Supermarketing: TV’s Retail Magic
Last year 5,500 retail stores closed, up 300 from 2015. 2017 was a tough year for retailers, and this has continued into 2018 with the big news of Toys R Us closing. Last Thursday, Sarah and I headed over to Thinkbox’s “Supermarketing: TV’s Retail Magic” event to understand what’s next for retail. In light of the weaker pound and growing business costs, more retailers are finding innovative ways to combat the declining market. A great example of this is Amazon’s ‘try before you buy’ scheme, which was rolled out to keep up with changes in consumer behaviour.
Matt Hill, Director at Thinkbox, talked about how much profit retail businesses should expect from media investments (in the short and long term). The majority of retailers are currently splitting their budgets 50/50 between activation and brand building campaigns. This is a far cry from the proven 70/30 split favouring brand building campaigns.
Activations drive sales spikes, but research is proving that these short bursts do not support brands on a long term basis. This is likely because activations appeal more to an existing customer (where a bigger basket is the main objective). Focusing on long term brand building and connecting with current and potential customers can help brands grow their businesses.
We were taken behind the scenes of a successful TV brand campaign from Sofology, and learned how they owned the ‘when you get home’ feeling. They chose TV for its scale and mass reach, to keep the Sofology brand front of mind for both passive and active consumers. The clever creative was impactful and delivered cut-through. The ad received high recall and immediate search increases for the brand (and Owen Wilson). Within one month it had already paid for the entire campaign.
The event finished with some great advice for comms to keep their head up and to feel proud about what they’re delivering to these retail brands.
Media Account Manager