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BizReport : Ecommerce archives : October 12, 2011

CPG brands find online ads pushing in-store purchases

New data finds Consumer Packaged Goods (CPG) advertisers may have more reason to advertise online: an increase in in-store purchasing. The report, from dunnhumbyUSA and comScore finds online display ads pushing an increase in in-store purchases by 21%.

by Kristina Knight

Other interesting findings include:

• 42% sales increase for purchase-based targeting of ads
• 21% sales increase for non-purchase-based targeting

"Effective advertising has always been about increasing awareness, favorability and purchase intent in order to increase in-store conversion," said comScore Chairman Gian Fulgoni. "After several years of conducting advertising effectiveness research for CPG brands, we are learning how digital campaigns can lift sales in retail stores. It's now clear that online ad campaigns should be an integral part of any CPG marketer's integrated communications strategy."

The acquisition of Couponstar may give online brands a bit more reach. The comScore research is specifically about advertising, but research shows before making in-store purchases, many consumers are now going online to look for coupons. Expanding a coupon base from US-based into the UK and Europe via Couponstar could give some CPG brands more lift.

In the UK, research shows 57% of consumers have printed online coupons prior to making purchases in a supermarket/grocery store. Digital vouchers, meanwhile, are found to have 31% higher redemption rates than typical coupons.

Heading in to the holiday shopping season, the National Retail Federation predicts a modest increase in sales (2.8%) over 2010 numbers. The total holiday spend is expected to reach just over $465 billion; comparatively, 2010 saw a 5.2% increase in sales.

"Retailers are optimistic that a combination of strong promotions and lean inventory levels will help them address consumer caution this holiday season," said NRF President and CEO Matthew Shay. "While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009."

The NRF expects between 480,000 and 500,000 seasonal workers will be hired by retail outlets for the holiday rush.

Tags: 2011 Holiday Spend, comScore,, ecommerce, National Retail Federation, online shopping, retail shopping

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