Digital advertising spend in retail eclipses all other industries, but at such a substantial cost, everyone selling online wants to know how they can boost their return on ad spend (RoAS). eMarketer reported in 2016 that retailers spent $16 billion on paid digital advertising and forecasted that figure would jump to $23 billion by 2020.
Marketers in retail have a wide range of responsibilities to get customers in the physical or virtual door, such as driving brand awareness, customer loyalty, and retention. The role also covers increasing website and in-store traffic and multi-channel growth. Not to mention, development and management of best-in-class eCommerce and integrated marketing strategies that increase the retailer’s digital footprint.
All of these central tasks that make up a marketer’s role in retail all boil down to traffic and conversions. The questions that keep retail marketers up at night include: are we getting enough traffic to hit our sales and revenue projections? If not, how do we drive more people to our stores and website to buy? Digital advertising helps with this, but with the massive amount retailers are pouring into ads, maximizing the return on that ad spend is only half of the challenge. The other side is from a competitive intelligence standpoint. All retail marketers should ask themselves often: do we have a good idea of what our true tier one competitors are doing from a marketing perspective?