The way parents and students approach back-to-school spending is changing. Many of the trusted rules that retailers apply to the back-to-school buying cycle are quickly going sideways due to the state of the economy combined with layaway, longer discount cycles and major couponing sites. Even the National Retail Federation (NRF) forecast for back-to-school spending per child has decreased to $603 in 2011, compared to $606 on average in 2010.
In this marketing landscape, retailers must create a sense of urgency and value. Here are three key ways to tackle this challenge:
Change the Marketing Mix
Retailers have proven to be innovative marketers in a variety of mediums including traditional TV efforts and online ad programs. Making online a bigger part of the marketing strategy is critical. It’s where parents (particularly moms) control household budgets, live and shop. In fact, a recent study of American moms from About.com indicates that online ads drive buying behavior among moms and nearly 40 percent who interact with these ads purchase the related products. Emerging e-commerce opportunities make online an even more compelling channel for retail marketers to reach targeted audiences. BIGResearch and Shop.org reported that online buyers are expected to spend 40 percent more than offline buyers this year. Retailers can win by focusing their ad dollars where the buying power is — online.
Matching Capabilities with Consumers Demands
Shoppers expect engaging ad experiences. Static, low-fi banners are outdated and won’t tempt today’s savvy consumers. Instead, retailers can use online video within traditional display banners to deliver all the things back-to-school shoppers are looking for, from coupons and discounts to product information. Using a primary TV ad as the base of an online in-banner video ad, retailers can include secondary videos about products. Now consumers can access the information and content they need, without being directed to another site.
Establishing local relevance is also part of this new equation. Retailers can use geotargeting to provide directions to get shoppers in the store with less hassle. This will help to increase brand favorability instead of frustrating a mom by sending her across town to a store location, when one was within miles of her home. Traditionally, this kind of dynamic geotargeting has been difficult and time consuming, but now any retailer can add this to an online campaign.
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