Marketers believe that trade and brand marketing need to come together

The growth of ecommerce and the complimentary focus on catering to shoppers across multiple channels, is creating a demand to combine brand and trade budgets, according to a study by Criteo and Kantar Millward Brown.

53% of the survey’s respondents hoped to connect trade and brand budgets in the near future. The combination of the two typically includes retail display allowances for product positioning, temporary price reductions, end caps and shopper marketing.

“Trade marketing is undergoing a profound shift,” Jonathan Opdyke, president of brand solutions at Criteo.

“To profitably target and acquire shoppers, both online and offline, marketers must adapt their trade practices and budgets. This study confirms that retail marketers need solutions that allow for real-time measurement of ROI and an end to the debate between offline vs. online, in favour of an omnichannel approach.”

Key findings

Adrian McCallum, senior director at Kantar Millward Brown said:

“Especially in the consumer packaged goods and grocery sectors, we’re seeing a clear indication from marketers that the time is right for brand and trade marketing to align.

“This move, combined with more widespread integration of digital technology, helps connect marketing efforts more closely to the sale and creates greater shopping efficiencies.”

The study featured interviews with 100 executives. 50% of respondents rated online sales as disruptive or highly disruptive to their particular industry.

Some key common themes that emerged from the interviews are:

Trade marketing pain points  

59% of respondents felt that measurement and attribution were the main challenges that needed addressing with regards to trade advertising. 58% also highlighted trackability as a key issue.

Other highly ranked problems were reaching younger consumers (56%) and the complexity of the trade marketing processes (55%).

Confidence in paid search

62% of respondents expected paid search to be the most effective strategy open to them over the coming years. Conversely, 52% expected print-related strategies to have the greatest decrease in effectiveness.

The challenge of ecommerce

Ecommerce presents a number of distinct challenges to trade companies. Amazon price setting (29%), conflicts between brand and retail sites (28%) and complexity (27%) were all highlighted by respondents.  

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