CPGmatters: Analysis of Retail Digital Media Activity Helps Kellogg Better Shape Strategies
Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
Although the process of tracking and analyzing retail digital media (RDM) is new and still being defined, it already represents about a $750 million spend for manufacturers and is expected to grow, according to Scott Taylor, director, new business development, Path to Purchase Institute.
Between January and July 2012, Kellogg participated in a pilot with the Path to Purchase Institute and its new Online Advertising Survey & Insights Service (OASIS). OASIS allows subscribers to monitor and analyze digital advertising of such retailers as CVS, Kroger and Walmart.
This tool helps companies find the answers to several key questions:
- Are we breaking through with share of voice?
- What is the dominant message?
- What is the timing?
- Is it aligned with an in-store promotion?
- Is it intentional, counter-competitive?
- What is happening in different channels of trade and different retailers?
The data reveals important trends. For example, Kellogg learned that some retailers infused communications into their websites to build awareness of their private label brands. Walmart, Sam’s Club and Safeway were found to have been the main drivers of the cereal category for RDM.
Dan Cooke, director of digital shopper marketing at Kellogg, said in a recent presentation that having a comprehensive view and understanding of the coverage across retail enables Kellogg to question dominant assumptions at partners, make local and centralized changes to its media applications, and audit the effect on sales.
OASIS also provided greater insight into each manufacturer’s activation message, according to Mr. Cooke. Knowing that Post usually sends out a lot of coupons and advertising messages at the end of the quarter helps Kellogg better articulate its counter messages.
"We may not be present in store, but we can help offset some of the loss in share that week by helping to keep our brand and promotion in the consumer’s mind," he said.
Kellogg’s RDM activities will continue to evolve, aided by the near real-time information it is able to obtain. This helps account teams and agency partners respond to marketing shifts more quickly. In addition, its access to archives enables the company to refer to a past program when planning next year’s edition.
For the future, Kellogg is looking for more personalization. It is discussing with retail partners how it can share in the use of data they collect from their shopper loyalty cards. Mr. Cooke stressed. "We want to drive very specific behavior for shoppers in a particular market through partnerships with retailers."
What do you think are the benefits as well as the challenges of analyzing retail digital media activity? What unique insights does it promise to glean on shoppers?