Enterprise Marketing & Promotions Management

Retail Advertising Strategy Gets a Makeover

By / December 2015

Research

As the economy begins to show signs of improvement, the very nature of retail advertising is starting to shift. In the recent Advertising & Promotional Practices Among U.S. Supermarket Retailers 2015 report, nearly half of retailers surveyed are changing their ad and promotional strategies to capture the incremental customer spending.

Ad and promotional strategies differ by retailer and trade class, but many are adopting the same approaches.

Testing Different Discounts

As consumers become less price-sensitive, retailers are rethinking their promotional strategies to focus on more than deep discounts. Instead, they’re putting extra emphasis on innovative categories and items to draw customers in stores.

Using the Store’s Brand as the Message

Retailers are leveraging their own brand promise as a way to build brand equity in an ever-growing competitive landscape. While most retailers are stressing messages of quality and service in their advertising, there are some emphasizing value, too.

Targeting retail advertising

Retailers are divided on targeted advertising outreach. Only 46% are customizing ads based on either demographics or psychographics from customer loyalty data. The remaining 54% aren’t targeting ads at all, but instead use shopper behavior to help shape their strategies.

Shifting delivery to digital

Blanket broadcast ads are on the way out for larger retailers. Those with loyalty programs are opting for a more personal touch by creating consumer-specific promotional messages and using digital to deliver.

To sum it up, while retailers are dialing back deep discounts and value messages, customers still want a good deal. So, the BOGO is here to stay. At least for now.

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