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Retailers Aim To Generate More Ad Revenue From Their Websites


07/26/2018


Retailers Aim To Generate More Ad Revenue From Their Websites
The marketing drive that was used by vacuum cleaner maker Dyson with U.S. retailer Target Corp made use of the premise that people with hay fever hate dust.

People who likely had allergies from dust were shown the advertisements of Dyson’s cordless V6 vacuum on social media and its website by Target with the use of data about customers’ shopping habits. This resulted in sales of vacuum doubling among people who were regular purchasers of anti-allergy treatments and products like Claritin and humidifiers on Target.com and in stores
 
Kristi Argyilan, Target’s senior vice president of media and guest engagement said that data about real people and real behaviors “actually get a much stronger result because the fidelity of that data is so much richer.”
 
Efforts of luring big advertisers to their websites is being made by retailers such as Target and Walmart Inc and grocery chains such as Tesco Plc, with the aim of driving sales.  consumer goods companies such as Kraft Heinz Co and Procter & Gamble Co are the target of such retailers and they are being sold more ad space, pop-up banners and search-bar keywords. More is therefore being invested in advertising on websites of retailers where people come with an intention to make a purchase and where the individual shopping habits of such purchasers are being used to guide them to particular products.
 
Compared to selling goods in stores, comparatively significantly higher margins are available from online ad revenue.
 
And companies and platforms in the digital ad market such as Alphabet Inc’s Google and Facebook Inc are being rivaled by these firms through etching out a space for themselves. In 2017, Google and Facebook had generated a combined ad revenue of $114 billion. that was almost half of the total online advertisement revenues according to research company eMarketer.
 
It has bene a tradition among super markets to charge money from brands against placing their products at the most noticeable position in the stores. Now that strategy is being replicated by e-commerce giants Amazon.com Inc and Alibaba Group Holding Ltd on their online platforms as there is growth in online shopping. The companies are using data mining to create targeted advertising strategies and campaigns for particular customers or groups. According to JPMorgan, the revenues from advertisements only on Amazon.com could reach $6.6 billion by 2019 from $2.8 billion achieved in 2017.
 
According to Joe Zawadzki, chief executive of MediaMath, which helps brands manage ad campaigns, the instant success of retailers to the data that they possess about what is popular among customers puts them in a strong position even though retailers have a long way to cover to catch up with the likes of Google and Facebook.
 
“To the extent that the retailer can help the manufacturer, it becomes a new revenue opportunity and a way forward for them,” he said. “We’re very much at the start of this.”
 
(Source:reuters.com)