1、September 2022Retails New MediaPowerGet a first look at the growing power of retail media networks.Learn how brick-and-mortar brands can measure reach andtrack impact to transform the advertising space.“Retail media networks have turned retailers into ad moguls.Thats a huge change andnobody yet unde

2、rstands all the implications of it.”-Constantine von Hoffman,MARTECHRetailers Stepping Into Their Media PowerCompanies operating consumer-facing brick-and-mortar venues traditionally reliedon selling goods and services as their primary revenue stream.But recently,leadingretailers such as Walmart and

3、 Target have begun to leverage their immense storefleet into a powerful advertising platform.Online retailers have been tapping into the advertising power of their digital sites foryears by relying on various automated tools to show third-party advertisements torelevant consumer segments.But now,ret

4、ailers with a strong offline presence canalso leverage physical marketing impressions and focus their campaigns whilereaching consumers at the point of purchase.Retailers have long recognized theintent that drives a store visit,and understanding the full value of leveraging that visitto its full ext

5、ent is an important new frontier.Major retailers are continuing to see theirphysical visits outnumber their online ones.And in spite of the gloomy predictions regarding the future of brick and mortar retail,major retailers are continuing to see their physical visits outnumber their online ones.Month

6、ly numbers of visitors to Walmart and Target significantly outpace the brandsonline reach,according to web data from Similarweb.So although,up until recently,these brands have focused their media placements on their digital channels,it isbecoming increasingly clear that these chains physical stores

7、hold powerful andcurrently untapped advertising potential.2022 Placer Labs,Inc.|More insights at placer.aiOnline visitor data source:And with the recent rise in digital advertising costs,retail media networks arebecoming more attractive for companies looking to make the most of their ad budget.Retai

8、l media networks can also help brands reach rural communities,elderlyAmericans,and other consumer segments that are currently underserved by digitaladvertisers.This white paper explores several retailers on the cutting edge of the retail medianetwork revolution.Keep reading to find out how advertise

9、rs can use retail medianetworks to promote to hard-to-reach consumers,segment their ad spending,andoptimize their campaigns.2022 Placer Labs,Inc.|More insights at placer.aiLeveraging Retail Media Networks to Reach RuralCustomersResidents of rural areas use the internet less frequently,and have lower

10、 levels oftechnology ownership than their urban and suburban counterparts.As a result,companies that stick to digital advertising may have a harder time reaching ruralconsumers.Brick and mortar retailers popular in smaller markets can fill in the gapsand help brands promote their products and servic

11、es to this hard-to-reach audience.Brick and mortar retailers popular insmaller markets can help brands advertiseto hard-to-reach audiences.Dollar Generals Growing StrengthDollar General saw significant success over the pandemic,with the current economicclimate continuing to benefit the brand.Between

12、 January and August 2022,nationwide visits to Dollar General venues were 35.6%higher than they were betweenJanuary and August 2019,while the number of visitors increased 25.4%in the sameperiod.Visit numbers aggregate the visits to the chains various locations in a givenperiod,while visitor numbers t

13、rack the number of people who enter the brandsstores.The company has also been operating a media network since 2018.The DollarGeneral Media Network(DGMN)enables advertisers to reach Dollar Generalconsumers across the companys channels to build awareness both digitally and inphysical spaces.Advertise

14、rs with DGMN can display in-store bollard,blade,and wipestand signs,security pedestals,basket bottomers,and shelfAdz to deliver in-storemessaging from parking lot to purchase.Recently,Dollar General announced that its 2022 Placer Labs,Inc.|More insights at placer.aiad platform was now working with 2

15、1 new advertising partners,including Unilever,General Mills,Hersheys,and Colgate-Palmolive.Embracing the Power of the Small MarketAdvertising partners can leverage theDGMN to promote their goods and servicesto harder-to-reach consumers.Dollar General has been serving rural residents for years,with t

16、he majority of thecompanys stores located in communities with fewer than 20,000 residents.And whilethe brand is growing nationwide,Dollar Generals strength is particularly evident in 2022 Placer Labs,Inc.|More insights at placer.aismall markets which means that advertising partners can leverage the

17、DGMN topromote their goods and services to harder-to-reach consumers.Comparing year-over-three-year(Yo3Y)visit change to Dollar General stores inmetropolitan and micropolitan core based statistical areas(CBSAs)highlights thecompanys success in smaller markets.According to the United States Office of

18、Management and Budget,metropolitan and micropolitan CBSAs have over and under50,000 residents,respectively.Since January 2022,monthly Yo3Y visit growth to DollarGeneral venues in select Texas micropolitans has consistently outpaced foot traffic tonearby metropolitan areas.While the Sherman-Denison m

19、etro area saw August 2022foot traffic hit a solid 24.5%increase over August 2019,the Gainesville,Texas microarea around 35 miles east of Sherman saw its foot traffic increase 54.5%in thesame period.2022 Placer Labs,Inc.|More insights at placer.aiDollar Generals presence across a significant number o

20、f smaller markets means thatadvertising partners can use the growing DGMN to increase awareness and drivepurchase consideration among these harder-to-reach consumers.Increasing Ad ImpressionsIn the digital space,three tech giants Alphabet(previously Google),Meta(previouslyFacebook),and Amazon enjoy

21、over 60%of the digital ad revenue in the UnitedStates.This means that companies are competing for impressions on a small numberof platforms and smaller brands geared at specific consumer segments may need tospend significant advertising budgets to outbid the larger players.Retail medianetworks creat

22、e additional advertising platforms,and enable advertisers to diversifytheir ad spend,increase their(physical)impressions,focus on more specializedchannels to better reach their audience,and potentially reach customers at theirhighest point of intent.Retail media networks create additionaladvertising

23、 platforms and potentially reachcustomers at their highest point of intent.The Albertsons AdvantageAlbertsons launched its retail media network,Albertsons Media Collective,inNovember 2021 with the goal of delivering“digitally native,shopper-centric andengaging branded content to the companys ever-gr

24、owing network of shoppers.”Currently,the grocers media network is primarily digital,but Albertsons head ofretail media products Evan Hovorka recognizes the importance of leveraging in-storeassets to deliver a unique advertising experience.The company is testing out smartcarts that link with“Albertso

25、ns for U”loyalty program to display ads to shoppers and 2022 Placer Labs,Inc.|More insights at placer.aiAlbertsons is likely to find more ways to reach in-store consumers as it continues todevelop its retail media network.The chain is also one of the most popular grocers nationwide.With the exceptio

26、n ofMarch and April 2022,when inflation and high gas prices temporarily halted growth,the brands monthly visits and visitor numbers have consistently exceededpre-pandemic levels.Monthly visits for Albertsons in August 2022 were up 5.7%andmonthly visitors were up 5.4%on a Yo3Y basis.This means that a

27、dvertisers withAlbertsons can increase their reach and grow their physical ad impressions just bydisplaying their ads in Albertsons locations and tapping into the chains growingvisitor base.2022 Placer Labs,Inc.|More insights at placer.aiOptimizing Physical Ad CampaignsLooking beyond Albertsons nati

28、onwide average foot traffic trends reveals someimportant regional differences.Between January and July 2022,visits to the brandsincreased 4.6%in Wyoming on a Yo3Y basis,while foot traffic to the brands locationsin Oregon jumped 18.5%compared to January through July 2019.This means that abrand lookin

29、g to reach consumers in Oregon can contract with Albertsons medianetwork to show its ads to a fast-growing pool of visitors.A larger visitor count translates to anincrease in unique ad impressions,whilemore visits from fewer visitors can driverepeated exposures.Diving deeper into the data reveals an

30、 additional layer of insight.Some states withonly moderate visit growth are seeing a surge in visitor numbers,while other statesare seeing a drop in visitor numbers but a rise in visits.A larger visitor counttranslates to an increase in unique ad impressions and more people exposed to theads,while m

31、ore visits from fewer visitors translates to more overall impressions thatcan drive repeated exposure among a smaller group of visitors.So advertisers canuse segmented foot traffic data to decide where to focus their marketing dependingon the goal of the campaign.For example,Wyomings moderate increa

32、se in visits hides a significant spike invisitors,which means that advertisers to Albertsons venues in Wyoming can get theirimpressions before a large number of different potential consumers.Meanwhile,Oregons 18.5%increase in visits is the result of just a 9.4%increase in visitors soAlbertsons is cu

33、ltivating an increasingly loyal following in the Beaver State,and the 2022 Placer Labs,Inc.|More insights at placer.aigrocers advertising partners can expect that the same visitors will be exposed to theirbrand repeatedly.So companies that want to increase unique ad impressions and build awareness c

34、anadvertise to Albertsons customers in Wyoming,where their ads will be seen by a largenumber of new people.But in Oregon,companies may want to promote a campaignthat focuses on moving Albertsons visitors through their funnel.In order to accurately assess the ad distribution patterns in each location

35、,brandsoperating retail media networks need to understand both visits and visitors trends ineach region and for the chain as a whole.2022 Placer Labs,Inc.|More insights at placer.aiInsights from Consumer Cross-VisitsAdvertisers with retail media networks can use foot traffic data to refine theirgeog

36、raphic audience by identifying the consumer preferences of a givenbrick-and-mortar brand on a store or city level.CVS Launches a Media NetworkIn August 2020,CVS Pharmacy launched its media network,the CVS Media Exchange(cMx).The company estimates that 76%of U.S.consumers live within five miles of at

37、least one store,and the cMx allows partners to tap into the chains reach by givingadvertisers access to CVS online and offline channels,including in-store ads.Although CVS has been closing locations recently,the brand is still one of thestrongest players in the brick-and-mortar retail space.Its 2022

38、 visit numbers haveconsistently exceeded pre-pandemic levels nationwide,and data from CVS locationsin leading cities shows that its Yo3Y visits per venue and visitor numbers are evenhigher.2022 Placer Labs,Inc.|More insights at placer.aiCVSs nationally distributed fleet meansthat the brands location

39、s in differentregions attract distinct consumer bases.CVS carries a varied product mix of daily essentials in addition to its healthcareofferings,so the brand attracts a wide range of consumer segments.And the chainsnationally distributed store fleet means that CVS has locations in different regions

40、that attract distinct consumer bases who do not all have the same lifestylepreferences.By using foot traffic data to understand the regional consumerpreferences of CVS consumers beyond the store,advertising partners can refine theirmarket and make the most of the cMx.2022 Placer Labs,Inc.|More insig

41、hts at placer.aiReaching Health and Wellness Consumers Through the cMxDifferent regions have different fitness cultures.Chains catering to health-consciousconsumers can use retail media networks and foot traffic data to focus their effortson areas where inhabitants exhibit a high demand for regular

42、workouts.Analyzing cross-visit data from CVS locations across five major urban centers in theU.S.shows that the percentage of those who also visited gyms or fitness studiosvaried significantly across each DMA.In the New York area,62.7%of those whovisited CVS in Q2 2022 also visited a fitness venue d

43、uring that period,in contrast withonly 38.0%of CVS visitors around Dallas-Ft.Worth,TX in the same period.Thisinformation can help advertising partners in the health and wellness space decidewhere to place their campaigns.2022 Placer Labs,Inc.|More insights at placer.aiRefining the Geographic MarketL

44、ooking at cross-visit data on a city-wide level can provide a sense of the consumerculture in each area,but advertisers that dive into foot traffic data for individualstores can refine their messaging even further.On average,43.8%of CVS visitors in the Chicago DMA also visited a gym in Q2 2022.But d

45、rilling down to the top CVS locations in the city reveals that the rate ofcross-visits varies significantly from location to location.Both the E 53rd Street and W103rd Street locations have a relatively high share of visitors who visit fitnesslocations 52.5%and 49.2%,respectively.Meanwhile fitness c

46、ross-visits were at just36.6%for the South Stony Island Avenue location.Advertisers promoting health andwellness related products and services may want to focus on the 103rd St.and 53rdSt.CVS locations.2022 Placer Labs,Inc.|More insights at placer.aiDiving into a customers behavior and preferences o

47、utside the store can help retailmedia network operators and advertising partners find the areas and locations bestsuited for each type of ad.Online Consumer Behavior Informing In-StorePreferencesCross-visit data is one way to identify consumer preferences beyond the physicalstore.Advertisers can als

48、o analyze digital preferences of offline visitors to focus theirmarketing on the most appropriate locations.Advertisers can also analyze digitalpreferences of offline visitors to focus onthe most appropriate locations.Macys Continued PopularityOver the past couple of years,Macys has been finding way

49、s to reinvent itself andoptimize its store fleet and foot traffic data indicates that the retailers efforts arepaying off.In the first half of 2022,Macys exceeded its H1 2021 overall visit andaverage visits per venue numbers and posted a positive year-over-year(YoY)visitorcount.In Q2 2022,despite th

50、e wider economic challenges,Macys visitors,visits,andaverage visits per venue saw YoY increases of 3.4%,4.0%and 9.9%increases.2022 Placer Labs,Inc.|More insights at placer.aiLeveraging Macys Media Network to Reach the Right ShoppersLike CVS,Macys launched its media network in August 2020,and by Febr

51、uary 2021the Macys Media Network was already generating$35 million annually.In addition toadvertising on the companys digital channels,Macys also offers partners the use ofin-store screen displays,package inserts,and the brands iconic billboard in New YorkCitys Herald Square.2022 Placer Labs,Inc.|Mo

52、re insights at placer.aiAdvertisers can optimize their advertisingby analyzing the differences in consumerprofiles between a chains various stores.Advertisers that understand the differences in consumer profiles between a chainsvarious stores can optimize their advertising efforts.While looking at v

53、ariations incross-visit trends is one way to identify interested brick-and-mortar consumers,divinginto visitors digital behavior and online preferences can also provide valuableinsights.Tools such as Spatial.ais GeoWeb,which tracks online engagement with varioustrends and topics by neighborhood,can

54、reveal how offline consumers behave online.An index score of 100 indicates that consumers in an area have an average interest ina given topic,while scores over(or under)100 indicate that consumers are more(orless)interested in the topic when compared to the national average interest.We used Spatial.

55、ais GeoWeb tool to analyze the online behavior of consumers in theTrue Trade Areas(TTA)of five Macys locations in the Philadelphia,PA DMA andfound that residents of the different TTAs stores showed differing indexes.Forexample,the Macys in the King of Prussia Mall location showed a high index of 161

56、 in“Mens Business Clothes Shoppers,”while the Cottman Ave.location had an onlyslightly above average index of 102.This means that advertisers of mens businessapparel may see more results by focussing their advertising on visitors to the King ofPrussia location.2022 Placer Labs,Inc.|More insights at

57、placer.aiMacys Herald Square BillboardAdvertisers that use retail media networks do a lot more than just reach in-storeshoppers.Stores exist in the physical world,so advertisers can also reach passers-bythrough physical venues windows,blade signs or in the case of Macys,through itsHerald Square Bill

58、board.Here too,foot traffic data can reveal the consumerpreferences of people walking by the sign.We looked at the online behavior in the TTA around the traffic pin on the cornerwhere the billboard is located(Broadway/6th Ave and 34th Street in New York)tounderstand which advertisers might benefit m

59、ost from a billboard at that location.While the“Mens Business Clothes Shoppers”category was over-indexed compared tothe national average,as would be expected in midtown Manhattan,“WomensFashion Brand Shoppers”had an even higher index.“Gen Z Apparel Shoppers”were 2022 Placer Labs,Inc.|More insights a

60、t placer.aiover-represented,but“Leather Good Shoppers”and”Athleisure Shoppers”wereunder-represented.So a brand that carries both elegant wear and athleisure maywant to display its less casual clothing lines on the billboard.Understanding how consumers behave both on and offline can help retail media

61、networks and advertising partners promote their campaigns most effectively.Retail Media Networks Revolutionizing AdvertisingTo transform their physical store fleet into a media network,brands and companiesneed to analyze the reach of each venue.The same chain operating in multipleregions may be reac

62、hing different types of consumers in each area,or even in variousneighborhoods of the same city.These distinct audiences may have contrastingproducts,brands,and shopping preferences.2022 Placer Labs,Inc.|More insights at placer.aiRetailers that leverage their brick andmortar presence can transform t

63、headvertisement space as it exists today.Retailers can also partner with advertising partners who wish to promote goods andservices not carried by the retailer.For this to succeed,the retailer will need toanalyze how consumers behave outside of its stores.Understanding whatcharacterizes the overall

64、behavior of consumers in each locations trade area willallow the retailer to reach a larger audience and truly compete with the digital giants.And by leveraging their brick and mortar presence,brick and mortar retail cantransform the advertisement space as it exists today.Key Takeaways1.Retail Media

65、 Networks Could Outperform Digital CounterpartsDigital media networks are a critical part of retail growth,but in-store medianetworks offer massive potential.The underutilized resource can actuallyenable brands to reach larger audiences in physical stores than through theirdigital offerings.In addit

66、ion,the ability to tap into the real-time intent thatdrives a visit adds a major opportunity for those who leverage it properly.2.Companies can leverage retail media networks to advertisehard-to-reach audiencesCertain segments,such as rural residents and older consumers,may bedifficult to reach thro

67、ugh digital marketing.Advertisers that want to expandtheir audience to these communities can leverage media networks operatedby retailers such as Dollar General with a significant presence inunderserved areas.2022 Placer Labs,Inc.|More insights at placer.ai3.Retailer media networks can boost impress

68、ion numbers andcomplement digital marketing effortsRetail media networks create additional advertising platforms,and enableadvertisers to direct their ad spend to the type of physical ad impression thatbest serves their campaign goals.For a given retailer,a larger visitor countmeans more people expo

69、sed to the ads and translates to many unique adimpressions that drive awareness.More visits(even from fewer visitors)translates to more overall impressions that reach the same consumers andcould help advertisers drive decisions.There are also benefits to the reach ofspecific retail networks,includin

70、g the ability to emphasize key audiences andto align product mix and focused campaigns on a per-region or evenper-location basis.4.Cross-visit data can help advertisers reach the right audienceAdvertisers with retail media networks can use foot traffic data to refine theirgeographic market by identi

71、fying the consumer preferences of a givenbrick-and-mortar brand on a store,city,state,or nationwide level.Diving intothe customers behavior and preferences outside the store can help retailmedia network operators and advertising partners find the areas and locationsbest suited for each type of ads.5

72、.Online shopping and behavior data can inform physical marketingstrategiesUnderstanding the digital preferences of offline visitors can help advertisersfocus their marketing on the most appropriate locations.Diving into the onlinepreferences of visitors to physical stores empowers retail media networks andadvertising partners to promote their campaigns most effectively.2022 Placer Labs,Inc.|More insights at placer.ai