At last week’s Shoptalk conference in Las Vegas, speakers discussed the future of retail, evolving consumer preferences, and emerging channels for shopper engagement.
With 80 sessions, 275 speakers, and 50+ hours of content, it can be difficult for marketers to wrap their heads around the most important learnings. But never fear. Roku’s team was on the ground watching sessions, chatting with attendees, taking interviews, and meeting with clients.
Here are our top three takeaways from Shoptalk 2023:
Before the pandemic, shopping was all about the experience. Retailers took painstaking steps to draw consumers in and present products in a compelling way to drive discoverability and sales. While that’s still critical, the pandemic swung the pendulum towards convenience with mobile ordering and effortless order pickups gaining momentum.
Today the lines are blurring. People expect online shopping to become more experiential and in-store shopping to become more digitized. Ulta Beauty is a good example. CEO Dave Kimbell explained at Shoptalk that the company allows online shoppers to virtually try on makeup while also bringing digital touchpoints in-store.
Target EVP and CFO Michael Fiddelke said that store traffic — its ultimate metric for success — is built upon both online and in-store engagement. So Target is deepening consumer relationships across channels by investing in order pick-ups, loyalty programs, and same-day delivery.
Where does TV fit in? Sarah Monahan, head of industry, retail ad sales at Roku, explained that shoppable TV ads will join the mix. Roku has already introduced offerings like shoppable ads with Walmart and interactive ads for restaurants and grocers through a partnership with DoorDash.
The bottom line for marketers: Prioritize fluidity across digital and in-store channels. Make the advertising experience more engaging across all touchpoints and enable commerce anywhere consumers can shop.
Despite inflation and talk of economic uncertainty, there was an underlying sense of optimism at Shoptalk. Whatever comes next, Shoptalk speakers stressed the importance of putting brands at the center of the cultural conversation.
Morgan Flatley, McDonald’s global CMO & head of new business ventures, explained that partnering with celebrities that champion the brand has provided a significant boost, and similar actions could help brands stay resilient during tough times. Levi Strauss & Co. President & CEO Chip Bergh explained that he prioritized putting the brand at the center of culture over his tenure by aligning with sports, food, and entertainment.
Those messages are in line with the thinking of Andrew McKeever, head of industry, CPG food & beverage ad sales at Roku.
The bottom line for marketers: Continue to find innovative ways for your brand to be integrated into culture and conversation; TV is the place to start.
Marketers agree that personalization is critical. Anticipating consumer needs helps deliver relevant messaging and offers. But getting there is no easy task.
Petco has a strong program in place. SVP Omnichannel Experience Jenny Wolski explained at Shoptalk that customer data drives custom alerts for pet needs. Wolski recommends using first-party data to unlock opportunities that make loyalty programs more personalized, interactive, and delightful. Another example is Lowe’s. SVP and Head of Marketing Jennifer Wilson explained that they use existing data signals to increase basket size and frequency of store visits among existing customers. If a customer buys paint samples, Lowe’s may give them a special offer to buy paint in the next 30 days.
All eyes are on emerging channels like generative AI and retail media — which could allow for personalization at scale. One potential use of AI is the relatively effortless creation of marketing copy and creatives that speak to individual consumers. Retail media, meanwhile, has far more defined use cases as companies productize their data for others to reach differentiated audiences and optimize media spend.
Popular grocery chain Kroger, for example, partnered with Roku to give TV streaming advertisers the ability to build audiences based on customer purchase data. This helped Neutrogena deliver ads to category buyers, current brand buyers, and others — leading to an 8% uplift in household penetration and a 5.5% uplift in sales.
Best Buy is also in the retail media mix. It partnered with Roku to share Best Buy shopping habits that help brands deliver more compelling ads on Roku. Jason Bonfig, chief merchandising officer at Best Buy, explained at Shoptalk that the collaboration with Roku makes ads more relevant.
The bottom line for marketers: Explore emerging media and changing retail relationships to make your advertising efforts more personalized and more likely to drive results.
Missed us at Shoptalk and want to learn more? Contact us to set up a strategy meeting for your brand.