2015 Winter Holiday Wrap Up
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- Frederica Greer
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1 2015 Winter Holiday Wrap Up
2 Outline 1. Introduction 2. Retail Ad Spending Top Advertisers; Media Mix; Timing of Spend; Message Strategies 3. Digital - Paid Search 4. Social Media Performance 5. Online Shopping Traffic 6. Summary 2
3 The Most Wonderful Time of the Year? November and December are high-stakes months for retailers 20% of full year sales 25% of annual ad spending Navigating the ever-shifting retail landscape The demanding digital shopper Managing the omnichannel shopping experience Creating an effective advertising strategy Cutting through the clutter Budget size, media mix, timing, messages, etc 3
4 Data Provided by Kantar Companies and Reporting Partners 4
5 Paid Ad Spend 5
6 The Billionaires Club Total Holiday Ad Spend (Billions) All Categories $28.36 Retail $4.33 Automotive $3.11 Telecom $1.63 Financial Services $1.36 Pharmaceuticals $1.35 Insurance $1.21 Restaurants $1.10 Source: Kantar Media 6
7 Retail Spending By Segment Ad Spend (Millions) Holiday 2015 % Change Total Retail $4, % Department Stores $1, % Home & Building $ % Apparel $ % Food & Drug $ % All Other $1, % Source: Kantar Media 7
8 Media Mix Gaining Share Holiday 2015 Share Point Gain vs YAG TV 49.2% +2.7% Digital 24.0% +1.0% Losing Share Holiday 2015 Share Point Loss vs YAG Newspaper 14.7% -3.1% Magazine 5.4% -1.0% Radio 5.4% +0.2% Outdoor 1.3% +0.2% Source: Kantar Media 8
9 Top 10 Retail Advertisers 2015 Holiday Ad Spend (MM) Retailer % Change vs $4,331 Total $249 $239 $170 $159 $113 $96 $92 $79 $73 $66 Source: Kantar Media 1.5% -3.1% -8.1% -11.0% 117.8% 9.7% -7.7% -6.1% -4.8% -24.7% 11.9% 9
10 When and How Did Retailers Spend? 10
11 Timing Of Ad Spend January 2016 Pre-Thanksgiving Thanksgiving Week Post-Thanksgiving 11
12 Budget Distribution Throughout Holiday Season Department Stores/Mass Merchandisers All Retailers 34% 14% 52% Target Neutral 33% 16% 50% $170 mm Kohls 35% 17% 48% $113 mm Walmart Back Loaded 29% 17% 54% $249 mm Macys 23% 12% 65% $239 mm Amazon 28% 13% 59% $159 mm JC Penney 28% 17% 55% $96 mm 0% 20% 40% 60% 80% 100% Pre-Thanksgiving (Nov 2-22) Week of Thanksgiving (Nov 23-29) Post Thanksgiving (Nov 30-Jan 3) Source: Kantar Media 12
13 Budget Distribution Throughout Holiday Season All Retailers 34% 14% 52% Front Loaded Best Buy 44% 7% 48% $79 mm Home Depot 44% 15% 41% $73 mm Thanksgiving Week Kay Jewelers 33% 20% 48% $92 mm Jared 37% 18% 46% $66 mm Lowes 34% 20% 46% $53 mm 0% 20% 40% 60% 80% 100% Pre-Thanksgivinvg (Nov 2-222) Week of Thanksgiving (Nov 23-29) Post Thanksgiving Wk (Nov 30-Jan 3) Source: Kantar Media 13
14 2015 Holiday Season Media Mix All Retail All Spending 100% TV 49% Digital 24% Newspaper 15% Radio 5% Magazine 5% 100% 100% 100% 100% 100% 76% 60% 96% 93% 75% 18% 28% 4% 2% 15% 2% 8% % 1% 1% -- 5% 5% 4% 2% Percentages may not sum to 100% due to rounding Source: Kantar Media 13
15 2015 Holiday Season Media Mix All Retail All Spending 100% 100% 100% 100% 100% TV 49% 29% 40% 55% 52% Digital 24% 66% 10% 18% 22% Newspaper 15% 2% 39% 2% 6% Radio 5% 1% 6% 21% 9% Magazine 5% 1% 5% 4% 10% Percentages may not sum to 100% due to rounding Source: Kantar Media 14
16 Post-Christmas TV spending continues past Christmas Fewer advertisers On Sale messaging Smaller budget advertisers re-emerge Amazon Prime video Mozart In The Jungle original series Macys Amazon Victoria Secret Sleep Number Sears TV Spend: Dec 28 - Jan 3 % of Total Holiday TV $ 35% 29% 11% 14% 14% $0 $5 $10 $15 Millions Source: Kantar Media 16
17 Message Strategy 17
18 On Sale Ad Messages Select Retailers % Of Holiday Spending* 80% 70% 70% 65% 64% 60% 50% 55% 49% 40% 37% 30% 20% 15% 14% 10% 0% 6% 3% 0% * Analysis Base excludes these media: Paid Search, National Newspapers, Network Radio and Outdoor Source: Kantar Media 18
19 On Sale Ad Messages as Percentage of Weekly Ad Spending Select Retailers 100% 90% 80% 70% 60% 50% 40% 30% 20% Macys Target Home Depot Kay 10% 0% 11/9 11/16 11/23 11/30 12/7 12/14 12/21 12/28 Week Beginning: Source: Kantar Media 19
20 Loyalty/Rewards Select Retailers % of Holiday Spending Advertiser Loyalty/ Rewards 56% 30% 17% 15% Macys Holiday Commercial 12% 12% Source: Kantar Media 20
21 Online Shopping Messages Select Retailers Kohls 52% Macys 26% Best Buy 23% Walmart 21% Target 13% 0% 10% 20% 30% 40% 50% 60% % Of Holiday Ad Spend 2015 Kantar Media 21
22 Celebrity Ad Appearances 22
23 Paid Search 23
24 Paid Search Insights Powered by Adgooroo, a Kantar Media company Summary data available through Kantar Media Ad Intelligence as part our multimedia reporting Google text ads delivered to desktops/tablets Top 20,000 advertisers Monthly spend; estimated clicks for top keywords 2015 Kantar Media 24
25 Google Desktop/Tablet Text Ads Top Retailers Holiday Ad Spend (MM) Retailer % Change vs. Year Ago $ % $ % $ % $ % $ % Source: Kantar Media analysis of Adgooroo data 25
26 Google Desktop/Tablet Text Ads Top Retailers Holiday Ad Spend (MM) Retailer % Change vs. Year Ago $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % Source: Kantar Media analysis of Adgooroo data 26
27 Black Friday Weekend Key shopping weekend, in-store and online Consumers are researching products, stores and offers A highly competitive period for paid search advertising 27
28 Paid Search During Black Friday Weekend Analysis Outline Research partner: Adgooroo Analysis period: Black Friday to Cyber Monday (Nov 27-30) Google text ads on desktop/tablet Three keywords groups 2500 Top Retail Product Keywords 161 Black Friday-Related Keywords 103 Cyber Monday-Related Keywords 28
29 Top Retail Product Keywords November Share of Ad Clicks $18.2 million of spending by 2,400+ advertisers 8% 6.8% Top keywords include: 6% 4.4% iphone6 laptops 4% 3.7% 3.6% 3.3% samsung galaxy 6 fitbit 2% engagement rings uggs 0% Source: Adgooroo 29
30 Millions Black Friday Related Keywords Share of Ad Clicks: Nov Paid Search Spend 15% $12 $10 $8 $ % 10.9% 10.0% 8.0% 7.4% 7.1% $6 $4 $3.7 5% $2 $0 Sep 27-Nov 21 Nov % Source: Adgooroo 30
31 Millions Cyber Monday Related Keywords Share of Ad Clicks: Nov Paid Search Spend 15% $3 12.3% 11.7% 10.7% $2 $1.8 10% 9.4% 9.2% $1 $0.6 5% $0 Sep 27-Nov 21 Nov % Source: Adgooroo 31
32 Social Media 32
33 Capturing and Converting Social Media Audiences Owned Media: branded content that marketers publish through their own accounts Data analysis partner: Unmetric Owned Media activity on Facebook and Twitter Volume of postings and quality of engagement Time Period: Nov 16 - Dec 27 33
34 Mass Merchandisers Department Stores Home Improvement Stores Specialty Retailers 34
35 # of Brand Posts Weekly Publishing Volume Peaks At Thanksgiving Thanksgiving Week Twitter Facebook 0 11/16 11/23 11/30 12/7 12/14 12/21 Week Beginning Date Source: Unmetric 35
36 % Of Posts % Of Tweets 60% 50% 40% 30% 20% 10% 0% Promoted Tweets Avg = 23% 100% 80% 60% 40% 20% 0% Promoted Posts Avg = 37% Source: Unmetric 36
37 Why Brands Pay To Promote Social Content Pay To Play Targeted Reach Better Engagement 37
38 UNMETRIC ENGAGEMENT SCORE Avg. Score Promoted Posts 13 Retailers Avg. Score Promoted 376 Organic 33 Top 3 Bottom Source: Unmetric 38
39 UNMETRIC ENGAGEMENT SCORE Avg. Score All Tweets 13 Retailers Avg. Score Promoted 96 Organic 102 Top 4 Bottom Source: Unmetric 39
40 Content Strategies For Success Examples of High Engagement Posts Holiday Decorations Special Events Merchandise 40
41 Content Strategies For Success Special Events Star Wars Theme College Football Awards Holiday Giving Black Friday Deals Make-a-Wish Foundation 41
42 Contests & Sweepstakes 42
43 UNMETRIC ENGAGEMENT SCORE Kohls Other 226 Sweepstakes 996 Home Depot Other 109 Football Awards 587 Old Navy Other 88 Sweepstakes 452 Macy's Other 79 Parade Engagement Score Source: Unmetric 43
44 E-traffic: Capturing Online Shoppers 44
45 How Do Consumers Allocate Their Online Shopping Time? Kantar Media partnered with Millward Brown Digital Examined data from The Compete Panel Reports on websites visited and amount of time spent Time Period: Nov 2 Dec 31 Universe of 147 shopping sites Share of Attention metric = Time spent on individual e-tail sites Total time on all 147 shopping sites 45
46 Index Online Shopping Spikes At Thanksgiving (And On Weekends) 180 Average Daily % Reach 147 Shopping Sites T giving Week /2 11/9 11/16 11/23 11/30 12/7 12/14 12/21 12/28 Source: Millward Brown Digital 46
47 Top 5 Retail Shopping Sites: Dec 2015 Rank Site % Share of Attention % % 3 3.1% 4 1.7% 5 1.7% Source: Millward Brown Digital 47
48 Attention Through The Holiday Season Index of Attention Share Site Norm Nov 2-25 Nov Dec 1-24 Dec Source: Millward Brown Digital 48
49 Attracting Millennial and Affluent Shoppers Millennials (Age 18-34) Approaching peak earning years View shopping as entertainment; browse vs. buy Desire for convenience and immediacy One-third shop online 3+ times per month* Affluents (HH Income $100k+) Current spending power Consumption is becoming more purposeful Justify spending based on its worth rather than price One-third shop online 3+ times per month* *Source: Kantar Media, TGI 49
50 Attracting Millennial and Affluent Shoppers Segmenting Online Shopping Sites Below average concentration Above average concentration years old Below average concentration Above average concentration HH Income $100k+ 50
51 Index: HHI $100k+ Demo Appeal of Select Shopping Sites Saks Neiman Marcus December 2015 Bloomingdales J Crew 150 Zappos Anthropologie Nordstrom Uniqlo 125 Macy s Gap Sephora 100 Sears Target Best Buy Ikea 75 JC Penney Walmart Amazon Etsy Index: Age Source: Millward Brown Digital 51
52 Summary Kantar Media
53 2015 Holiday Advertising Summary Ad Spending Higher spend (+1.5%) from retail category, but 7 of top 10 advertisers cut budgets TV and digital gained share of spend from newspapers and magazines Variations by retailer in their media mix and timing of spend through the season Volume of on sale ad messaging reflected the prevalence of discounting Paid Search Top retailer s digital ad budgets were concentrated in paid search Amazon, Target and JC Penney had high click share on Thanksgiving/BF weekend Cyber Monday losing potency 53
54 2015 Holiday Advertising Summary Social Media (FB & Twitter) Winners: Nordstrom, Macy s, Lowes (FB) and Kohl s (Twitter) Promoted posts generate higher engagement scores Brands replicated content strategies on each platform and played to their strengths Online Shopping Time Amazon s dominant share of online shopping time Thanksgiving weekend is a larger stimulus for runner up brands Attracting millennial shoppers specialty sites and luxury department stores are making inroads 54
55 To learn more about how Kantar Media s insights can help you drive to success, just contact our team: Competitive Advertising Insights Libby MacDonald P: libby.macdonald@kantarmedia.com Search & Digital Marketing Research Kali Whiting P: kwhiting@adgooroo.com Digital Intelligence Dina Kuhn P: dina.kuhn@millwardbrown.com 55
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