Does Shopper Media Really Work? Your customers seem to think so.

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1 Does Shopper Media Really Work? Your customers seem to think so.

2 Shoppers want to hear from brands while shopping.

3 Does shopper media ads in the digital purchase path really work? We asked 2,000 consumers in order to find out. The answer is simple: Ads are more effective when people are researching purchases. While they re narrowing their choices. While they re clicking buy. That s when consumers are in a buying mindset while they re shopping on retail sites. That s when they are most receptive to marketing. This research proves how to spend ad budgets smarter: By tapping the consumer s buying mindset through shopper media. Wakefield Research surveyed adults ages 18+ in September 2013, testing the relevance and effectiveness of brand ads on related retail sites versus that on news sites. The results of the monadic survey yield a 95% confidence level, and are accurate +/- 3.1%. We asked 2,000 people how they feel about ads in the digital retail environment versus on traditional content publishers sites. Here s what they said.

4 CONSUMERS ARE 20% more likely to interact with an ad on a retail site.

5 AS WELL AS 21% more likely to purchase a product based on an ad seen on a retail site.

6 Retail sites are the mostused research destination for shoppers.

7 At the start of the purchase journey, the most common product research destination for shoppers is retail sites. Over half (56%) turn to sites for retailers that also sell offline, and 49% conduct research on online-only retail sites. That means five times as many shoppers are researching their purchases on retail sites as on news sites. 1 That reliance on retail sites holds true along the shopper s decision journey as they narrow down their options. Simply put, consumers research where they re most likely to buy. Connecting with shoppers at those critical decision points has historically been challenging for brands. Yet even now, as new opportunities to reach shoppers in the digital aisle arise that coveted middle portion of the purchase path brands haven t fully realized the benefits. While marketers often spend significant resources on brand sites, traditional content publishers, and social networks, many miss an opportunity to promote their presence in the retail environment the most-used destination for shoppers. With consumers increasingly doing pre-purchase research online and with mobile devices, it s critical for advertisers to be present at key points of research and transaction. JON ANSELMO, EVP, MANAGING DIRECTOR DIGITAL INNOVATION, MEDIAVEST

8 Retail sites are the most-used research destination for shoppers. Where do shoppers conduct product research online? 56% 49% 30% 24% 9% Magazine or news websites Social networking websites Brand or manufacturer websites Online-only retailer websites Retail websites

9 Consumers find ads on related retail sites 18% more relevant.

10 Ads on retail sites are 18% more relevant. How much more relevant do consumers find ads on related retail sites than ads on news sites? 27% HOME & KITCHEN 18% AVERAGE 16% TECHNOLOGY 12% FINANCIAL SERVICES 15% APPAREL

11 In our survey, half of respondents were placed in a control group, which saw several ads on popular news sites. The test group saw identical ads, but placed on a relevant retail site a technology retailer for tablets, a sporting goods retailer for running shoes, etc. Both groups were asked to rate the ads on three dimensions: How relevant they found the ad, how likely they were to click it, and how likely they were to purchase the product online or in a store.. Respondents who saw ads on related retail pages were 18% more likely to find the ads relevant. Those on news sites were also more likely to say the ads were not relevant. Ads for kitchen and home products were especially impacted by context: Respondents found ads on related home and kitchen retail sites 27% more relevant. ADS ARE MORE RELEVANT TO SHOPPERS ON RELATED RETAIL SITES THAN ON NEWS SITES ACROSS MOST VERTICALS.

12 Consumers are 20% more likely to interact with an ad on a retail site.

13 Presenting shoppers with ads they are open to and find relevant to their decision journey seems to lead more shoppers to click pushing them further down the purchase path. Respondents in the test group, which saw the ads on retail sites, were 20% more likely to click than those respondents who saw ads on news sites. There was also a slight decrease in the number of consumers who would not click the ad. Ads for home and kitchen products again showed the biggest bump (27% more likely to be clicked), followed by apparel at 23%. SHOPPER MEDIA INCREASES BRAND ENGAGEMENT IN THE MIDDLE OF THE PURCHASE PATH.

14 Consumers are 20% more likely to click ads on retail sites. How much more likely are consumers to click an ad on a retail site, versus on a news site? 17% 17% 13% 27% 23% AVERAGE TECHNOLOGY FINANCIAL SERVICES HOME & KITCHEN APPAREL

15 Consumers are 21% more likely to purchase a product based on an ad seen on a retail site.

16 Consumers are 21% more likely to purchase products online or in a store based on ads on retail sites. How much more likely are consumers to buy a product from an ad on a related retail site, than from an ad on a news site? 21% AVERAGE 22% TECHNOLOGY 25% FINANCIAL SERVICES 21% HOME & KITCHEN 20% APPAREL

17 The most important metric of all is of course the end of the purchase path the actual purchase. And again, ads on related retail sites proved more effective than those on new sites. Respondents who saw ads on related retail sites were 21% more likely to purchase the featured product online or offline. Those who saw the ad on a news site were also more likely to say that they would not buy the product. SHOPPER MEDIA GIVES MARKETERS A GREATER OPPORTUNITY TO SWAY AN ACTIVE SHOPPER DURING THE DECISION JOURNEY. A credit card ad showed the biggest increase in purchase intent, with respondents 25% more likely to purchase. Technology followed: Respondents who saw consumer electronics ads on a tech retail site were 22% more likely to purchase. The high impact on purchase intent in these categories may be due to consumers tendencies to do heavy online research for these products. Higher-consideration products frequently purchased online show the highest increase in purchase intent for ads on retail sites versus news sites.

18 Take Action. ADVERTISERS Place your ads where shoppers are most inclined to research, click, and buy: On retail sites. Contact Bazaarvoice Media to learn how to gain access to the largest network of retail sites. PUBLISHERS Monetize your retail site traffic by hosting brand ads. Contact Bazaarvoice Media to learn how to turn 100% of your retail site traffic into additional revenue Google and Ipsos OTX O Malley, Gavin. Shoppers In Buying Mode More Receptive To Online Ads. Online Media Daily. April publications/article/197709/shoppers-in-buying-mode-more-receptive-to-online-a.html#axzz2qh9pvsmm

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