On the occasion of Cannes Lions International Festival of Creativity,
S4M, the Drive-to-Store specialist, today announced they have
commissioned an independent drive-to-store advertising research study
from IHS Markit (Nasdaq: INFO), a world leader in critical information,
analytics and solutions with over 15 years of advertising-sector
While many studies by media, format or method of purchase already exist, The
State of Drive-to-Store Advertising 2019 is the first research study
that assesses the size of the advertising market across all types of
media from a drive-to-store campaign perspective. The study surveys 400
advertisers from all retail sectors in support of the market data and
forecasts generated by IHS Markit.
Some key figures:
In 2019, drive-to-store will represent €55Bn. for retailers, 58% of
the industry’s total advertising budget globally.
In the United States, 2019 saw the same percentage attributed to
drive-to-store, reaching €19Bn.
Automotive is the leading sector in drive-to-store investments with
€15Bn. spent in 2018.
In the United States, the automotive industry also takes the lead,
ahead of the grocery industry with €6Bn. and €4Bn. respectively in
2018 and €7Bn. and €6Bn. forecast for 2023.
In 2023, mobile will become the major format for drive-to-store
investment, growing from 19% in 2018 to 26% in 2023 globally. In the
US, this growth will reach 28% in 2023, up from 22% in 2018.
The advertising impact, particularly on sales and the number of
in-store visits, is the first factor that pushes retailers to invest
Conversely, advertisers who do not measure the impact of their
drive-to-store campaigns name their unfamiliarity with the measurement
tools available on the market as the main reason for it.
Finding 1: Drive-to-store growth is led by
Generating in-store traffic has always been one of retail’s main goals,
and advertisers are dedicating an increasingly greater part of their
advertising strategy to it. Indeed, drive-to-store continues to grow,
with worldwide forecasts showing that it will amount to 65% of
retailers’ total advertising investments in 2023, as opposed to 54% in
2018. This growth is strongly led by the digital-to-store, the leading
media used by retailers to increase the number of in-store visits. As a
matter of fact, in 2023, digital will represent 68% of worldwide
drive-to-store spend as opposed to 54% in 2018.
Finding 2: Advertisers are increasingly looking
for activations that can be measured and optimized in real time
The rise of digital-to-store can be explained by a growing demand for
effective and measurable solutions. These new innovative solutions are a
result of the staggering growth in mobile use and its technical
specificities, especially when it comes to geolocation data, which
enables brands to bridge the gap between the online and offline world.
This is why the drive-to-store media mix will evolve tremendously in the
coming years, led by mobile and social media, which are considered the
two highest performing media channels to generate traffic in points of
sales by the advertisers surveyed. Incidentally, by 2023, mobile will
become American retailers’ favorite channel, with the study forecasting
that they will allocate 28% of their drive-to-store advertising
spend to it. In comparison, the study forecasts that retailers will
spend only 4% of their drive-to-store budget on out-of-home as well as
on leaflets, and only 3% on desktop. Despite these figures, retailers
will continue to use traditional media in their media mix to attract
consumers to stores. They will, however, turn more heavily to digital
solutions like on-demand TV, programmatic audio, and digital out-of-home.
Finding 3: Retailers want to measure the
concrete impact of their drive-to-store strategy in stores, giving up
more traditional media KPIs
The study shows that advertisers who set up a drive-to-store strategy
are mainly looking for ways to measure the concrete impact generated in
their points of sale. This way, the number of visits, particularly
incremental visits, and sales in stores are the first key performance
indicators (KPIs) mentioned by advertisers as a way to measure the
impact of their drive-to-store strategy. Traditional media KPIs such as
reach, click-through rate and repetition rank last.
Finding 4: Some sectors are more inclined to
In the United States, drive-to-store advertising is already well
established, and its growth will outpace the wider market to reach
around 64% of all retail spend by 2023. The automotive business will
maintain its dominance in the drive-to-store market with €7Bn. forecast
for 2023, or 52% of their total advertising budget. With that being
said, this industry is not the only one which is investing massively in
drive-to-store. The grocery and restaurant sectors are the next largest
categories with €6Bn. and €5Bn. invested respectively.
Moreover, digital media will dominate the U.S. retail landscape across
all categories and will account for almost 70% by 2023. Mobile will
maintain its lead in the drive-to-store market with a 28% share by 2023
and social media will grow from 9% in 2018 to 21% by 2023.
To read the entire study, click here : The
State of Drive-to-Store Advertising 2019
S4M is the first and only advertising technology that connects brands to
consumers by bridging the gap between digital advertising and the
real-world. S4M created a unified technology for marketers to manage,
measure, and optimize incremental visits in real-time to online and
physical stores. S4M is committed to transparency and full autonomy for
its clients from online impressions until conversions and relies on data
obtained only with the user’s explicit consent.
Founded in Paris in 2011 by mobile marketing pioneers, S4M has more than
180 employees worldwide (USA, Europe and Asia Pacific) and services more
than 600 advertisers worldwide. The company has ten offices in the US,
Europe, Asia Pacific, and Latin America. Discover more: www.s4m.io