1. Quality online environments 42% more cost effective for advertisers
Ads that appear in quality environments are 42% more cost effective for advertisers based on levels of engagement, viewability, above-the-fold placement and dwell time.
According to the research by GroupM and Newsworks, a premium exposure is 58% more likely to be 100% in view for at least five seconds. In quality digital environments – defined as a website where consumers have a deeper relationship or affinity with the brand – are 98% more likely to be placed above the fold, and 273% more likely to prompt a hover from a user.
They also produced stronger response rates, according to the report, with average uplifts of 10.5% for brand awareness, 19.2% for ad recall, 9.7% for brand perception and 10.3% for recommendation intent.
Source: GroupM and Newsworks
2. Inflation cools as retailers fight back against tough trading environments
Shop prices fell by 0.5% in June, a significant easing in deflation from May’s decline of 1.1%. This is, however, the 62nd month of shop price deflation.
Non-food deflation eased by almost a percentage point in June to 1.6%, from 2.5% in May, the lowest rate since December 2017.
Food inflation was steady at 1.2%, with fresh food inflation up slightly and ambient food inflation inching down.
Source: British Retail Consortium
3. Consumers are opening more marketing emails, and clicking
Emails are opened and read 18.1% of the time, up from 17.3% last year, with consumers still just as likely with click-through rates remaining at 1.9%.
Finance brands perform the best, with an open rate of 25%, followed by not-for-profit on 21.8% and retailers on 19.3%. In terms of clicks, however, the utilities sector leads the way on 3.4%, followed by not-for-profit on 2.7% and travel on 2.4%.
Business-to-consumer emails are much more likely to be opened – with a 19.7% open rate compared to 15.1% for business-to-business (B2B). But, B2B has a higher engagement rate once opened, with a click-through rate of 3.2% compared to 2.1% for consumer emails.
However, there remains a disparity with consumers’ view of how many emails they open, with 57% of people believing they open at least every other email they receive.
4. Brands struggle to make progress with digital transformation
The majority of businesses are struggling to make their digital transformation journeys a success, with just 39% feeling like they have the right digital capabilities and 35% the right leadership capabilities in place.
The issues appears to be operations, with just 36% describing this as an area they excel in. Just 40% or organisations design their products digitally, while 35% are monitoring operations in real time. And just 29% modify their operational processes to quickly adapt to external challenges.
There are also issues with collaboration, with only 38% saying employees can work together digitally and a third (33%) agreeing that digital technologies improve communication between senior execs and employees.
Poor digital culture is stalling progress, with 64% of firms saying they do offer all staff the opportunity to take part in the conversation around digital initiatives, and just 38% saying they have a formal programme to reskill employees.
5. Digital ads drive in-store footfall
Digital ads can help to drive in-store footfall with mobile playing an increasingly important role in shopping habits. Some 29% of UK consumers have bought groceries on their mobile phone in the last three months, while 55% use to it to check prices and 30% to read product reviews when in store.
Given this data, OnDevice Research carried out a separate study on the impact of mobile digital ads. It showed that they result in a 14.2% uplift in in-store footfall following exposure to the campaign. There was also a 9.1% increase in unaided brand awareness and 1.9% increase in purchase intent.