Measuring the value of retail media

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Measuring the value of retail media
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The changing nature of out-of-home
1996
2006
Outdoor 70 roadside
Outdoor 49 roadside
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Time out of home UK
70
51
2006
35
population OOH
1996
0
Monday to Sunday
Midnight
Midnight
Noon
Source IPA Touchpoints
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Increase in mobility
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Increase in number of cars on the road
Source SMMT 2006 numbers in millions
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Increase in car ownership
Source Department for Transport
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Growth of out-of-town shopping malls
117
1993 34.2m
2003 74.2m
Trafford Centre, Manchester
Source Verdict on the High Street 2004
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Why we carried out the research

• Retail advertising market worth 50m
• JCDecaux partners with Tesco since 1999
• Lots of information on sales
• No coverage and frequency model

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The retail medium

• Total no. stores 1,575
• Total no. panels 8,512

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Objective 1

• Ratings
• Coverage
• Frequency

For the retail medium
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How we did it

• TNS Worldpanel now at 20,000 households

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• "TNS has made a significant investment in
  Worldpanel to allow much more understanding of
  our supermarket shopping habits. This has
  enabled us to carry out the detailed levels of
  analysis required for the JCDecaux project, which
  has produced the first real measure of retail
  media coverage and frequency. This is clearly
  beneficial for advertisers who are looking to
  understand exactly what the retail medium can
  achieve for them."
• Tracy Waring, Media Services Director,
  Worldpanel

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Retail Media Coverage
JCDecaux Stores - 450
Source TNS 52 weeks ending 21/05/06 2 week data
Base GB Households
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How we did it

• Coverage TNS frequency Ratings
• Tesco (450 stores) 33 2.3 77

Source TNS 52 weeks ending 21/05/06 2 week data
Base GB Households
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Validation
Source Tesco
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Validation
Source Tesco / TNS 52 weeks ending 21/05/06
2 week data. TNS Base GB Households
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Validation
Source Tesco / TNS 52 weeks ending 21/05/06
2 week data. TNS Base GB Households
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Validation

• JCDecaux calculation of ratings (based on
  transactions / no. GB households) 20-30
  different to TNS
• Further research 3000 exit interviews
• 20 basket shops 20 under 10 30 of all
  trips lasting 30 minutes or less

Source Marketing Sciences
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Validation
Frequency of visits to store
Average 3.3
Source Marketing Sciences
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Traffic count vs. travel survey
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How we did it

• Coverage Adjusted frequency Ratings
• Tesco (450 stores) 33 3.3 109

Source Tesco / TNS 52 weeks ending 21/05/06
2 week data. TNS Base GB Households
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What does this mean?
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Understanding the audience
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Objective 2

• Provide a segmentation tool to target lifestyle,
  lifestage and demographic groups effectively

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Free-from
Upmarket
Midmarket
Price Sensitive
New Food Club
Healthy
Convenience
Students
Finer Foods
Young Families
Older Families
Traditional
Fairtrade
Organic
Young Adults
Wine Club
Kids Club
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Destination Tesco - Targeted

• Purchasing, lifestyle and demographic
  information
• All 450 stores specifically analysed
• Planning tool identifying stores that index
  highest against particular lifestages /
  purchasing habits

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Example store profile
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Its worth paying extra for quality goods."
Finer Foods Shopper
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Finer Foods ShopperI like to cook more exotic,
interesting dishes.

• Generally older certainly more affluent
• Prioritise quality, environmental benefits and
  improved taste when shopping
• Organic and local produce top the shopping list
  over convenience and cost
• Food is a hobby and they enjoy experimenting
  with new products and tastes

Source dunnhumby
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What does this mean?
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To conclude

• Media opportunities at other out-of-home
  destinations are becoming increasingly important
  450 stores reach 28million transactions per
  fortnight
• POSTAR not initially set up to measure coverage /
  frequency for anything other than roadside
• JCDecaux set out to provide the necessary
  accountability now available for all retail media
• The segmented offering opens up the medium to new
  advertiser categories

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Destination Tesco
Thank you