Dive Brief:
- Nestle is one of the first brands to partner with Dunnhumby to leverage a new media service from the customer data science firm, enabling the CPG to promote an on-pack deal for Tesco customers on owned and paid channels, including in-store, mobile, online and out-of-home, according to a press release.
- Dunnhumby Media created an “insight-driven, multi-channel media plan” that reached 5.8 million customers and led to an 11% sales increase. Stores with point-of-sale and JCDecaux's digital screens generated 33% sales increases compared to the 15% for stores with only point-of-sale screens.
- Dunnhumby Media uses retailer data assets to engage consumers with personalized messages along the full customer journey and aims to help advertisers boost customer loyalty and retailers monetize owned media to measure sales growth.
Dive Insight:
Nestle’s success with Dunnhumby Media shows how combining retailers' transactional data with multi-channel media can boost brand loyalty and drive sales. Marketers continue to bet on data to deepen connections with consumers through personalized messages and merging in-store and online experiences. At the same time, marketers are wary of some data in the wake of a number of alarming breaches, including Facebook's Cambridge Analytica scandal, and the increased scrutiny from regulators, privacy advocates and others on how companies are using personal data. In this environment, Dunnhumby, which has close relationships with a number of retailers through its data-driven marketing services, appears to see an opportunity to extend its data knowhow into media services.
As marketers focus more of their efforts on meeting consumers’ growing expectations for personalization, more are investing in third-party data. In 2018, U.S. companies were expected to spend nearly $19.2 billion on third-party audience data and solutions, a 17.5% increase over last year, according to IAB research. Marketers for the first time last year were on track to invest more in digital data assets than in traditional “terrestrial” data.”
Nestle’s partnership with Dunnhumby comes as the CPG has been reviewing its creative and digital business in an effort to consolidate its North American advertising business from eight to four to six agencies, after reducing its agency partners from 20 to eight in 2014.
The new Dunnhumby Media solution could help brands and retailers drive customer engagement across retailer-owned and paid media channels to increase the value of owned media by boosting incremental profits of 30% to 40% through in-store media and direct media, according to the news release. The solution could also increase return on media investments and improve customer engagement and build loyalty.