Dive Brief:
- Walmart spent approximately $850,000 on paid grocery search ads in the past year, according to search marketing intelligence firm AdGooroo, making the world’s largest retailer the biggest paid search advertiser in the grocery category. The retailer also led in click-share, capturing 19.1% share of total clicks on 124 category keywords studied.
- Aldi ranked second among all grocery category advertisers in both past-year spending ($441,000) and click-share (11.6%).
- The research measured search ad spending on 124 non-branded grocery store and grocery delivery keywords from June 2016 to May 2017. Safeway, Kroger and Fry's — a Kroger banner — rounded out the top five among paid grocery search advertisers.
Dive Insight:
It’s not surprising that Walmart was the top spender on paid search ads. What’s more interesting is that Aldi, which doesn't even have an e-commerce arm in the U.S., came in at number two. Given the increasingly important role that digital and mobile play in brand marketing strategies, it's clear retailers of all types need to spend in order to stay top-of-mind with consumers online.
The pre-purchase shopping routine today takes many twists and turns as consumers move from clicks to bricks. Consumers today have more tools than ever before to conduct research online before heading into a store or while in-aisle. Consequently, retailers that leverage best-in-class digital content — including being able to be “found” based on keywords and search engine optimization — are more likely to win over the final sale, whether online or in-store.
More than 65% of consumers conduct online product research before ever stepping foot in a store, according to Retail Dive’s consumer survey. Furthermore, digital interactions now influence 56 cents of every dollar spent in brick-and-mortar stores, according to Deloitte Consulting. And one in three shoppers use their mobile devices while in a store to help them make a decision when buying CPG products, according to research by WSL Strategic Retail.
These findings underscore the importance of not only integrating digital into a retailer’s overall marketing plan, but of investing in strategies like paid ads to acquire new shoppers in the online space.