February 25, 2013

Digital coupon events on leading retailer websites monitored by Marx, a Kantar Media solution, increased 50 percent in CY 2012 compared to CY 2011. During this same period, retailer advertising expenditures increased 4 percent and retailer participation in Free Standing Insert (FSI) coupon promotion pages increased 5 percent, according to Kantar Media.

These data are from a Kantar Media analysis that highlights opportunities for Consumer Packaged Goods (CPG) manufacturers and retailers to efficiently monitor weekly competitive activity for key brands, categories, departments, and retailers.

“Digital coupons on retailer websites provide a purchase incentive to shoppers that are likely planning a shopping trip to that specific retailer. However, retailers also increased their participation in cooperative retailer FSI promotions with leading manufacturers for the sixth consecutive year in part because shoppers choose to engage with these promotions when they are actually writing their shopping lists and planning their shopping trips. Finally, retailers increased their advertising expenditures with nearly half of all of retailer advertising activity featuring specific brands in addition to the retailer,” said Dan Kitrell, Vice President of Marx Account Solutions at Kantar Media.

“Significant differences were observed among retailers across media and across weeks. In some cases, retailer activity accounted for a greater level of advertising and promotion support for a brand than the marketing support the brand received directly from the manufacturer. However, effective integrated retail programs reinforce a brand’s message to consumers and take advantage of the combined manufacturer and retailer advertising and promotion support to drive more trips and increase sales during key weeks,” concluded Kitrell.

Top Retailers by Channel

Significant shifts in advertising and promotion activity were observed among leading retailers across the Mass, Food, Drug, and other retail distribution channels. For example, Walmart had the greatest level of actual retailer advertising and FSI promotion pages in CY 2012, and increased their activity in these areas 12 percent and 47 percent respectively, while also increasing their digital coupon activity by 190 percent. However, Kroger had the greatest level of digital coupon activity in CY 2012 and increased the number of digital coupon events offered on their website by 4 percent versus CY 2011. Walgreen’s and CVS increased their activity across these three tactics and had the greatest increases in advertising expenditures among these retailers, increasing 29 percent and 23 percent respectively. Each of these retailers increased their participation in retailer FSI promotion pages and the number of digital coupon events distributed on their respective retailer websites. However, Target, Safeway, and Supervalu decreased their advertising activity in CY 2012 across the 18 media monitored by Kantar Media.

Mass, Food and Drug

“Retailers are targeting shoppers in the home to drive trips, transactions, and profits for their stores. Manufacturers may be able to gain a competitive advantage by aligning their program timing with weeks in which retailers have greater advertising and promotion activity. Higher levels of weekly retailer advertising and promotion may translate into increased retailer share of voice with the shoppers, increased shopper traffic into the stores, and increased dollar sales across departments, categories, and brands,” said Kitrell. “Some manufacturers are leveraging the strength of their brand portfolios as part of corporate scale themed events to create opportunities for retailer-aligned advertising and promotion support that may more effectively break through the clutter with shoppers, improve the return on promotion programs with retailers, and convert category shoppers into brand buyers in the store during these peak weeks,” said Kitrell.

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For more information at http://www.KantarMediaNA.com


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