Retail marketing effectiveness recovers

Retail marketing effectiveness in the UK stood at a six-year high in 2022, according to the Data & Marketing Association (DMA UK), as the sector bounced back from the worst effects of the pandemic. 

Why it matters

The Retail Marketing Effectiveness 2023 report, produced in partnership with Sagacity, found that the retail sector bucked a trend of overall declining effectiveness. And it has done so with a balanced approach to campaign strategy – driving short-term response through promotions and discounts, while keeping one eye on the long term by also investing in brand-building activity.

Takeaways

• A balanced approach has resulted in growth across the board in terms of brand (where the number of effects has more than doubled year-on-year), response (61% growth in effects), and business effects (67% growth).
• In addition, a focus on online growth and customer retention, plus the success of DIY retailers have all contributed to this performance.
• Ad mail, email, and radio and audio are key response marketing channels for retail advertisers — delivering promotions, discounts, and offers to existing customers and new acquisitions alike.
• TV, out-of-home, press and magazines, and experiential marketing are key brand-building channels.

Key quote

“Data- and technology-driven campaigns have proven themselves to be particularly adept at boosting response campaign effectiveness, while highly creative campaigns find their strengths in boosting the number of brand effects per campaign” – Ian Gibbs, Director of Insight at the Data & Marketing Association (DMA UK).

Sourced from DMA