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Marketers: Turn impressions into intent this holiday season

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As volatile and uncertain as the world is, every holiday season brings us joy. In 2020, as stores closed and society fell into disarray, consumers showed remarkable resilience by spending money on gifts that warmed the hearts of loved ones near and far. In 2021, holiday retail sales are set to have their biggest annual increase in 17 years, despite supply chain issues, extremely high inflation and the highly contagious Omicron variant. This year, US consumer confidence is at an all-time low and inflation uncertainty is at a 30-year high. Yet history leads us to believe that shoppers will find reasons to celebrate this holiday season as they have for millennia.

To drive sales this holiday season and to create and capitalize on demand, many marketers are turning to retail media. As they do, here are three things they should keep in mind:

  1. Budget flexible to perform better. Whether funding retail media with shopper marketing budgets, paid social dollars, or a new retail media budget, it’s important to be flexible. Why? The profitability of each Retail Media Network (RMN) will vary. For example, many retailers are following Amazon’s lead by hosting Prime Day-style events such as Walmart’s “Rollback Deals,” Target’s “Deal Days,” and Wayfair’s “5 Days of Deals.” These events lead to a higher cost per click at saturated RMN, making it difficult to maintain market share. In anticipation, marketers should target retail media to higher-margin products with less competitive, long-tail keywords – especially 3-5 word keywords – that indicate strong purchase intent. In addition, they must actively shift the budget to less saturated RMNs, such as from delivery apps and hotels, to take advantage of early movers.
  2. Be obsessed with the customer rather than the product. Every consumer has a unique way of making a purchase. Some go from conscious to buying in less than an hour, while others take months. Yet marketers often optimize retail media with metrics like product-level contribution margin or believe (erroneously) that optimizing their product feed will eliminate the need for paid media altogether. She goes. Rather than being obsessed with products, marketers should plan, buy and optimize retail media based on consumer intent, as they should for other channels. This involves mapping and sequencing media coverage of consumers’ decision journeys based on where consumers are on that journey and how fast they are moving.
  3. Measure the ubiquitous effect of retail media. The lack of a supply chain would encourage people who prefer to shop online to shop in-store, and “buy online, pick up in store” would become increasingly popular. With this year’s holiday shopping mixed, marketers need to evaluate the all-encompassing impact of their retail media spend. This is intended to measure the most visible short-term effects of retail media, such as the effect of retail media on online sales, but also the less visible effects, such as offline placement and the effect of retail media on offline sales. This leaves marketers vulnerable to the halo effects that onsite media has in store. For example, research from the Digital Shelf Institute found that a laundry brand’s paid search campaigns on Amazon contributed to a 10% increase in point-of-sale in-store sales speed. Such evidence helps marketing (and finance) leaders prove the pervasive influence of retail media, influencing consumers across digital and physical shelves.
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Check out more holiday blog posts for more insight from our latest consumer surveys Here,

This post was written by Senior Analyst Nikhil Lai and originally appeared Here,

Source: www.forbes.com

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