New research conducted by dunnhumby media, part of dunnhumby, the global leader in Customer Data Science, has unveiled an unrealised potential worth £1.7bn for UK retailers – and around £100 million for each of the three largest grocery retailers in the UK – through not using media marketing properly.
Calculated using dunnhumby media’s Revenue Calculator – a tool that enables retailers to estimate their media revenue potential – retailers have the opportunity to generate an additional 1% of their retail sales with media, which is equivalent to £11billion across EMEA. Retailers can benefit from a virtuous circle consisting of rich data assets telling them where, when, what and how customers shop, the ability to close the loop between media channels and in-store sales, and a more tailored approach to communication with new and repeat customers.
The exact monetisation potential by business depends upon a number of factors, such as a retailer’s data and technology maturity, the span of their media coverage across different domains and their multichannel presence, % sales from own label and their willingness to give brands creative freedom in the advertising space. However, this opportunity to make new revenue from their data and media assets exists for all retailers.
“As it stands, only a handful of retailers are taking on the role of publisher. And for them, it’s a smart move, as the media opportunity is a big one,” said Jérôme Cochet, Global Managing Director at dunnhumby media. “Just think of the data and insights generated by browsing and shopping behaviour when compared to the actual products bought, across all the media touch-points retailers own, in-store and online.
“Over time, more retailers will look to adopt this approach to remain competitive. Continued pressure on profits means retailers are feeling greater urgency about identifying new revenue streams, such as monetising their media assets. That said, retailers must take the right approach to doing this, otherwise they risk losing customers.
Done correctly, it’s an opportunity to connect with consumers where and when it matters most – which ultimately is what every brand wants to do.”