By 2023, drive-to-store retailer investments are expected to reach 2.3 billion euros in France, according to S4M estimates in its study "The State of Drive-to-Store Advertising 2019", conducted by IHS Markit
According to S4M's forecast in IHS Markit's "The State of Drive-to-Store Advertising 2019" study, retailers' share of retail-to-retail investment in retailers will rise to 55 billion euros this year 2019. Representing 58% of the sector's total advertising expenditure. In France, the same percentage should be observed, reaching then 2.3 billion euros. By 2023, global drive-to-store investments are expected to grow 36% to 75 billion euros, or 65% of advertising spend. This growth should be driven by the digital-to-store: according to forecasts by S4M, digital will represent 68% of global drive-to-store expenses, compared to 54% in 2018. In France, it should represent 31% of advertising expenses in 2023. Mobile and social networks are indeed considered the two best-performing media to generate point-of-sale traffic according to the respondents.
The advertising impact is the main reason why retailers invest in drive-to-store. The number of visits, including incremental visits, and in-store sales are the first KPIs mentioned by respondents to measure the advertising impact. On the contrary, the lack of knowledge of the measurement solutions available on the market is the first reason cited by respondents who admit not to measure the impact of their campaigns.
The sector that generating the largest volume of drive-to-store investments worldwide is auto, with 15 billion expenditures in 2018 and 21 billion in 2023. In France, distribution generates the largest volume of drive-to-store investments: € 783 million planned for 2023, representing 83% of their total advertising budget. Other sectors should invest heavily in drive-to-store, like catering (95% of its budget dedicated to the generation of in-store traffic would be in drive-to-store in 2023), or fashion ( 71% of advertising investments will be allocated to the drive-to-store in 2023).
Article taken from emarketing.fr, written by Salomé Kourdouli