerce and in-store channels. As they re-open physical stores, their working spend must work harder— and smarter—than ever to preserve their burgeoning online businesses while helping revive their physical store revenues. To do this successfully requires advanced analytics that measure these disparate hard-dollar impacts.
This type of sophisticated analytics-driven planning is core to OptiMine’s approach. When the pandemic hit, OptiMine quickly began advising its clients on media contributions to online vs. offline revenues. Also, OptiMine’s cross-channel attribution models were updated frequently to account for rapid consumer behavior changes driven by the pandemic. From across its client base, OptiMine is now able to share valuable insights and benchmarks on how media impacts e-commerce versus in-store. Digital campaigns’ sales impact is much larger for in-store where 80% of its total impact is on in-store sales while its e-commerce impact is only 20% of its total.
Over the next several weeks, OptiMine will share more detailed views these benchmarks to help guide retailers with marketing and media planning decisions during the pandemic.
Want to learn more? OptiMine has published an eBook guide that outlines the various performance of in-store impacts of leading digital advertising channels. You can download the guide here for FREE: https://uscampaign.optimine.com/blogpost1