Macy’s, J.C. Penney and Sports Authority Top RSR Research’s
Local Advertising Benchmark Report
Report Finds Most Major Retailers are Missing Huge Opportunities
to Drive Store Traffic through Localized Digital Advertising Campaigns
Morrisville, N.C. – September 27, 2011 – Today, RSR Research revealed the results of a new
Prospective View report entitled, “The Local Approach: The State of Localized Advertising in Retail.”
While retailers struggle to create relevant “local” experiences in digital channels, they are also
challenged to maintain their stores’ relevancy – that is, they must rethink the store’s role in a shopping
process that increasingly relies on digital experiences. For this report, sponsored by MaxPoint
Interactive, RSR evaluated how well retailers are using digital experiences to drive traffic to their
stores.
RSR divided the criteria into four categories: traditional advertising, digital advertising, alternative
offers and on-site communication, putting emphasis on channels that are primarily used for
communicating offers.
Based on the evaluation criteria, the retailers with the highest overall scores (out of a total of 45 points)
and therefore the top “local” advertisers are:
1. Macy’s (31.5 points)
2. J.C. Penney (31 points)
3. Sports Authority (30.5 points)
4. Best Buy (30 points)
5. Kohl’s (26.5 points)
Of the five, J.C. Penney, Sports Authority and Kohl’s have taken a primary strategy of ensuring at least
mass coverage across all channels, with certain localization elements in only a few advertising
channels. Macy’s and Best Buy, while achieving a certain amount of coverage across all channels,
follow more of a strategy of localization – but with a focus on key channels.
“While these five retailers provide inspiration for how local campaigns can be executed, we found that,
as a whole, retailers have not implemented localization as a major part of their advertising strategy,
particularly as it relates to driving in-store traffic,” commented Nikki Baird, RSR Research managing
partner and co-author of the report. “True cross-channel localization efforts – both in the targeting and
the execution – continue to lag and there is still much to be done in this particular area of retail.”
Display and Video Advertising: Missed Opportunities for Retailers and Restaurants
RSR evaluated retailers in four distinct markets – department/clothing stores, electronics, sporting
goods and casual dining restaurants. The firm found that retailers and restaurants across all categories,
particularly casual dining chains, were missing an enormous opportunity to drive in-store traffic,
specifically in the areas of display and video advertising.
For example, most retailers missed the opportunity to offer localized in-store promotional specials (via
digital channels), a tactic which could no doubt yield positive results in helping local branches of a
large chain connect with the consumer on a more personal and localized level.
“Retailers tend to rely heavily on digital marketing efforts to drive e-commerce sales, but it’s equally, if
not more important to drive people into stores. It’s our belief that all marketing efforts should work
together to help customers navigate all of the touch points along the path to purchase,” commented
Gretchen Joyce, president of MaxPoint Interactive. “As the critical holiday season approaches, retailers
should look for opportunities to use local targeting to drive traffic into their stores and restaurants.”
To obtain a full copy of the report with the evaluation criteria and additional findings, including top
retailers within each of the four vertical markets, please visit
www.maxpointinteractive.com/insights/rsrlocal.
About RSR Research
Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry.
RSR provides insight into business and technology challenges facing the extended retail industry, and
thought leadership and advice on navigating these challenges for specific companies and the industry
at large. RSR’s services include benchmark reports covering the state of retailer technology adoption
for topics ranging from merchandising and supply chain, store operations and workforce management,
to customer-facing and multi-channel technologies. Custom research reports provide more in-depth
views into topics of industry interest, and advisory services help retailers and technology vendors
make the most of the insights RSR provides. To learn more about RSR, visit www.rsrresearch.com.
About MaxPoint Interactive
MaxPoint Interactive’s retail advertising platform drives in-store sales for retailers and brands. The
company’s Digital Zip™ technology delivers the most effective and scalable neighborhood-level online
campaigns. MaxPoint can pinpoint qualified customers interested in purchasing your product with
more precision than using traditional zip codes, ultimately offering accurate neighborhood-level
targeting with national scalability and reach. Founded in 2007, MaxPoint has offices in New York,
Chicago, Austin and Raleigh-Durham. Learn how our easy-to-use platform can generate brand safe,
rapid ROI for you by visiting www.maxpointinteractive.com. Follow us on Twitter: maxpoint_int.
Contact:
Keri Bertolino
fama PR
617-986-5007
maxpoint@famapr.com