Digital Nearly Doubles Share of Retail Manufacturer Marketing Pie

Shopper marketing also on the rise

August 14, 2015 | Advertising & Marketing | Retail & Ecommerce

Traditional forms of retail marketing, including consumer promotions, traditional advertising and trade promotions, are all losing share of retail manufacturer marketing budgets, according to research from Cadent Consulting Group. But between 2012 and 2014, Cadent reported, digital increased from 7.1% to 12.5% of marketing budgets.

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The study also found a large increase in the share of retail manufacturer marketing spending on shopper marketing—efforts to turn shoppers into buyers. The share of all marketing spending going toward shopping marketing more than doubled, from 6.0% in 2012 to 13.5% in 2014, and, along with digital, was a major growth driver in marketing spending overall.

Cadent reported that though the majority of purchase decision-making occurs before shoppers ever enter a store, retailers still had ample opportunity to influence consumers while they're in-store. The time shoppers spend in a specific aisle alone influenced 17% of their purchase decision, according to the survey.

Retailer-specific coupons and offers, which were the most effective form of shopper marketing, accounted for 18.6% of shopper marketing spending in 2014—down slightly from two years earlier. The only form of shopper marketing spending that grew its share by more than 1 percentage point during the time period was in-store events, which accounted for 16.2% of spending in 2014. In-store events were reported among the least effective forms of shopper marketing, however, among consumers.