X5 and POPAI: In-Store Ad Performance Tool

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• Big Data
• Defining Business Intelligence

2021: Launch In-Store Ad Performance Analysis Tool

On February 26, 2021, it became known that X5 Retail Group, a multi-format retail company in Russia that manages the Pyaterochka, Perekrestok and Karusel retail chains, and the Marketing in Retail Association POPAI launched a joint tool to analyze the effectiveness of advertising in stores. The analytics module enables big data providers and agencies to make business decisions when they launch promotional activities. The solution is implemented on the basis of the multifunctional platform Dialog.X5.

Launch the In-Store Ad Performance Analysis Tool. Photo: proreklamu.com.

As reported, on the platform, partners already have an exhaustive categorical and purchasing analytics: category trends, analysis of purchasing behavior, assessment of the results of decisions made. With this module, customers access large data to measure the real impact of POSM on sales, which will allow them to more accurately evaluate ROI and approach the issue of creative advertising materials systemically, based on analytical conclusions from actual data.

The effectiveness of advertising activities in stores has been of concern to both customers and project performers for many years. There are only a few small studies conducted on this topic in the world. noted Dmitry Prusov, Director of Big Data Sales at X5 Retail Group

We are pleased that X5 Retail Group has drawn attention to this issue, as a result of which our partners will receive marketing planning tools that will allow us to create business cases in 2021 with proper efficiency. Our collaboration will help launch a series of market research. stated Anna Lebedeva, Executive Director, POPAI Association

The analysis of the effectiveness of advertising activations allows suppliers and agencies to correctly evaluate the actual result using A/B testing, conduct LFL analysis of metrics of control and pilot stores, identify the sources and volume of switches and cannibalization, and determine the effectiveness of typical marketing activations.

To conduct A/B testing and evaluate the test results, the most similar stores in the test and control group are selected based on the revenue, traffic and costs for the customer in the store as a whole and in the test category.

For example, the partner made an additional placement of POSM with products in a limited selection of network stores and plans to evaluate its effectiveness based on big data analysis. With the help of this solution, he will be able to evaluate the contribution of metrics to the dynamics of product sales in the test group of stores, to analyze the base of customers who took part in activation in the context of new, permanent and departed. Also based on the data, the main sources of changes in sales and switches are determined, which allows you to evaluate the incremental effect of the event for the category and/or brand.

As part of the X5 partnership and the POPAI Association, the companies plan to develop analytical tools to optimize the effectiveness of advertising placements and activations.