Kantar Media: Double-digit increases across retailer coupons in 2013
MINNEAPOLIS, Minn. — Despite retailer advertising expenditures remaining relatively flat in 2013 compared with a year ago, promotional activity through free-standing insert coupon promotion pages, digital coupon events and feature ad pages all registered double-digit increases last year, according to data released by Marx, a Kantar Media solution.
Digital coupons distributed on retailer websites led the growth with a 39.5% increase, followed by a 25.6% increase in retailer participation in FSI coupon promotion pages and a 12.6% increase in total retailer feature ad pages distributed. Although total retailer advertising remained flat in 2013 versus 2012, several leading retailers had significant increases in their advertising expenditures, including Walmart, Kroger and Target, according to Kantar Media.
“Traditional advertising influences shoppers throughout their paths to purchase by reaching them in the home, in the car, at the office or anywhere that the shopper may be,” said Dan Kitrell, VP of Marx Account Solutions at Kantar Media. “FSI coupons effectively engage shoppers in their homes where shoppers opt-in to the advertising and purchase incentives while writing their shopping lists and planning their shopping trips. Digital coupons on retailer websites influence purchase decisions by delivering an incentive at what is often the last step prior to entering a specific retailer’s store. Retail feature ads are unique in that they reach shoppers both in their homes and as they enter the store, influencing specific brand choices and total shopping basket purchases during each individual store visit,” Kitrell said.
“For both retailers and manufacturers, it is essential to reach shoppers with a relevant message or purchase incentive where and when shoppers are making purchase decisions. These trends indicate that marketing dollars are increasingly being directed toward programs that communicate specific and easy-to-understand value to the shopper when the shopper is actively making purchase decisions. Although retailer TV, radio, Internet and other advertising may include specific price promotion information, it may not reach shoppers when they are seeking or receptive to this information. However, an FSI coupon promotion showing a retailer’s featured price combined with potential coupon savings or a retailer feature ad that mentions a digital coupon available on the retailer’s website are easy to understand and are likely being read by a shopper when they are writing their shopping list for the week,” Kitrell said.
Top Retailers by Channel
Significant shifts in advertising and promotion activity were observed among leading retailers across the food/drug/mass and other retail sales channels.
For example, Walmart had the greatest levels of actual advertising expenditures and the highest level of participation in retailer FSI promotion pages in 2013, increasing their activity in these areas 32.9% and 30.8%, respectively, according to Kantar Media. Walmart further benefitted from a 25.2% increase in digital coupon activity on their Walmart.com website and a 43.7% increase in retail feature ad pages distributed in 2013. However, Target kept pace with Walmart by also driving double digit increases across all four of these tactics in 2013.
Each of the three leading retailers in the drug channel decreased their advertising activity in 2013. CVS had the greatest decrease in retailer advertising among the three leading drug retailers with a 32.2% decrease, according to the data. CVS also decreased retailer FSI coupon participation by 37.3% and retail feature ad activity by 9.3%, with digital coupon support on CVS.com receiving the only increase among these tactics, up 10.2% in 2013.
“Aggregated annual retailer advertising and promotion trends may not tell the whole story,” Kitrell said. “Retailers compete to win shoppers and trips on a weekly basis. Manufacturers may be able to gain a competitive advantage by aligning their program timing with weeks in which retailers have greater advertising and promotion activity. Higher levels of weekly retailer advertising and promotion may translate into increased retailer share of voice with the shoppers, increased shopper traffic into the stores, and increased dollar sales across departments, categories and brands.”
“Manufacturers need to understand which departments and categories are being featured in their retailers’ weekly advertising and promotion activity, since this will influence where within the store the shopper is more likely to shop. This may uncover opportunities for improved promotion effectiveness with in-store merchandising that intercepts the shopper as they navigate the total store. By identifying key weeks and key categories at key retailers, manufacturers can improve their results during key selling seasons, new product introductions and other retail sales initiatives throughout the year,” Kitrell said.
Kitrell also stated that, "retailers should consider how best to leverage the brand advertising and promotion support that is offered by manufacturers to create purchase intent for the category and their brands. In some cases, retailer activity aligns with a manufacturer’s advertising and promotion support to increase the chances that the shopper will buy the manufacturer’s brand at the retailer’s store. In other cases, a retailer may take advantage of the manufacturer’s advertising and promotion support to drive shoppers into their stores and in front of specific categories, but the retailer may compete for the final purchase decision by promoting a store brand alternative to the manufacturer’s brand. How retailer and manufacturer activity aligns or competes will have an impact on purchase decisions, retail sales and promotion effectiveness."
March of Dimes to hold first Spirit of Beauty Luncheon
NEW YORK — March of Dimes New York Division is hosting in May its first Spirit of Beauty Luncheon in New York City.
The event, which is slated to be held annually, is scheduled for May 12 from noon to 2 p.m., at Cipriani 42nd St. and will honor Mally Roncal, president and founder, Mally Beauty; Sarah Brown, beauty director, Vogue; and Jacquie Tractenberg, president, Tractenberg & Co. Claudia Lucas, merchandising director for beauty, QVC; hair care and style legend, John Frieda; and beauty entrepreneur, Gail Federici will present the Spirit of Beauty awards.
Sponsors for the event are Conde Nast, Coty Inc., International Flavors & Fragrances, Hearst Magazines, L’Oréal USA, and Shiseido Cosmetics.
For 39 years, the March of Dimes Beauty Ball had the distinction of being one of the most highly anticipated social events in the cosmetic and fashion publishing industries; raising more than $35 million to support the organization. This year, the event is being presented as a networking luncheon.
"With the support of a stellar lineup of business leaders and industry giants, the inaugural Spirit of Beauty Luncheon promises to be the next great chapter in the storied history of an extraordinary event," said Shelly Siegel, executive director, March of Dimes New York Division. "The success and triumph of the Beauty Ball® is an inspiration to us, as we move forward with this new and exciting industry event."
Funds raised at this year’s Spirit of Beauty Luncheon will help March of Dimes continue the work it is doing to end prematurity and help give every baby a healthy start in life.
Advanced Care Scripts gains specialty pharmacy accreditation from URAC
ORLANDO, Fla. — Advanced Care Scripts, a division of Omnicare Specialty Care Group, on Friday announced that it has been awarded specialty pharmacy accreditation from URAC, a Washington, D.C.-based healthcare accrediting organization. URAC offers one of the only third-party, voluntary accreditation programs of this scope for the pharmacy benefit management and prescription services industries.
"ACS is proud to receive this accreditation," stated Amit Jain, SVP sales and marketing. "We are dedicated to providing quality care and meeting the highest industry standards for our customers and patients."
ACS manages and dispenses specialty medications in multiple disease categories, including cancer, infectious diseases, auto-immune disorders, multiple sclerosis and hemophilia. Its expertise across both the specialty and long-term care channels enables it to provide comprehensive solutions for prescribers and patients.