Jeff Smith from Nielsen presentation deck from Digiday Retail Summit, 7.29.14

1. Jeff Smith
EVP Global Solutions Marketing
July 29, 2014
DIGITAL AT THE HEART OF
THE RETAIL EXPERIENCE

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TOPICS FOR TODAY
Digital is becoming fundamental to the consumer experience for
any (and every) retailer
Retailers are pushing the envelope when it comes to incorporating
digital
There is a significant opportunity to improve the use of digital,
particularly in marketing

3. DIGITAL IS BECOMING FUNDAMENTAL
TO THE CONSUMER EXPERIENCE

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CONSUMER USE OF DIGITAL IS PERVASIVE
Source: Nielsen Cross-Platform Report, eMarketer
TV
Mobile
Online
Radio
Print
2013
11:09
4:31
2:21
2:19
1:26
0:32
2010
9:36
4:24
0:24
2:22
1:36
0:50
Hours spent consuming media by the
average American every day

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WHEN IT COMES TO RETAILING, THE DIGITAL
STORY STARTED AWAY FROM THE STORE
Percent of adults that purchased items online
Source: Nielsen Scarborough USA + Release 2 2009-2013, Adults 18+
52%
54%
56%
59%
62%
2009 2010 2011 2012 2013
+19%

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… BUT MOBILE HAS BROUGHT DIGITAL
INTO THE STORE IN A BIG WAY
Source: Nielsen Performance Management Practice

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DIGITAL IS CHANGING THE RELATIONSHIP WITH
CONSUMERS
Source: Nielsen Performance Management Practice, Nielsen Scarborough
of U.S. adults share
their opinions
about products &
services by posting
reviews/ratings
online
of U.S. adults went
online to see
consumer reviews
on their computers
in the past month
Shoppers are having real-time digital conversations
with retailers and manufacturers… and about them
26% 18% 28%
More likely to say
social media is very
important for
finding out about
products and
services
35%
More likely to say
social media is very
important for
showing support
for their favorite
companies or
brands
Mobile shoppers are more likely than other
consumers to use social media

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RETAILERS AND MANUFACTURERS ARE
BECOMING CONTENT PRODUCERS ONLINE
Source: Content Marketing Institute
Percent of B2C marketers using content marketing
10%
do NOT use
content
marketing
90%
DO use
content
marketing
Change in amount of
B2C content creation
(last 12 months)
Significantly
more
More
Same amount
40%
21%
4%Less
32%
Unsure 3%

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WHAT DO CONSUMERS WANT FROM
RETAILERS IN A DIGITAL WORLD?
PERSONALIZATION:
YOU’VE GOT MY DATA: USE IT TO MY ADVANTAGE, AND TO MAKE ME FEEL GOOD—
AND KEEP IT SECURE
I CAN TALK TO ANYONE, ANYWHERE, ANYTIME:
IF YOU WANT TO BE THE ONE I’M TALKING TO, YOU MUST BE ABSOLUTELY CREDIBLE
I LIVE IN A FAST-PACED WORLD:
I KEEP UP, AND I EXPECT YOU TO KEEP UP, TOO
I INTERACT WITH YOU THROUGH MANY DIFFERENT CHANNELS:
MAKE SURE WHAT I FIND IS CONSISTENT ACROSS ALL OF THEM
I AM ALWAYS ON:
MAKE SURE YOU ARE ALWAYS ON ALSO
RECOGNIZE I HAVE CHOICES.
I SEEK VALUE, I SEEK IT NOW, AND I’M PREPARED TO GO ELSEWHERE TO GET IT
Source: Nielsen, “The Future of Retailing and the Rise of Digital”

10. RETAILERS ARE PUSHING THE ENVELOPE
WHEN IT COMES TO DIGITAL

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TARGET TAKES YOU FROM SHOPPING ONLINE
TO SHOPPING IN-STORE
Source: Target

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WALMART IS PRICE MATCHING POST-SALE
Source: Walmart

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TESCO & PEAPOD EXPERIMENT WITH VIRTUAL STORES IN
SUBWAYS
Tesco / Home plus
in Seoul
Peapod in Chicago

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WHOLE FOODS IS PUBLISHING ONLINE
Source: Whole Foods

15. THERE IS A SIGNIFICANT OPPORTUNITY
TO IMPROVE THE USE OF DIGITAL,
PARTICULARLY IN MARKETING

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WE EVALUATE MARKETING EFFECTIVENESS
ON 3 DIMENSIONS
REACTION
How did it change
behavior?
RESONANCE
How did it
change attitudes?
REACH
What audience
did I reach?

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WHEN IT COMES TO DIGITAL REACH,
WE SEE A BIG OPPORTUNITY FOR IMPROVEMENT
Based on 11,300 retailer campaigns, digital advertising
hits its target audience…
78%
51%
55%
32%
22%
49%
45%
68%
F18-49
F25-54
M18-49
100%
P18-49
On-target Off-target
Source: Nielsen Online Campaign Ratings data

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WHEN IT COMES TO DIGITAL RESONANCE,
RETAILERS LAG BEHIND OTHER VERTICALS
Source: Nielsen Online Brand Effect data
Awareness Attitudes Favorability Purchase
Intent
Preference
BrandLift%
Retail Norm All Verticals Norm
Opportunity to adopt digital brand advertising
effectiveness best practices to drive brand lift

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MEASURE ROI FOR MORE EFFECTIVE ADVERTISING
SPEND
Source: Nielsen Buyer Insights data
Retailers can demonstrate the combined online and
offline sales impact of digital campaign exposure
+25% lift in Total Sales
+11% lift in Dollars spent
per Buyer
+13% lift in percentage of target audience
to make purchase

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RETAILERS CAN DO MORE WITH MOBILE MARKETING
Source: Nielsen The Mobile Tipping Point Study 2014; Nielsen Scarborough Mobile Insights Study
Mobile as a percent of digital ad
spend remains relatively low …
… yet consumers are open to
mobile advertising
Accurate, consistent measurement
is key to making this a success

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THE FUTURE OF RETAIL HAS DIGITAL AT ITS HEART
• Mobile is core to the retail experience
• Digital shopping may have less to do with home delivery
and more to do with transforming the customer experience
• The evolving consumer relationship –
personal, direct, and immediate
• Digital marketing as a foundation
and an opportunity