DIGITAL, WIDE-REACHING AND MEASURABLE: THREE REASONS WHY RETAILERS SHOULD ADAPT THEIR OFFER COMMUNICATIONS
Berlin, 17 March 2022 – Digital offer communication is about to take the next quantum leap. More and more retail companies are currently looking for promising alternatives to traditional brochures. The reasons for this are the increased paper prices, the introduction of the minimum wage and the decline in newspaper circulation. Offerista Group, the expert for digital offer communication, deals with the effects and shows solutions.
1. the price of paper has risen massively
Retailers are suffering from a massive price explosion. Not only for energy and food, but also for paper – the most important raw material for promotional flyers. From January to September 2021, the cost went up by more than 70 per cent. This is reported by Fastmarkets Foex, a company that creates indices for the paper market. The reason: shortage of raw materials and scarce production capacities. In view of these developments, the market for household advertising is coming under increasing pressure, because the production of printed brochures and offer inserts has thus become significantly more expensive. Digital brochure portals bundle the brochures of various retailers on their websites or in their apps and reach the target group without any paper at all. They are a first step towards digital offer communication and a useful supplement to printed advertising material. But they alone are not enough to reach consumers all over Germany. The customer journey is becoming increasingly complex. Customers inform themselves about offers in different ways – online and digitally. It is therefore necessary for retailers to use as many relevant apps and portals as possible. – Also digitally.
2. Raising the minimum wage makes distribution more expensive
Another factor that makes the distribution of flyers & co. more expensive is the increase in the statutory minimum wage. It is to rise to twelve euros this year. This has been decided by the federal government. Currently it is still 9.83 euros per hour. What is good for the employees in the minimum wage sector, however, also causes the costs for the distribution of direct mail & co. to skyrocket. An alternative is the distribution of advertising material via digital channels. This is not only easier and cheaper for traders, but also possible in real time. For example, retailers can inform customers about changes in opening hours at short notice.
3. declining circulation of printed dailies also means fewer options for inserts
The total paid circulation of daily newspapers in Germany has been declining for years and has more than halved since 1991, according to Statista. The trend is still downwards. This also has an impact on the market for household advertising, which also depends on printed newspapers. If there is less print, there are also fewer opportunities to insert brochures and fewer consumers are reached. At the same time, digital use is increasing more and more. In Germany, almost 67 million people will use the internet in 2021 – 100 per cent of the under-50s, 95 per cent of the 50-69 age group and 77 per cent of the over-70s, as the current ARD/ZDF Online Study shows. Consumers can therefore be successfully reached through digital communication of offers. Through a variety of measures such as engagement ads, placements on social media platforms, app push messages and much more, retailers can usefully supplement the digital brochure. Digital offer communication also offers users more opportunities for interaction, for example through the integration of moving image content. This is an advantage that also brings added value to the users through its entertaining character.
“The aforementioned developments present retailers with the challenge of rethinking conventional marketing measures. Printed media alone are no longer sufficient. All this has prompted many retail companies to shift their advertising pressure into the digital space and use alternatives. For retailers, this means that many different channels have to be used and played with. Digital marketing has become an important pillar for offer communication, which expediently expands the measures in the print area. To achieve an efficient advertising effect, retailers should book as many relevant apps and portals as possible in a coordinated manner, because the customer journey is becoming increasingly complex. Through our Native Network, we reach a large number of consumers at the right time and in the right place and can implement cross-channel campaigns for our customers,” says Stefan Bien, Chief Revenue Officer of Offerista Group.
About Offerista Group
As a shopper marketing network, Offerista Group GmbH offers tailored digital solutions for the location-based marketing of offers and branches. Offerista implements cross-channel campaigns to ensure that advertising messages are transported across a wide range of user-relevant channels. We make consumers so curious about products that they go to the shops and buy them. With a team of more than 120 employees throughout Europe, Offerista provides cross-channel support for retailer and manufacturer brands across all industries at every point in the customer journey. In addition to its headquarters in Dresden, it has further sites in Berlin, Essen, Vienna, Sofia, Budapest and Bucharest. The managing directors are Tobias Bräuer and Benjamin Thym.
Offerista is one of the three initiators of the “Initiative Digitale Handelskommunikation” (IDH for short), which was launched in 2021. The goal of the Initiative is to raise public awareness on the topic of digital trade communication as a future-oriented branch of industry.
Press contact of the Offerista Group
Agency Frau Wenk +++ GmbH
Tel.: +49 (0) 40 32904738-0