#RMN MEANING COUPONS SERIES#
The first step to understanding RMNs and their potential – and the focus of Part 1 of this 4-part series – is to have a clear understanding of the advertising vehicles and marketing tactics that today comprise the arsenal of retail media. Sophistication: CPG companies, by virtue of their size and history, are the most sophisticated and inventive marketers, driving much of the innovation and advancements in the art and science of marketing, and thus deploying a much more diverse and advanced set of media and marketing vehicles in their campaigns than players in other verticals do.Data: Given the high-frequency of purchases and the vast number of product SKUs, the data captured by FMCG retailers’ point-of-sale (POS) systems, which includes every product in every customer’s basket, is of tremendous value to analytics teams looking to construct advanced algorithms to measure return on advertising spend (ROAS).That kind of velocity of engagement creates ample opportunities for marketers to drive awareness, alter behaviors, and motivate purchases. Frequency: Most people shop at FMCG retailers at least weekly – much more frequently than shopping for other non-CPG products.CPG budgets account for 40% of all marketing dollars spent on advertising, promotions, and other marketing activities. Budgets: CPG companies are the world’s top marketing spenders.
There are several reasons to focus on FMCG retailers when analyzing RMNs: Retail holds the promise of becoming the next true “ mass medium” and attracting a meaningful share of the massive brand budgets that today mostly go to TV, radio, print and online digital media. Club – e.g., membership discounters Sam’s Club, Costco, and BJ’s.Mass – e.g., big-box retailers Walmart, Target, and of course, Amazon, and.
Dollar – e.g., Dollar General, Dollar Tree, Family Dollar,.Drug – e.g., pharmacies Walgreens, CVS, RiteAid,.Food – e.g., supermarket operators Kroger, Albertsons/Safeway, Ahold,.They are generally referred to as fast-moving consumer goods (or FMCG) retailers and include the following five classes of trade: The observations and analysis throughout this 4-part series apply to any retail class of trade, but I will focus my attention on retailers that sell consumer packaged goods (CPG) and represent a significant proportion of annual CPG sales. And let’s not forget the retailer, who is probably singlehandedly responsible for the current excitement surrounding RMNs: Amazon. These include the largest players, such as Walmart, Target, Kroger, Best Buy and The Home Depot, but also top drugstore chains Walgreens and CVS, supermarket chains Albertsons and Ahold, and even dollar chains like Dollar General and regional grocers like Wakefern, Hy-Vee and Southeastern Grocers (SEG). Over the past 2-3 years, many major retailers have launched retail media offerings, in some cases organizing and marketing them as separate entities from their core retail business. Utilize the data the retailer collects from its daily operations to reach and target these same (and other) consumer audiences on media properties (both physical and digital) owned by other companies (a.k.a.
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