Study: Native ads outpace traditional marketing efforts
Native advertising is significantly spurring in-store traffic — at a more cost-efficient rate — compared to traditional display advertising.
This was according to research from Placed, Inc., a location analytics provider, and Sharethrough, a native advertising supply side platform. In late 2016, the partners tapped a popular quick service restaurant chain, a nationwide apparel brand and a major global consumer electronics company to compare native advertising's effectiveness in driving traffic to retail stores and the lower cost-per-visit vs. display ads.
Across the three brands, people exposed to native ads were 21% more likely on average to visit a brand's physical retail location than those who weren't. All brands studied beat Placed benchmarks for in-store lift for their respective verticals — at a collective average of 300% above the standard.
The brands drove traffic to their stores through native ads at an effective cost of 41 cents per visit. The major consumer electronics brand drove in-store traffic to stores selling their products at 22 cents a visit, a high cost-efficiency that was 84% lower than Placed's benchmark.
Further, the quick service restaurant chain was able to drive extra sales from people exposed to their native ad campaign equivalent to a 20x return on their native spend, research revealed.
"As we keep drilling down on the 'why' of native at Sharethrough, it's not just about serving less interruptive advertising that audiences actually pay attention to — it's also about showing brands how native moves the needle for their business," said Dan Greenberg, Sharethrough co-founder and CEO. "This new work we're doing with Placed locks in a major new piece of this narrative, proving that there is a direct line between better ads in someone's content feed today, and more people shopping in that brand's store tomorrow."
French children’s clothing brand in U.S. debut
Orchestra is entering the United States, both online and off.
The 23-year-old French children’s and maternity fashion brand has launched its first English language website. The retailer will make its U.S. brick-and-mortar debut, opening newborn/children's clothing store at King of Prussia Mall, King of Prussia, Pa.
In late December, Orchestra parent Orchestra-Premaman SA entered into an agreement to acquire Destination Maternity Corp. after a year-long takeover battle.
"We are thrilled to finally introduce our unique and fashionable brand of children's clothes and footwear to U.S. customers," said Agathe Boidin, director and vice chairman, Orchestra, which operates more than 700 stores in over 40 countries. "Orchestra has experienced enormous success around the globe and we are looking forward to launching the brand in the United States."
Boidin, who previously served as CEO of Orchestra, is overseeing the company’s development in North America.
Specialty chain integrates omnichannel processes
To the key to omnichannel success is having access to synchronized, and up-to-date business information.
Mattress Firm is partnering with Visionet Systems to create a centralized information repository that integrates all business information across retail channels in near real-time — a move that will improve operational efficiency enterprise-wide.
When Mattress Firm began evaluating which technology partners could support this transition, it needed a company that could integrate its existing e-commerce investments in Microsoft Dynamics AX and Demandware. Being a solutions partner for both, Visionet was a natural choice.
“Visionet’s integration solution for Demandware and Dynamics AX has simplified our retail order management,” said Jonathan Sider, CIO at Mattress Firm.
“It ensures a single version of the truth, and prevents the proliferation of separate information silos for each sales channel,” he said. “Automatic synchronization between Dynamics and Demandware has eliminated the need for other error-prone and labor-intensive methods.”
The transition has also unified the retailer’s enterprise resource planning (ERP) and e-commerce platforms. This transition that has led to many strategic benefits, including establishing a single data repository — a move that lets Mattress Firm implement genuine omnichannel workflows, such as support for in-store or home delivery of products ordered over the phone or online.
Meanwhile, completely linking Demandware and Dynamics has helped Mattress Firm effectively monitor and optimize customer interactions. “Visionet’s CommerceLink solution has helped us achieve visibility into all of our consumer interactions across our multiple online and store channels,” said Tony Miller, VP of enterprise systems at Mattress Firm.
“This was important for us in order to improve our customer engagement, bring merchandising consistency, and streamline fulfillment processes,” he added. “Visionet’s EdgeAX CommerceLink solution cut through complexities, simplified these business processes, and helped us achieve our objectives across channels.”