Thursday 11 July 2024

Co-op’s Retail Media Activities Boosting Brand Sales In Neighbouring Grocery Stores

 Co-op’s Retail Media Activities Boosting Brand Sales In Neighbouring Grocery Stores



Research by Co-op – in partnership with Circana – shows retail media activity for brands in its convenience stores not only boosts its own sales but also generates up to four times more sales in surrounding grocery outlets.

Brands seem to benefit from a halo effect when advertising in Co-op shops, which can boost sales in the longer term. Circana found a ‘global beer brand’ RM Co-op campaign increased sales by 12% in Co-op stores + a 3% uplift in nearby non-Co-op stores.

The non-Co-op stores uplift was 4x total incremental sales value in Co-op stores. Circana said the impact on total sales due to halo stores where the sales uplift occurred and the larger pack sizes bought in those stores.

Dean Harris, Head of Co-op Media Network, commented: “The Co-op Circana results show when brands activate campaigns with Co-op, there is an immediate positive sales impact [not only] in our store, but also with competitors in the surrounding area. As an RMN, our main goal for the brands that advertise with us is to generate sales regardless of where that customer purchases the product.”

Convenience is a frequently shopped channel for top-up missions, often in addition to a bigger shop. The data showed that Co-op shoppers engage the most with other grocers, which provides convenience retail media with an extra amplifier effect on halo sales.

Harris continued: “The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Coop stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.

“This halo effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”
Mark Hurst, EMEA Head of Retail Media at Circana: “As the advertising industry continues to expand traditional retail media inventory and accelerate digital and addressable channels and privacy regulations limit traditional measurement methods, retailers are increasingly in need of more agile and accurate ways to measure campaign performance across channels and tactics.
“Being able to analyse media lift through a range of sales-based measurement approaches, including Test & Learn, tactical comparisons and mid-campaign analysis, results in faster and more cost-effective decision making, enabling retailers like the Co-op to demonstrate brand impact and how it drives incremental value.”
Co-op launched its retail media network early this year, claiming it was the first in the convenience sector.

Namnews Implications:
* Think of the halo-impact when several mults are advertising the same brand via retail media…
* “(Our Goal) to generate sales regardless of where that customer purchases the product.”
* i.e. A compelling sales proposition.
* Begging the question: Who needs blunt traditional media?
hashtagRM

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