TECHNOLOGY

Study: In-app ads spur in-store customer spending

BY Deena M. Amato-McCoy

Digital ad exposure, especially those found in retailer apps, is successfully driving store visits.

In-app ads were much more effective than Web ads in driving uplift last year, a key performance metric that helps advertisers understand the impact of ad exposure has on driving store visits. Specifically, in-app ads generated between 19% and 49% in sales uplift in 2017, compared to the 10% to 33% lift driven by web ads, according to “Trends and Benchmarks for Marketers Leveraging Location Data,” a report from location intelligence company Cuebiq.

In-app ads were clearly the most effective channel for driving in-store visits, compared to those customers who were not exposed. While web ads were not as effective, these campaigns generated additional lift when paired with in-app promotions, the study revealed.

When looking at where these ads made the biggest impact, general retail showed the highest median cost per incremental visit (CPIV) of $54.51, followed by home appliances at $52.29, and automotive at $36.64. In contrast, convenience stores ($1.81), finance ($4.48), and electronics ($8.70) all had median CPIVs below $10.

Overall, retail (which includes big-box, discount stores, pet stores, and sporting goods, among others) struggles to increase its footfall traffic from advertising, along with quick service restaurants and automotive (under 40%). Despite these challenges, the electronics category had the greatest lift, seeing gains between 40% and 94%. Yet, telco and financial services are booming through digital advertising (with traffic improvements ranging between 30% and 90%).

“Our analysis of hundreds of campaigns that ran in 2017 provides granular insight into what is really working for driving retail traffic and what the actual cost and ROI for marketers is,” said Antonio Tomarchio, CEO of Cuebiq. “This analysis is helping brands better understand and plan campaigns, while giving an unparalleled view into how they stack up against category averages and their competitors.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

What impact do you expect the new tariffs on imports will have on the economy?
TECHNOLOGY

Target rolling out same-day delivery nationwide, lowers fees

BY Deena M. Amato-McCoy

Target Corp. has made a big move against its rivals in the home delivery war.

The discounter is rolling out its next-day delivery service of household essentials, Target Restock, nationwide. It’s also reducing the delivery cost, with the service now free for all Target REDcard holders, and $2.99 for all other orders (down from $4.99) — with no membership fee.

“Our guests love the speed and convenience of the service,” said Dawn Block, Target’s senior VP of digital. “And now that Target Restock is an even better value, we think the service will become increasingly popular.”

The program enables customers to choose from an expanded online assortment of 35,000 national-brand and owned-brand essentials. Customers can order up to 45 lbs. of merchandise (an online capacity tracker keeps shoppers abreast of available space), and all orders are fulfilled directly from the shelves of local stores. Orders can be placed up to 7 p.m.

To speed up the ordering process, the company recently launched a voice-activated Target Restock experience that enables customers to place orders through Google Home or a smartphone with the Google Assistant app, according to Target.

The expansion comes less than a year since the company introduced Target Restock in its Minneapolis-St. Paul hometown market. In June, the program launched with an assortment of approximately 15,000 items. Since then, the company has rapidly been rolling out the service to additional markets.

Last fall, the company estimated that Target Restock would reach 70 million people by October, or about one-fifth of the United States’ population. The nationwide expansion will now reach more than 75% of the U.S. population, according to the blog.

The program gives competitors a run for their money — literally. Amazon’s Prime Pantry also boxes up customers’ orders of everyday essentials, however the program is reserved for Prime members. Also, orders also have a $6 fee, and are delivered between one and four days.

Walmart is also testing grocery delivery. This discounter’s goal is to offer the service across 800 stores by the end of the year, a move that will serve more than 40% of U.S. households. The program, which is currently available in six markets, will grow to serve more than 100 metro areas across the country.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

What impact do you expect the new tariffs on imports will have on the economy?
TECHNOLOGY

Five Ways Retailers Can Use Messaging Apps to Stay Top of Mind

There was a time not so long ago when retailers were clamoring to launch their own apps as a way to reach their customers on mobile. However, today, the majority of smartphone download no new apps a month, spending the lion’s share of their time in just 10 top apps. The fact is retailers can no longer rely on shoppers to download their apps — they have to reach them where they are already spending their time. And with more people using messaging apps to connect with the people and businesses they love, retailers are starting to integrate messaging into their mobile marketing strategy.

Here are five ways retailers are using messaging to stay top of mind — and drive results:

Try before you buy
While online shopping enables you to make purchases, well, anywhere, being able to visualize the product in your physical space is crucial, whether it’s the ability to try on a pair of glasses or match a set of throw pillows to your couch.

In fact, even with the rise of online shopping, the ability to see, touch and feel products is one of the top reasons consumers choose to shop in stores versus online. Augmented reality has the power to change that. If websites brought the store to your screen, AR brings the store to your space.

Sephora is doing this with their newly released AR effect in Messenger. People are able to browse through different makeup looks like “smoky eye” and “monochromatic warm”, try them on using AR and then capture the look using their camera. They can easily share the picture of themselves trying on the look with friends or loved ones to receive input, and can then purchase products directly within the Sephora.

Shipping updates and receipts
Messaging is a great way to send people things like receipts, order confirmations and shipping updates, all in real-time and in the context of your conversation. No more sifting through emails for tracking numbers or whether a package is set to arrive this week or next; and what’s more, you can communicate updates on the fly. We are seeing household names like Zullily and 1-800-Flowers using Messenger to send customers updates in a way that is conversational and accessible.

Seasonal Moments
During the busy holiday season, messaging is a great way to stand out in the sea of discounts while delivering a more tailored shopping experience. For example, Saks Fifth Avenue launched its gift-guide experience for Messenger days before Black Friday to help shoppers figure out the best gift for their friends and loved ones. The bot asks shoppers several questions about the person they’re looking to buy for, including favorite drinks and vacation spots, and suggests relevant gifts from Saks.com. According to Caroline Klatt, CEO of Headliner Labs, the agency that built Saks’ messaging experience, the bot tracks conversions and clicks over time and will adjust its future gift suggestions based on what people have purchased or browsed. This is a great example of a brand capitalizing on holiday momentum to re-engage customers throughout the year in a way that is personalized and conversational.

Exclusive offers
Because of the personal nature of one-to-one messaging, it is well suited for delivering limited-time or quantity offers and creating an aura of exclusivity for your customers.

For example, Nike, who has been re-imagining the ‘shoe drop’ for their members on the SNKRS app, took this evolution one step further by debuting a launch experience exclusively on Messenger earlier this month. Using an emoji “secret knock” people were able to unlock access to the Kyrie 4 Red Carpets, a limited release shoe. Once they entered the correct “secret knock”, the camera would open, “unlocking” the shoe, which using augmented reality was placed on a pedestal in their physical environment.

People could then walk around and engage with the shoe before returning to the Messenger experience where they could purchase the shoe right then and there. Using messaging, Nike was able to deliver an exclusive offer in an interactive and engaging way. And what’s more, after dropping the Kyrie 4s exclusively in Messenger, SNKRS sold out of the shoe in under an hour.

Stefanos Loukakos is the head of Messenger Business at Facebook.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

What impact do you expect the new tariffs on imports will have on the economy?