In the pre-digital world, Product, Price, Promotion, and Place (the classic 4 Ps) ruled the shopper marketing world.
Even though consumers have been transitioning to online channels as their primary media outlets, they still want the same quality of information. They want to know about products that fit within their budget, and they expect that information to be easily accessible.
For a long time, retailers relied on circulars and catalogs to inform customers of their products, prices, promotions, and store locations. They collected vast data sets across numerous customer touch points so they could group their customers into relevant audience segments and market to them accordingly. Savvy marketers figured out that customizing circulars and catalogs by interest turned occasional shoppers into loyal customers.
Then the world changed. Consumers ditched catalogs for everything online. The cost of printing and postage skyrocketed, and competition for the consumer’s eyeballs and mindshare increased exponentially. Retailers now cling to the few nanoseconds of the consumer’s attention and work tirelessly to capitalize on it.
How do marketers present the 4 P’s to consumer in this environment? Although numerous marketing channels complete parts of the 4 Ps, the most effective and encompassing medium is video.
Video Killed the Circular Star
Consumers love digital video, and that’s a really good thing for shopper marketing. With new technology, brands can leverage their expensive 30-second TV spots to create highly personalized video ads targeting consumers wherever they are in the digital universe.
Video ads have always been effective marketing tactics for shopper marketers, but digital video presents even more opportunities for the 4 Ps.
You should use a data driven approach to feature products that are relevant to each and every audience segment. For instance, a CPG company with multiple frozen food products can use past shopping data to determine which customers are married and have kids and which are single, and then serve them ads featuring products that are most relevant to them (hint: one is more likely to buy multiple boxes of chicken nuggets each week).
The same would go for a company with laundry detergent products. The brand can target moms for the heavy duty detergent, with a video of grass- and mud-stained clothes going into the washer and coming out sparkling clean. For the young woman, the video ad can highlight a product formulated for delicate clothes that need to be washed by hand. Both ads start with the same creative, but they end with a highly relevant product for the viewer, thus educating them to buy.
Some retailers offer discounts, some sell at list price. Each video ad can feature the exact price the targeted consumer will see at his or her local store. By including the most relevant, up-to-date prices for each product, retailers can avoid any in-store surprises for consumers.
Promotions, deals, and sales are all great ways to incentivize people to come in-store for purchases. Retailers can use video campaigns to build a sense of urgency around a deal or sale that would appeal to a specific consumer. Brands can easily add elements that promote upcoming sales, event countdowns, and product discounts that are most relevant to the individual viewer.
No one likes to arrive at a store only to learn that it doesn’t carry a particular brand or product. Video ads can eliminate that frustration by showing each consumer where he or she can buy the featured product, right down to a 2–mile radius, using a hyper-local map.
What does this all look like? See this recent campaign from Crest, who used a video to create a highly personalized digital circular ad. Each video featured a relevant product, the appropriate store name (Walgreens or CVS), that store’s nearest location, the cost of the product in that store, and the relevant promotion for that store. It’s like PennySaver on steroids.
By showcasing the different Ps through personalized video, brands can effectively reach consumers on a medium they’re already using with information that’s relevant to them. This gives brands and shopper marketers a clear advantage (like market share at key retailers) and allows them to use their data in newer, more effective ways.
Most importantly, this is an enormous benefit for consumers. People will never stop looking for promotions and deals, but the way they find them is changing dramatically. Personalized video is the shopper marketer’s new best friend because consumers love watching them; in fact, video ad views increase 100 percent annually. They’re powerful, high-end, flexible, and effectively convey the 4 Ps marketers know and love so well. We just have to translate them to the preferred mediums of consumers — which means personalized video.