9/30/18 THE CIRCULAR E-EVOLUTION, SPOTLIGHT ON THE PAID DIGITAL DISTRIBUTION FOR PRICE CHOPPER MEET GLEN & BLAKE MEET PRICE CHOPPER

Transcription

1 THE CIRCULAR E-EVOLUTION, SPOTLIGHT ON THE PAID DIGITAL DISTRIBUTION FOR PRICE CHOPPER GLEN BRADLEY & BLAKE EISLER OCTOBER 2018 MEET GLEN & BLAKE Partnering together on ecircular efforts since 2014 MEET PRICE CHOPPER Headquartered in Upstate New York, the Golub Corporation operates 133 Price Chopper and Market 32 stores in 6 states in the Northeast. *1 3 3 in clu d es M arket Bistro an d P rice Ch op p er Limited 1

2 OUR MISSION Helping people feed and care for their families since MEET PRICE CHOPPER To be a trusted resourc e for fresh ideas that prov ide inspired meal solutions for everyday living To provide fresh, healthy products with an emphasis on a well-living lifestyle To give enhanced customer service by sharing subject knowledge and expertise To be a c ommunity partner c ommitted to enhanc ing people s liv es by supporting charities and sponsoring local events. MEET ORACLE DATA CLOUD Audience. Context. Measurement. Convergence of: Bluekai, Datalogix, AddThis, Crosswise, Moat & Grapeshot Leader in identity and audience via ID Graph Largest data asset feeding digital media ecosystem Leverage data to enhance media activation & sound measurement 2

3 ODC FRAMEWORK Th e R i gh t A u d i e n ce Demographics Consumer Profiles Th e R i gh t C o n te xt Brand Suitable Positive Environment The Right Outcome s from input signals to business results Th e R i gh t A tte n ti o n Duration Screen R eal Estate Consumer Behavior THE BACKGROUND WORLDWIDE CONSUMER BEHAVIOR IS CHANGING Change in Average Daily Media Consumption Worldwide -55% Magazines -46% Newspapers -14% -12% Radio Cinema -9% Tel evi sio n -6% Ou td o o r Internet

4 9/30/18 WORLDWIDE CONSUMER BEHAVIOR IS CHANGING Change in Average Daily Media Consumption Worldwide -55% M agazi n es -46% Newsp ap ers -14% R ad i o -12% C i n ema -9% Tel evi si o n -6% Ou td o o r 193% In tern et -100% -50% 0% 50% 100% 150% 200% 250% CONSUMER BEHAVIOR IS CHANGING PROJECTED DIGITAL AD SPEND $ $ $ $ $ $ % % % % % % 2019 Di gi tal ad sp en d i n g % % % % % 8.6 % % Of to tal med i a ad sp en d i n g Sour ce: em ar ket er 4

5 BUT THE SHIFT FROM PRINT TO DIGITAL IS SLOWER THAN INDUSTRY TRENDS AND CONSUMER SHIFTS Where to begin? ECIRC JOURNEY BEGAN IN 2015 Paper Removal + ecirc Distribution Test Test design & optimization strategies developed Weekly Ad Media Mix analys is 2018 Summer Programmatic Campaign ODC/Price Chopper Circular Revolution Res earch Q ecirc Targeted Facebook Campaign Q Q ecirc Targeted Facebook Campaign 5

6 A MAJORITY OF PEOPLE STILL READ CIRCULARS.. 80% 78% 76% 74% 72% 70% 68% 66% 64% 62% 77% Did you read a grocery circular in the last 7 days? 74% 74% 60% Read 1 or More Source: Pr ice Chopper Resear ch BUT THAT VARIES BY AGE.. 90% 80% 70% 67% 74% 74% 81% 81% 74% 60% 50% 40% 30% 20% 10% 0% To tal M arket Read 1 or more circular Source: Pr ice Chopper Resear ch AND HOW THEY PREFER TO RECEIVE IT 70% 60% 66% Preferred method of receiving the circular 62% 59% 50% 40% 30% 20% 16% 18% 20% 17% 18% 23% 10% 0% Paper Digital Both or Neither Source: Pr ice Chopper Resear ch 6

7 PRICE CHOPPER Digital media estimated at 20% in % 40% 98% 60% Traditional Digital COLLECTIVE GOAL & OBJECTIVE Drive in-store engagement & sales Identify optimal Weekly Ad media mix that is high performing Establish and grow a digital brand experience for PC/Market 32 MARKETPLACE CONDITIONS STATE OF THE BUSINESS DATA INSIGHTS Center s tore down Competition UP ecommerce imperative Market 32 growth Rebranding announced in 2014 Market 32 opens in 2015 Evolving target cus tomer Analytics that increase visibility to the bus ines s : Engagement Segmentation Proximity Data Profitability analytics 7

8 What is the optimal media mix for Price Chopper? Weekly Flyer Print ecirc FB Campaign - Digital 1. THE ART OF SHOPPER IDENTIFICATION FOR PRECISION BASED MARKETING LOYALTY SEGMENTATIO N BANNER SELECTION AD ZONE COMPLEXITY PRICE SENSITIVITY DIRECT MAIL NON-REDEEMER S 8

9 2. THE ART OF ALIGNING OFFER, CREATIVE & TECHNOLOGY Trend: Perishables, private brands & deli/fresh prepared will yield greater allocation Offer Strategy Scoring/Offer Identification CPG 1 Weekly Ad Category Item 2 CPG 3 Price Chopper 3. MEDIA CHANNEL SELECTION Single Channel selected for test and supporting budget Strong match to ODC ID Graph High reach rates achievable weekly Historical performance and benchmarks established 4. KEY PERFORMANCE INDICATORS Weekly Optimal Reach & Frequency Closing the Loop via ODC ROI 9

10 What does performance look like? STRONG LIFT LEVELS FOR TOTAL STORE SALES 4.00% $ per HH Lift 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q2 Q3 Q4 PERFORMANCE PAYS OFF X ROAS X ROAS

11 9/30/18 What are the right metrics to drive outcomes? SEGMENTATIO N IS EVERYTHING Core Frequent Loyals Opportunity Value Seekers New Shoppers Core Deal-Driven Shop more than 3X per week Spends $45 on average Made their first purchase at Price Chopper within the last 91 days Shops 2X per month with high deal-seeking behavior Shops 2X per week, and tends to shop the whole store Sour ce: Or acledat acloud PIN WORTHY WEEKLY AD PROMOTIONS BEING SERVED TO ENGAGE SHOPPERS AND STIMULATE A TRIP 2017 Price & Item 2018 Fresh Food Lifestyle Imagery 11

12 FINGER ON THE MEDIA PULSE Facebook 2.0 Brilliant Basics So l ve fo r a business objective On e p rimary objective Do not focus on engagement Brand-building cre ati ve Mobile-optimize yo u r creati ve; frame for mobile, plan for sound-off, highlight the brand early (in the first 2-3 seconds) and often (including in th e th u mb n ail) Campaign duration Consider a duration that will co ver at l east o n e purchase cycle Better performing camp ai gn s tend to be at least 10 weeks Strate gi c fre que ncy Serve p eo p l e at least 1-2 per week (APAC may require higher levels) Distribution matters: fo cu s o n getti n g th e mo st people to be reach ed with in that optimal range Op timal Use automatic placements to b u yin g keep p l acemen t options as wide as relevan t given objectives and creati ve Op timize fo r reach, brand awareness or video views ch o o se wh i ch al i gn s mo st cl o sel y to yo u r tru e objective Audience Target a broad, yet qualified au d i en ce of al l potential buyers Absolute reach Reach enough people to achieve yo u r b u si n ess objectives higher reach can help increase total sal es i mp act % R e ach Reach the right % of your audience to ach ieve o p timal frequency distribution and mai n tai n effi ci en cy Influence individual purchase behavior Scale to meet business objectives PERFORMANCE TO INFLUENCE PRINT TO DIGITAL BUDGET SHIFTS Step 1 was Ad Zone consolidation AdZone1 AdZone2 AdZone4 AdZone7 AdZone8 AdZone11 AdZone12 AdZone14 AdZone011C 30% 15% 12% 5% 8% 7% 10% 9% 4% % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs % Ex pos ed HHs 19% 15% 13% 7% 10% 9% 11% 10% 6% % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions % I m pr es s ions Or ac le Dat a Cloud Conf ident ial WHAT S NEXT? Or ac le Dat a Cloud Conf ident ial 12

13 PLATFORM DIVERSIFICATION EXPAND CAMPAIGN REACH THROUGH PROSPECTING Price Chopper Most Lo yal C u sto me rs High-val u e net new shoppers Start wi th verifi ed buyers of your stores Hundreds of thousands of so u rce vari ab l es u sed Advanced machine learning sel ects fi n al vari ab l es th at Households in geofootprint are scored acro ss au to, retail an d CPG purchase, demographic and online behavioral data are mo st p red i cti ve o f target within geo -footprint & ran ked allo win g for flexible scale Dis play Video Cont ent Benchm ar ks Aler t s Tr ending Heat m aps Moat Live Tim e Inventory Geo Devic e Recur r ing Expor t s Connect ed TV Br and Saf et y Audience Viewabilit y Diagnos t ics Expor t s Creative I nsights Br and Scor e API Ad Server Data Ref er r er Viewable GRP 13

14 IN MARKET CAMPAIGN High Performing Audience Segments Fresh Food Lifestyle Imagery Bes t in Clas s Programmatic Media Ac tivation Optimal Test & Learn Campaign Des ign for Performance 14