Complementing Traditional Ads With Digital? Use Data to Focus on Neighborhoods
Retail marketers understand the need to incorporate digital into their marketing mix, but they may not know what specific (and proven) tactics can increase the success of their campaign initiatives. Too often retailers turn to digital ads to drive e-commerce traffic and traditional ads to drive foot traffic to their stores. By approaching campaigns this way, retail marketers are missing the boat on the enormous power of digital to drive in-store traffic. In fact, research from Forrester predicts that the web will influence $1.4 trillion of in-store sales by 2014.
In today's advertising world, there are an increasing number of mediums to consider when planning a campaign. Oftentimes ad campaigns are put into "traditional" and "digital" buckets instead of leveraging them together to increase their effectiveness. By using digital to complement traditional, retailers can drill down to specific customer segments for more precise and effective campaigns. For instance, a campaign might focus on traditional media (e.g., television, print or direct mail) or it might rely on display ads to reach prospects. Rather than looking at these strategies as siloed efforts, it's time to move them under one umbrella, where traditional ad components can be complemented by localized digital ads.
With most consumers shopping within a 15-mile radius of their home, retailers know the importance of local advertising strategies, even if they're a national chain. They're using a variety of tactics to reach local audiences, from SMS texting campaigns to reach customers in specific cities to geotargeting social outlets to match specific demographics, retailers understand the general areas where their customers live. In many cases, however, a city or demographic isn't as targeted as it could be. Why spend extra ad dollars on neighborhoods that are irrelevant to your brand?
For retailers, having knowledge about specific neighborhoods within a certain radius of their stores leads to campaign savings and increased revenue. More importantly, it leads to incredibly effective digital campaigns that drive in-store traffic. Thanks to "Big Data" — i.e., the technology methodology that stores and processes petabytes of data — this level of pinpointing is possible within digital ad campaigns. Retailers and the brands they carry can leverage billions of data points across all U.S. neighborhoods, including offline point-of-sale data, social media data, videos, music, local web pages, online magazines, demographic, interest data, psychographics and more. This data enables retailers to target campaigns and promotions to a highly specific demographic of prospects, leading to the following: