Study: Programmatic, Data Optimize Retailers' Holiday Campaigns

Findings from a new report by global ad tech firm Adadyn reveals how small and medium-size retailers can use programmatic media to optimize their holiday campaigns.  The Adadyn-backed study, conducted by third-party research firm MORAR (previously Redshift Research), highlights what types of ads resonate most with consumers and how to build successful campaigns with retargeting, dynamic creative, and programmatic media.

One of the biggest findings from the study was that when ads are relevant and well-placed, consumers actually find them helpful. In fact, 69% said they find ads from sites they visited recently through retargeting useful, and 63% said they were more likely to click on the ad if it contained an image of the item they had viewed previously.

“With our retail customers, we recommend retargeting as the first 'push' marketing vehicle any e-commerce marketer should consider,” said Raj Beri, COO, Adadyn, via email. “It can help increase conversion rates and overall sales very efficiently, and creates scale that goes beyond 'pull' marketing initiatives like search or affiliate marketing channels.”

The study found that programmatic ad technologies can help small and medium-size retailers that have yet to even start using real-time data for the purposes of display advertising. However, Beri points out that because many of them have experience with programmatic through search advertising campaigns, “it’s not too far a stretch for them to understand display retargeting.” 

Retargeting is based on intent signals. For example, if a consumer is on Zappos.com and looked at a pair of Timberland boots, the algorithmic-based signals pick up that interest and show ads and promotions for those boots. “It's the first intent-level targeting option beyond search.  And the data-based approach of doing this programmatically takes it from a ‘one-to-many’ to a ‘one-to-one’ marketing approach,” Beri explained.

So how should omnichannel retailers leverage their data in real time to optimize campaigns and boost holiday sales? 

The Adadyn study suggests that once retailers have a firm grasp on retargeting, the next logical use of real-time data is for them to expand into prospecting. This process takes existing shopper data and extrapolates it to find like-minded consumers who have yet to shop on the retailer's site. This is a strategy for broadening reach and hopefully adding new customers.

With Black Friday already here, and Cyber Monday looming on Monday, Nov. 30, retailers need to capture and interpret data properly. For example, if they have a consumer segment that only buys sale items, or that has bought during previous sale periods, retailers should try to target these same consumers again.

Or retailers may identify people who have shopped, but never purchased -- which is a potential indication that they'll be ready to buy during the Cyber Monday sales period.

Such scenarios are worth segmenting and testing to determine if specific offers will work with specific pockets of the retailer’s audience, Beri noted.

In addition, Beri said that using real-time data to display dynamic creative based on what retailers know about a customer's intent, and then delivering ads programmatically, can have a positive effect on ad yield.

Among the report’s other findings:

  • 59% of those surveyed are more likely to click on seasonally-oriented ads like holiday shopping.
  • One in three respondents shop online for consumer goods at least once a week.
  • Men are more likely than women to shop online for consumer goods at least once a week (36% and 29% respectively).
Next story loading loading..