Co-op has found that convenience retail media has provided an “immediate positive” sales impact in both its stores and surrounding grocery shops.
Research from the convenience retailer in partnership with Circana, revealed at MAD//Fest today, suggests a positive halo effect for brand’s overall awareness when advertising in Co-op shops, which can lead to longer term incremental sales uplifts of up to four times the amount of the immediate sales.
Using the site lists of the campaign activations, Circana built store catchment models based on store and purchase attributes, which were then used with the market research firm’s matching algorithm to build statistically significant test and control panels of Co-op and halo stores.
The analysis identified key brand sales metrics, such as percentage increase in sales value, incremental sales and return on ad spend.
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Co-op head of media network Dean Harris said: “The results from our research with Circana is clear, when brands activate campaigns with Co-op there is an immediate positive sales impact in our store but also within the surrounding area with retailers that we would typically class as our competitors.
“As a retail media owner, our main goal for the brands that advertise with us is to generate sales regardless of where that customer purchases the product.”
One of the retail media campaigns reviewed in the study of a global beer brand generated a brand sales uplift of 12% in Co-op stores, while Circana identified that it drove a further 3% uplift in non-Co-op halo stores.
Harris added: “The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Coop stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.
“This halo effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”
