No doubt that at this point, you know a good shopper marketing strategy can help build new revenue for retailers and brands  both, but you may not know what it is that makes a strategy good in the first place.

Yes it’s about having your product at the point-of-purchase, being there during the research phase, and optimizing your shelf space. But the word ‘strategy’ is about integrating all of it into one comprehensive plan that engages all along the path to purchase.

Recently, eMarketer released a new report titled “Marketing to Shoppers at Every Touch point”, which does a great job of outlining how a successful shopper marketing strategy targets consumers at every step along the way through 3 phases of shopping: pre-shop, in-store, and post-shop.

Here at DiJiPOP though, we’ve taken those phases a step further by putting our own spin on it in order to apply it to the complete multi-channel marketing approach that internet retailers should be embracing. In the figure above, see how we’ve adapted what’s traditionally been drawn as a funnel into what is actually a more circular experience.

Shoppers start with a need, and they head online to begin their product research in either search, on a retail site, or with a mobile device. Based on what they’re able to find, the “in-market” shopper makes their decision and takes on a commitment to that brand. In the event that the Shopper/Brand partnership proves unsatisfactory, the shopper ends up disappointed and begins the cycle again.

As marketers, we’ve been most familiar with marketing during the pre-shop experience. These ads and product placements and jingles that get stuck in your head are meant to drive your consumers to purchase. And then we’ve lately started to become more familiar with the post-shop marketing tactics of joining social media groups to support a product, encouraging consumers to let their brands become an everyday part of their lives, ultimately creating a culture that cultivates loyal shoppers for life (i.e. Apple).

So while many marketers hold tight to these pre-shop marketing principles, and more and more come to terms with a post-shop strategy, strategies towards the “in-market” shopper still go neglected. Fortunately though, with the emergence of more and more digital and mobile capabilities, t’s never been easier to make targeting the in-market shopper  the keystone of a good shopper marketing strategy.

So for retailers, the question becomes; have you taken advantage of the shopper marketing opportunities out there? Or are you still counting on the pre-shop and the post-shop marketing strategies to carry you through? With an effective shopper marketing programyou can fill that gap now, and stay with the shopper all along the path to purchase.

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I was never a mall rat. Not because I didn’t want to grow a mullet, wear a tight fitting leather jacket, and hang around a food court on Saturday nights. I would’ve loved to do that. But my friends and I suffered from the same blindness that many guys my age suffered from; we didn’t see shopping as a social activity.

We’d wear our clothes until they basically disintegrated, and then dash into the mall, pick up some new ones (preferably new ones made to look old) and repeat the cycle. It was strange to think of the act of buying pants as an opportunity to socialize.

The real innovation of the emergence of social shopping sites, or stores within social networks, is that rather than asking the consumer to bring their social life to the mall, retailers are bringing the mall to your social life. And why wouldn’t they? Check out this graph from eMarketer that shows the steady jump of adult social networkers every year:

Still in the early stages, it’s hard to say how effective it is for companies like JC Penney and Cabela’s opening these store fronts on Facebook. Because in a large way it’s a gamble on the emergence of the digital mall rat, and even then you’ve got to keep in mind what it is that separates the mall rat from the serious shopper: mall rats don’t spend any money.

Will the serious shopper, the ones with the money to spend and intent to buy, ever view social commerce as a serious alternative to the in-store experience? Or the retailer’s main ecommerce site? The healthy approach for many brands andretailers would be to understand the importance of having a presence on social networking sites, and to resist the temptation to listen to the social networking gurus heralding the dawning of social shopping and the digital mall rat.

Time and time again it’s been proven, the most effective place to engage the consumer is along the path-to-purchase, when they are looking to buy.

What do you think? Let us know in the comments below.

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Usually when talking to retailers about bringing their shopper marketing programs into their online stores, those retailers who’ve already established co-op marketing relationships with their brands catch on immediately.  Those retailers who haven’t yet established these co-op marketing relationships with their brands on the other hand usually ask the same question: “But why would my vendors want to pay for this shelf space?”

There was a great article by Sean Lowon Design Taxi recently about the difference between a partner and being a vendor. Now while Sean was referring to the relationship between creative businesses the point behind the article could be applied to any relationship between businesses. A vendor merely provides services (or products) to a client (retailer) and hopes that things work out. A partner, in comparison, works towards their business (or product) becoming one component of the overall relationship with the client (retailer).

Which means it’s one thing for brands to give retailers some products and hope they sell them, but it’s another thing entirely when they take the initiative to engage in these co-op programs that make their product part of the consumer’s overall retail experience. So it’s no wonder that PMA recently reported that more than 60% of retailers are more likely to support shopper marketing programs than standard initiatives. And 68% of brands participating in these co-op marketing programs report substantial sales increases almost immediately.

It’s time for brands and retailers to step back and ask themselves if they’re working together as partners to achieve the sales growth they’re looking for. And if they aren’t, then why not?

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At this point, shopper marketing’s become so common that most shoppers don’t even realize that they’re being marketed to in the store. They think, ‘oh, isn’t that nice? They put the cereal right here on this end cap so I’d see it. How thoughtful of them. I guess I’ll just take whatever’s here..”

And they’re not alone, because many brands & retailers have begun to take it for granted as well. Recently though, we’ve seen new light thrown on shopper marketing practices, with advertisers finally becoming frustrated and looking to go back to what works best; marketing to the shopper at the point-of-purchase.

There was a great article recently in Wall Street Journal titled “In-Store Sales Begin at Home” which so perfectly called to attention how a number of factors including the prevalence of digital advertising, economic recessions, and consumer research has led to what can only be described as the perfect storm for shopper marketing as a practice. And brands are pushing each other over in the race to be first in front of the consumer at every step along the path to purchase.

Here’s what the WSJ found:

But as consumers are starting to open their wallets, companies are more focused than ever on attracting them during their shopping trips: Post-recession, 83% of consumer-product companies say they plan to increase their investments in shopper marketing over the next three years, while 55% say shopper marketing is their top investment, with spending increases topping 5% annually, according to the Booz & Co. survey.

And so shopper marketing soldiers on, stronger than ever, as the little marketing practice that could. Let’s hope that this generation of marketers doesn’t let it slide away for a time like the previous one had.

What do you think? Is shopper marketing making a comeback for good in 2011? Or is this just another phase?

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There are few things being talked about in the digital advertising circles more than mobile advertising. Why’s that? Well for many marketers, it’s because mobile advertising has brought about a brand new ability to reach consumers while in store. No joke, according to a recent study, over half of smart phone users look to their phones while shopping.

Here’s the breakdown on the most popular activities those smart phone shoppers are doing on their while they’re in your aisles:

• 66%of the time they’re comparison shopping
• 58% finding store locations and/or checking for available discounts
• 49% reading reviews
• 46% reading about a rival’s product of service

It doesn’t take a genius to understand why advertisers are expected to spend $1.1 Billion on mobile ads this year. The idea of consumers walking up and down your aisles with their smart phones out comparison shopper is enough to make any retailer cringe. Is somebody else reaching your customers at the point of purchase? Isn’t it time retailers took control of all their shelf space? Whether mobile, online, or in-store, the time for retailers to monetize the browsers is now.

Or you could just buy iAds for a few million dollars and hope that curious consumers will browse through it on their own…

What do you think? Is mobile advertising changing the way we shop? Or is it just another fad? Let us know in the comments below.

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A few months ago we released a brand new white paper for internet retailers and their advertising partners. “Ecommerce Meets Monetization: Understanding the Publishing Role and its Financial Impact” has quickly become required reading for many professionals in the ecommerce arena.

In case you haven’t downloaded it yet, here’s a quick sample on how some internet retailers are monetizing their sites without compromising the customer experience:

For many online retailers, “advertising” representsthe antithesis of what every online retailer lives andbreathes. “Why should I promote a way for the visitorI worked so hard to get, to click away from my site?”And frankly, they are right. The quickest way to hurtconversion rates and ruin the customer experiencefor shoppers is to distract them from the reason theycame to the site in the first place– to BUY. Not to bepart of an impression count.

But online retailers can monetize their digital shelfspace without sacrificing the experience they’veworked so hard to cultivate for their shoppers. There are two options: One is to run non-competitivebanners targeting that “just looking” visitor. Successful executions can include only serving to theinitial visit, serving only on sub-pages of the website,or inclusive in weekly email campaigns. These non-compete ads can also be selected in a way thatcompliments the retailer’s brand so the experiencefeels cohesive, yet monetizes the impressions or page views.

The second option is to implement apaid merchandising or shopper marketing strategy that compliments conversion strategies. This not only keeps visitors within the walls of the online store, but recaptures those co-op marketing andtrade promotion dollars.

To learn more about ecommerce monetization and the emergence of retail media, be sure to download the complete whitepaper today.

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Media Daily News recently published an article about a new study by the folks at L2 that does a nice job of laying out where the affluent Gen Y’ers (here defined as 12-29 year olds who anticipate making more than $80k soon) are most likely to see your advertisements. And while the numbers aren’t especially surprising (81% use Facebook every day, 45% check newspaper content, 44% watch T.V. daily) I couldn’t help but think about how these numbers are only indications where to put your products if you want them to be seen. That’s right, seen. Not bought. Not purchased. So unless you’re Nike or Coca-Cola (and most of us aren’t) and can afford to spend millions of dollars every year to become a cultural staple, you’re probably more interested in selling your products then merely being seen.

I hate to beat a dead horse, or any dead animal for that matter, but the reality is that your advertising dollars are most effectively spent at the point-of-purchase. Look at these stats:

• 84% of online shoppers never click on banner ads.
• 62% of all shoppers search for deals digitally before heading into a store.
• Of those, 1/5 start their search at a retail site.
• Of the 18% who start at a search engine, 37% make a retailer website their next stop.
• 94% of online shoppers click 1-10 products on the first results page.
• 70% of all purchase decisions are made in-store.

Impressive, right? I like to remind brand marketers of these statistics from time to time, because it validates what they already know.

• You know that consumers almost never click on a banner ad.
• You know they almost never make a major purchase without first researching the product online.
• You know they like to start pricing at a retail site.
• You know that they search for the product they want, and then sort based on those results.
• You know that shoppers usually make the decision on whether or not they’re going to buy something while looking right at it.

Statistics are nice, but it’s scary to think that some marketers will read the results of the L2 survey and they’re first response will be to throw more money and bigger ads up on Facebook.

Keep it effective, and spend those dollars where they’re going to be most effective; at the point-of-purchase.

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Survey Shows Mobile Drives More Customers on Path to Purchase

• 56% of consumers with smartphones who purchased merchandise based on mobile messaging say reading a marketing e-mail on their mobile device led to at least one purchase, the survey says
• 43% of smartphone owners who heard about products via mobile messages and made at least one purchase did so on a retailer’s e-commerce site using a desktop PC, the survey finds. 35% say they purchased a product in a store, 34% via an e-commerce or m-commerce site on their smartphone, 31% through a mobile app, and 18% through a retailer’s telephone contact center.
• via Internet Retailer

Netflix Splits Streamng & DVD by Mail Plans, Chaos Ensues

• The company is separating the two options so that subscribers who want both will have to buy separate plans totaling at least $16 per month. Netflix Inc. had been bundling both options in a single package, available for as low as $10 per month.
• Netflix’s willingness to risk alienating subscribers signals that it needs to bring in more money to cover its rising costs.
• via Washington Post

Google’s Earnings Rise 36%, Well Past Estimates

• Google  said its second-quarter net income rose to $2.51 billion, or $7.68 a share, from $1.84 billion, or $5.71 a share, in the same period last year.
• Google said that its paid clicks, or the number of times that Internet users click on the company’s advertising and generate revenue, rose roughly 18% compared to the same period last year
• Prices paid for Google’s online advertising, or “cost per click,” rose about 12% in the quarter.
• via Market Watch

Online Video Sessions in U.S. Pass 6 Billion

• comScore is releasing more data that supports the growth in online video in the U.S. The research and analytics firm reports that in June, the U.S. Internet audience engaged in more than 6.2 billion viewing sessions during the course of the month, compared to 5.6 billion viewing sessions in May.
• Video ads continue to populate online video streams, with americans viewing nearly 5.3 billion video ads in June, compared to 4.6 billion video ads in May. Video ads accounted for 13.6 percent of all videos viewed and 1.3 percent of all minutes spent viewing video online.
• via Tech Crunch

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