Macy’s and J.C. Penney top RSR report on digital advertising

Morrisville, N.C. -- Macy’s and  J.C. Penney Co. rank as the nation’s top “local” advertisers, according to a new report from RSR Research. The study, “The Local Approach: The State of Localized Advertising in Retail,” finds most major retailers are missing huge opportunities to drive store traffic through localized digital advertising campaigns.

For the report, sponsored by MaxPoint Interactive, RSR evaluated how well retailers are using digital experiences to drive traffic to their stores. RSR divided the criteria into four categories: traditional advertising, digital advertising, alternative offers and on-site communication, putting emphasis on channels that are primarily used for communicating offers.

Based on the evaluation criteria, the retailers with the highest overall scores (out of a total of 45 points) and therefore the top “local” advertisers are:

  1. Macy’s (31.5 points)
  2. J.C. Penney (31 points)
  3. Sports Authority (30.5 points)
  4. Best Buy (30 points)
  5. Kohl’s (26.5 points)

“While these five retailers provide inspiration for how local campaigns can be executed, we found that, as a whole, retailers have not implemented localization as a major part of their advertising strategy, particularly as it relates to driving in-store traffic,” said Nikki Baird, RSR Research managing partner and co-author of the report. “True cross-channel localization efforts – both in the targeting and the execution – continue to lag and there is still much to be done in this particular area of retail.”

RSR evaluated retailers in four distinct markets – department/clothing stores, electronics, sporting goods and casual dining restaurants. The firm found that retailers and restaurants across all categories, particularly casual dining chains, were missing an enormous opportunity to drive in-store traffic, specifically in the areas of display and video advertising.

“Retailers tend to rely heavily on digital marketing efforts to drive e-commerce sales, but it’s equally, if not more important to drive people into stores. It’s our belief that all marketing efforts should work together to help customers navigate all of the touch points along the path to purchase,” said Gretchen Joyce, president of MaxPoint Interactive. “As the critical holiday season approaches, retailers should look for opportunities to use local targeting to drive traffic into their stores and restaurants.”

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