Last month, we explained five extremely useful digital marketing stats. This month, we’re sharing five more!
What advertising trends will drive profits next year? What does shifting spend say about a given industry? How do you make sense of the numbers coming out of Black Friday weekend?
To answers those questions and more, we put together our second edition of our monthly stat round up, sharing contributions from the EVP of Sales and Business Development at Liquidus, Greg O’Brien; Senior Content Marketing Manager at Vibes, Debra Filcman; and Cofactor’s own Director of Content, Lindsay DeVore.
EXTREMELY USEFUL DIGITAL MARKETING STAT NO.1:
CPGs are expected to spend $5.97 billion on digital advertising in 2016, an 18.2 percent gain from 2015 that will see this sector account for 8.7 percent of total U.S. digital ad spending for the year. (eMarketer)
What does this mean?
GREG O’BRIEN: “Media investment in the CPG category is driven by some of the most rigorous, science-based testing and learning. CPGs do their homework to find what systems and data allow them to understand their customers and yield the best results for their brand. So while making new investments can appear to lag, once a CPG is confident in a new strategy, they move quickly and enthusiastically. This shift in spend highlights how CPGs have started to see well-executed digital media programs drive better ROI than legacy media. Because of that, they are opting to move their money around.
Additionally, the targeting made possible by programmatic media buying has led CPGs to move more aggressively into digital. The rapid advancement of dynamic ad technologies combined with the at-scale targeting capabilities of programmatic media dramatically increases the messaging options available to CPGs. When you can target consumers who’ve purchased a particular brand of laundry detergent in the past 12 months, but not in the last 13 weeks — and do so at scale, telling them the closest retail location where they can buy that item, all in real time — it’s going to have an impact on the ROI that CPGs just cannot get from other media investments. That is something savvy marketers find very appealing.”
EXTREMELY USEFUL DIGITAL MARKETING STAT NO.2:
The average amount spent per shopper from Thanksgiving through Sunday (11/27) fell 3.5 percent (from $299.60 to $289.19) with nearly 64 percent of shoppers reporting that more than half of their purchases were on sale and with approximately 36 percent saying all their purchases were on sale. (The NRF via Retail Touchpoints)
What does this mean?
Brick-and-mortar retailers need to reexamine what Black Friday means to their bottom line.
In a recent podcast, experts from the Wharton School and Syracuse University explained how Black Friday essentially rewards “bad customers” – those who don’t shop with retailers regularly and who don’t spend as much as loyal shoppers – at the brands’ expense.
These experts suggested, “stores would be better off focusing on what they can do for loyal customers throughout the year rather than the one-time shoppers who line up at the door on Thanksgiving night.”
What does that look like? Bed, Bath & Beyond is one retailer boldly testing an approach that will reward loyal customers over casual ones with a new mobile reward. They will be phasing out their famous direct mail coupons, instead offering a permanent 20 percent discount to anyone who downloads their app.
EXTREMELY USEFUL DIGITAL MARKETING STAT NO.3:
70 percent of mobile users who made a purchase in-store first checked their smartphone for information related to that purchase. 68 percent searched on their smartphone for future purchases. And 65 percent used a mobile device in the moment they wanted to make a purchase. (Google / Purchased)
What does this mean?
DEBRA FILCMAN: “This data confirms brands need to reach out to shoppers at each step of the buying journey with compelling, actionable, and resonant messages via mobile. The messages may vary based on when or why consumers turn to their smartphone, but the core question remains the same: What messages transform a mobile researcher into a brick-and-mortar purchaser? Understanding mobile behaviors makes developing successful digital messages easy. How brands then target, scale and deliver them is solved by — sometimes very familiar — technology.
SMS, for example, has been around forever, but it continues to impact brands’ bottom-line. It can reignite interest for a shopper who hasn’t been in-store recently. It can drive a passerby into a nearby store to capitalize on a sale. It can move an already in-store shopper to drop another item in their basket.
Mobile technology is now advanced enough to impact brands’ revenue in significant, positive ways. Given that consumers clearly rely on mobile while they shop, it’s up to the brands to broaden their ideas of what mobile marketing can do for them.”
EXTREMELY USEFUL DIGITAL MARKETING STAT NO.4:
Black Friday became the first day in retail history to drive over one billion dollars in revenue via mobile ($1.2 billion; a 33 percent growth YoY). (Adobe)
What does this mean?
Mobile-first retailers undoubtedly took a portion of that $1.2B and one to watch is Walmart.
The retail giant released Black Friday deals two weeks early and made the offers available exclusively via their mobile app. They also encouraged more digital traffic by partnering with luxury brands like Prada and Gucci to sell brands not found in their stores online.
The mass merchandiser recently made public that 70 percent of traffic to Walmart.com this Black Friday came from mobile devices.
Did the “mobile + exclusivity” approach work? We’ll find out when Walmart shares its Black Friday profits.
EXTREMELY USEFUL DIGITAL MARKETING STAT NO.5:
Programmatic Mobile represents 70 percent ($17.7 billion) of U.S. programmatic digital display budgets and is expected to increase in 2017-2018. (eMarketer)
WHAT DOES THIS MEAN?
LINDSAY DEVORE: “Mobile’s ability to drive online and in-store purchase decisions makes it the ultimate channel for advertisers. And it does so because consumers are always connected with their smartphones (or tablets). But those mobile shopping behaviors vary greatly depending on when they’re using their devices.
Shoppers will investigate an offer they see on TV at home to learn more about a product while in the aisles of a store they might check reviews or try to find a good coupon. When a device is that versatile, it only makes sense that a consumer will rely on it.
What this stat indicates is that advertisers have taken notice of those behaviors and are using programmatic to reach their consumers more strategically, cost-effectively, and with more relevant ad experiences. Hopefully, they’ll continue to shift their dollars wisely to get more from their spend.”