Is Shopper Marketing at a tipping point?

Posted by Ed Anderson on Nov 2, 2015 10:30:00 AM
Ed Anderson

 

By Ed Anderson

The current state of advertising and is being challenged. PepsiCo's Brad Jakeman gave a fiery presentation at the

Association of National Advertising's annual "Masters of Marketing" conference in Orlando, Fla...

 

KPCB_2014_mobile_ad_spend_way_low-1

"Ad agency models are breaking. Pre-roll ads are useless. Measurement models are outdated. The ad industry lacks diversity. And the phrase digital marketing should be dumped."

Hugh Boyle, CEO of TracyLocke, on what keeps him up at night about the future of Shopper Marketing (from the July 2015 issue of Shopper Marketing): 

"It is my firm belief that the next five years will passage the shopper marketing industry to a place that too few in the industry have yet to comprehend. The generational influence and changing shopper behaviors of the next wave of shoppers will be beyond dramatic. This generation will seek an unprecedented level of creative execution, engagement and relevance in their brands' and retailers' shopper marketing. The era ahead offers the opportunity to be part of something massive and I get very frustrated at the rather pedestrian pace at which this industry seems to move."

In KPCB's Internet Trends 2015 report (slide 17), Mary Meeker identified a big gap in mobile ad spend.

 

The elements of shopper marketing have expanded as its spending has increased since 2009. The following chart highlights the elements of the shopper marketing...otherwise known as the Taxonomy of Shopper marketing:

Taxonomy

 

Since spending in shopper marketing is forecast to increase, this begs the question of the effectiveness of each of these vehicles. The Grocery Manufacturers Association, via Booz & Co. published the following depiction of the most effective and lease effective elements of shopper marketing: 

 vehicle_effectiveness

Overcoming Brad Jakeman’s issues with advertising is more complicated than just reducing spending on less effective activities, and increasing spending on most effective activities. What's missing is a new platform that creates a better in store shopping experience and more bang for the buck in shopper marketing.

At a minimum, what is required is for brands and retailers to experiment with new platforms that exploit the super computer in 75% of shopper's pockets. The short term objective is to learn about what creates lift in revenue, what improves the shopping experience, and what improves the ROI on advertising and shopper marketing spend.

The article Shopper Marketing 5.0 offers this:

As marketers increasingly come to understand that consumer behavior is not always a predictor of shopping behavior, they are becoming more focused on what drives shopper choice, both in online and physical stores. And as retailers themselves come to understand that their wealth of transaction data (what people bought) doesn’t give them true insights into why shoppers behave the way they do, retail merchandising and marketing leaders are questioning everything: store layout, navigation, promotional displays, packaging, associate training, and more.”

 

 

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