Paper Vs. Digital Ad Circulars: Why You Need Both
In an increasingly wired world — 155 million Americans are on Facebook; cell phones have a 93 percent penetration rate; and 82 percent of Americans are online — the decision to go digital with an ad-circular budget would seem to be a simple and prudent acknowledgement of progress on the march. But such a move also would be premature.
There's still surprising power in paper. A recent Nielsen shopper survey revealed 90 percent of consumers still want print circulars. Another 60 percent of consumers reported reviewing either direct mail or newspaper inserts at least once a week. The only digital option with that kind of reach is e-mail.
Research shows printed material is still a great tool to generate in-store foot traffic, help consumers find favorite-product deals and locate widespread sales. However, while rumors of the death of the paper circular have been exaggerated, the future is clearly online. For now, retailers supporting store brands with ad-circular marketing must strike a balance between the old and the new — and be prepared to recalibrate as shifting consumer tastes and demographics tip the scales toward digital delivery.
The secret to success for both print and media campaigns is taking a disciplined approach to measurement of what's working.
Are you asking yourself, "Who won the week?" and "How did I stack up against the competition?" in terms of page-by-page attributes? Do you keep a department-by-department win/loss scorecard, including display compliance? Efforts such as these will help get below the surface of the ad.
Digital
Do you have a good understanding of past shopping behavior? It will improve the ROI of online campaigns designed to drive offline sales.
Are you using creative messaging with price and promotion on specific items? It's been found to be particularly effective.
Are your messages targeted to new shoppers? They — not existing shoppers — will drive much of your success online.
Adjust to win
The case for moving toward online has been building for years. Printed circular response promotion lifts are less effective than they were roughly five years ago, delivering about a 20 percent return on investment in 2010, compared to 28 percent in 2005.
Although demand for paper is still high, more than 70 percent of shoppers in the Nielsen survey also reported wanting e-mail and traditional websites. Almost one-third also were interested in social media and smartphone applications. The interest was even higher among younger shoppers, who reported wanting information from all available sources.
'For now, retailers supporting store brands with ad-circular marketing must strike a balance between the old and the new — and be prepared to recalibrate as shifting consumer tastes and demographics tip the scales toward digital delivery.'
Digital delivery methods also enjoy advantages in areas such as reinforcing and rewarding loyal shoppers.
To remain a strong part of the circular mix for another five to 10 years, print will need to be a more precise and efficient vehicle. The growing influence of the web and social media, combined with the younger, more diverse populations embracing it, will be the forces shaping what constitutes consumer relevancy and the shopping experience of the future.
A hybrid approach is one way to hedge your bets in an ad-circular marketing strategy.
'Straight Talk delivers monthly store brand insights from Nielsen, New York. Todd Hale is Nielsen's senior vice president, consumer & shopper insights.'