Traditional brick-and-mortar retailers, for the most part, have experienced huge declines in foot traffic. Walking down the store aisles, consumers see an array of products, packages and brands. Visits to retail stores tend to help maintain and reinforce brand awareness across a wide array of brands, even those that are not purchased. Traversing a store aisle is analogous to driving on a superhighway and viewing billboards along the roadway. We don’t normally think of visiting retail stores as exposure to advertising but those packages on the shelves are little billboards advertising the different brands.
Some might argue that shopping online makes up for the lower levels of retail store visits. It does to some degree but online search functions allow you to see only what you want to see – and that means exposure to fewer brands. Also, if the online purchases are repetitive (say, for groceries), you might use past purchases as a guide to the next cycle of purchases – again limiting the number of different brands you will see.
COVID-related reductions in commuting and driving times have reduced consumers’ exposure to outdoor billboards and signage as well as roadside retail establishments. It’s obvious that brand awareness created by outdoor advertising would be negatively affected by reduced commuting and car driving. What might be less obvious is the downward pressure on retail store awareness. Retail sites along major highways are chosen partly for their advertising value. Highly visible retail sites tend to build and maintain store awareness. Lower levels of traffic reduce the advertising effect of these sites. So, reduced travel reduces awareness of restaurant brands, gasoline brands, food stores and most other retailers.
More time at home during the pandemic is leading to more time in front of the television and more time online. TV viewership is higher than it was before the coronavirus arrived, at least among those who can work effectively from home. The one-third to one-half of the population that work in the social-interaction portion of the economy (entertainment, travel, churches, restaurants, hospitals, etc.) or work in construction or factories are likely consuming media as they were before COVID-19. Online activity (not work-related) is likewise up since the start of the pandemic. So it’s likely that TV advertising and digital advertising are as effective – or perhaps more effective – as a result of millions of people working from home. The one counterpoint is the rapid growth of prerecorded shows and streaming of shows and movies, where TV commercials do not appear.
However, a massive shift of advertising dollars from traditional media (especially TV) into social media and online advertising over the past decade has in many instances led to reductions in brand awareness. The primary reasons: television is still the highest-impact media for most product/service categories and social media and other digital advertising tends to achieve high frequency but low reach (that is, digital often reaches fewer people).
The effectiveness of television commercials has declined over the past 20 years or so as major corporations have cut research budgets and the ad testing they fund. Advertising that relies on vetting via the “creative judgment” of marketing and advertising executives, rather than testing among consumers, leads to less effective advertising. These executives tend to have biases and hidden agendas (don’t we all have these weaknesses?) and possess too much industry, category and technical knowledge to be representative of the target consumer. Consistent testing of commercials and ads among the target audience can identify highly effective campaigns and executions and help companies and agencies improve the impact of all commercials and ads over time.
Digital ads suffer from the same “creative judgment” weaknesses but even more so. The cost to produce digital ads tends to be low compared to traditional TV commercials, so a smaller share of digital ads goes through any type of independent, objective research testing. The combination of shifting advertising dollars away from television to digital, combined with the lower effectiveness of digital ads, is contributing to the declining awareness numbers that many brands are experiencing.
There are a number of good advertising testing systems available from solid, reputable companies. The secret to success is choosing a system and sticking with it, so that you and your agency learn how to use and interpret the results from the system. It takes time to build up norms for your brand and your category and learn how to analyze the results from the advertising tests. To be successful, it’s important to set up standards so that every new ad or commercial is tested in exactly the same way, among exactly the same type of sample, using exactly the same system. It’s also important that all commercials be tested at the same level of finish. Rough executions yield different scores compared to finished commercials. Lastly, no one question can measure ad effectiveness. The scores from different types of questions must be modeled to yield an overall advertising effectiveness measure.
In the new digital world where shopping journeys are compressed and making a purchase is easier than ever, it’s harder for brand marketers to discern where to place their top-of-funnel media investments. If shoppable content can propel consumers all the way from discovery to conversion in one moment, and shoppers are purchasing in the same place they’re researching and evaluating, does brand marketing really need to be reserved strictly for the top?
The reality is no. Brand marketing is more fluid than ever and can now be optimized across the purchase funnel, especially with the rise of social commerce. For this reason, it’s important that brand marketers begin to pay attention to e-commerce sites—and not only in terms of display inventory.
Here are four reasons why:
While many publishers tout first-party data, it’s usually limited to behavioral information and shopping interests. Very few media partners are able to boast first-party transaction data. They can tell you how much traffic they delivered, but they can’t tell you what your true return on ad spend is.
E-commerce partners, however, monitor transaction data. This includes affiliate publishers such as Slickdeals, which employ third-party tracking from affiliate networks and often specialize in quality content creation. In fact, eMarketer recently agreed that “the affiliate channel now offers marketers considerably more premium and engaging content partners than what was historically available.” In many cases, these affiliate partners are both introducing customers to a new brand or product and converting the customer—often in the same session.
Thus, when placing brand advertisements across e-commerce sites, you can more clearly see when and how (new) customers engage and transact. You can discern all touch points, map a clear path to purchase and establish attribution without the hassle of matching anonymous audiences with various media partners across multiple sessions and channels.
Because of the aforementioned first-party data, e-commerce partners are able to target their users with unique accuracy. They can definitively tell you when someone has bought the item they were browsing for, and they can help you win over the consumers who love buying from your competitor.
As a result, you’re not only able to get an accurate sense of your return, but you’re also able to better maximize it through more effective targeting.
Brand advertisements that are positioned close to checkout will also increase your chances of driving new customers. McKinsey confirmed that 40% of consumers who changed shopping behaviors during the pandemic also made the decision to change brands due to factors of convenience and value.
Simultaneously, e-commerce sites are experts in maximizing both convenience and value. In addition to product and deal information being immediately available to the consumer (including everything from price comparisons to rewards information), conversion is only a click away.
So it makes sense that 35% of social buyers describe their most recent social commerce purchase to eMarketer as an impulse buy of a product or service that they were not previously aware of or considering.
Ditch your virtual billboards! Or at least ditch some of them.
With more and more social components being integrated into e-commerce sites, marketers have the chance to ignite conversations with customers as well as establish long-lasting discussions between consumers and their brand media. Such results are way more impactful than passive banner ads, which may or may not draw mindshare from the passing viewer.
Harking back to earlier points, this conversation is also facilitated close to the point of purchase, which again lends itself to higher impact and increased conversion. A friend talking about a brand they love as you drive down a highway is one thing, but a friend talking about a brand they love as you’re holding the product in the checkout line is another.
For these reasons (and probably a few others), it’s important that marketers begin considering e-commerce sites as viable brand media partners. At Slickdeals, we’ve found that advertisers see the most success when they engage in both traditional top-of-funnel branding as well as performance-driven campaigns. As the core social commerce platform propels consumers through the shopping funnel, smart e-commerce partners such as Slickdeals strategize with brands on everything in between to achieve a clear purchase path and an accurate return on ad spend.