Co-op has found that its convenience retail media has produced an “immediate positive” sales impact across both its stores and surrounding grocery shops.
Research from the supermarket in partnership with Circana, which was unveiled at MAD//Fest today, indicated a positive halo effect for brands’ overall awareness when advertising in Co-op stores. This 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, the market research company built store catchment models based around store and purchase attributes.
These were then used along with Circana’s matching algorithm to set up statistically significant test and control panels of Co-op and halo stores.
The findings revealed key brand sales metrics, including percentage rise 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 of a global beer brand which was studied in the research generated a brand sales rise of 12% across Co-op stores, while Circana found that it drove an additional 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.”
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