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The rise of Digital Retail Media increases year after year, and it is expected that the brand budget will reach 18% of the total investment in advertising during 2023. According to Florencia Bameule, Marketing Director of Mercado Ads, 3 out of 4 brands already include Retail Media in their investment plans.
Durable and technological goods
But what about the marketing of durable and technological goods? It should be noted that the category expects growth accompanied by the introduction of 5G networks, the increase in popularity of 'smart homes' and the development of augmented reality. Worldwide, it is estimated that between 2023 and 2027 the category will grow by 2.7% per year, and that 45.9% of the total billing of the home appliance market will be generated through online sales during 2023, with a sustained increase in the following years.
Buying trends in electro
The segment presents several particularities that are important to identify when reviewing commercial actions. First of all, an established trend is known as 'ROPO': research online - purchase offline.
Consumers use the website, social networks and other sources of information that allow them to search for products, such as ratings or reviews from other customers, to feel confident in their purchase, but ultimately make the purchase in the physical store.
When buying electronic products, the opinion of a professional always helps and is well received by consumers who, after detailed online research, prefer to finalize the purchase in the store after the advice or confirmation of their decision by an expert.
Another trend among consumers in the electronics industry is the demand for ultra-fast delivery and free shipping. Many brands and retailers have introduced free shipping above a certain amount of spend or have created loyalty programs with shipping incentives for their most loyal customers.
Always On Strategies
According to Pablo García, VP Marketing Commerce at Mercado Libre, more things happened in 15 years of digital advertising than in 70 or 80 years of offline advertising. That is why many digital marketing specialists consider that the best strategy to reach the target audience is that of 'Always On'. These consist of optimizing the interaction with consumers and instead of designing campaigns with short-term objectives, the method consists of increasing the number of new clients or making existing ones recurring.
This is one of the main reasons why special attention has been paid to Digital Retail Media in recent years. In the USA, during 2022 the category of home appliances increased spending in Retail Media by 15.3%, remaining in 5th position out of a total of 14 and it is planned to increase by 92% this year.
Digital Shelf: the importance of being seen
In an era where every dollar invested in online advertising is scrutinized, tools that allow you to monitor availability, assortment, price deviations, product descriptions, and reviews are key to measuring results. From Shalion we offer the 'Digital Shelf Monitor' solution, where you can evaluate all the variables opened by the Retailer and thus be able to identify where there are opportunities for improvement.
With Digital Shelf you will be able to answer the following questions at the Retailer and SKU level:
Availability: What percentage of products do I have available in online retailers? What percentage are out-of-stock? How to measure my visibility on the digital shelf? How is performing my Digital Shelf strategy?
Assortment: Which products are in stock and which are not? You will also access the URLs of each of the audited publications along with the day of publication.
Price: Increases or decreases of established prices?
Retailer: In which Retailer does the distribution target not be met? How to optimize my product content on the Digital Shelf? Are they complying with the standards of descriptions, titles and images to publish? You will be able to monitor the number of reviews and their weighting to know where action is needed.
Competition: Can I anticipate any commercial action in time? Knowing what others are doing will give you a competitive advantage.
Alert: you can create alerts to find out price deviations or out-of-stock products.
In conclusion, the Digital Shelf tool offers numerous benefits including better product visibility, increased sales, and the ability to run your online retail business more effectively. With our actionable Retail Media data you will be able to better your Ad performance on ecommerce strategy, to grow your share of Retail Media and to track the online price products.
Try Shalion's Digital Shelf monitoring tool to experience these benefits for yourself. Contact us for further information.
