Advertising and Offline Retail: A Better Way to Track Shoppers (video)

A Better Way to Track Shoppers Offline

Stanford Graduate School of Business video above published Oct 9, 2017: Stephan Seiler, Associate Professor of Marketing, Stanford Graduate School of Business

YouTube.com auto-generated transcript (w/ minor edits):
00:00  [Music]
00:18  off-line compared to online retail is
00:20  still actually a very large fraction of
00:22  consumer spending so although online is
00:24  growing quite dramatically as of now
00:27  essentially still about 90 percent of
00:29  total retail spending happens in the
00:31  offline world and firms are still trying
00:33  to figure out how to best promote
00:35  products how to best run a price
00:37  promotions things of that sort and so we
00:40  wanted to go back and see can we
00:42  actually use tools that we learned about
00:45  it in the online world better types of
00:47  measurement and can we bring that back
00:48  through your flying world and try to
00:50  track things better so we know if I run
00:57  an ad online
00:58  I typically can track did somebody click
01:00  on it did it again to go to my website
01:01  how much they spend all this linkage is
01:04  much closer and those are often things
01:06  that we don't observe in the offline
01:07  world right so an online retailer would
01:09  know how did this consumer get to the
01:12  product you're ultimately purchased we
01:13  can observe browsing with a lot of
01:15  precision. Offline does usually no
01:17  equivalent traditionally we weren't able
01:18  to see how did somebody walk through the
01:20  store how did they actually get to the
01:22  specific aisle where they then picked up
01:23  products and so what we do in the study
01:26  is we actually bring in a new
01:28  measurement tool that's going to mimic
01:30  the way we're gonna observe things
01:31  online in the offline world and in
01:33  particular what we're going to do is
01:34  we're gonna rig consumer shopping carts
01:37  if you will with so-called radio
01:38  frequency identification tags which
01:40  worked like a GPS tracker that allow us
01:42  to track exactly how does somebody walk
01:44  through the store which category is
01:46  godigo? do they walk past what do they
01:48  eventually end up purchasing
01:50  [Music]
01:54  if in a particular week the supermarket
01:57  is running a beer ad do more people buy
02:00  a beer
02:00  that we were usually able to observe
02:02  even before but now we can also see did
02:04  actually more people go to the beer
02:06  aisle so did did that advertising
02:09  attract people to go to different part
02:11  was started they wouldn't have otherwise
02:12  gone to and then they made the purchase
02:14  if that's true then maybe this
02:16  advertising will have positive spillover
02:18  to other categories maybe people on
02:20  their way to the beer aisle are now
02:21  gonna pick up salty snacks other things
02:24  and so there's sort of anecdotally a lot
02:26  of that sense that we are gonna get
02:29  these kind of spillover effect so people
02:31  often talk about the fact that milk gets
02:33  stored in the back of the store
02:34  why because people buy it very
02:36  frequently and having it in the back of
02:38  the store makes them walk past a lot of
02:40  other categories and hence they might
02:42  pick up other things that they didn't
02:43  plan on buying on their way and so you
02:46  could imagine that advertising does
02:48  something very similar if advertising
02:49  allows me to divert traffic to other
02:51  parts of the store then maybe products I
02:54  pass on that way also gonna end up in my
02:56  purchase basket and so that was
02:59  something that we weren't usually able
03:00  to observe
03:01  [Music]
03:05  so for a store manager the good news
03:08  here is that advertising is quite
03:10  effective beyond just individual product
03:12  being advertised so what we find is that
03:14  when you advertise a particular brand of
03:16  beer sales go up in the beer category as
03:18  a whole and that increase comes partly
03:20  from the advertised brands but also goes
03:22  beyond that
03:23  so some consumers presumably just pick
03:26  up on effect beers being advertised
03:27  today they got reminded of I want to buy
03:30  beer and hence we seen increase in beer
03:31  sales and that's beyond the individual
03:34  product being advertised at the same
03:36  time we also find that the effect stops
03:38  there so to the extent that stores might
03:40  have to hope that driving more people to
03:43  the beer aisle through advertising will
03:45  then spill over into higher sales for
03:46  salty snacks or other categories that
03:49  are stocked nearby we find no evidence
03:51  for that whatsoever so we think so
03:53  things stop at the category level but
03:56  they go beyond individual product being
03:57  advertised and so hence as we think
04:00  about allocating advertising budget
04:02  thinking about effectiveness at the
04:04  level of the category rather than the
04:06  more narrow product level or the broader
04:08  store level seems to be the right way to
04:09  tackle that managerial decision
04:12  [Music]

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More Than Half The World’s Population Still Not Using The Internet

More Than Half The World’s Population Still Not Using The Internet (source: itu.int)

Note: The map above is based on 2016 estimates. The base map for this infographic is based on the UN map database of the United Nation Cartographic Section. (Source: ITU.int)

ITU, the UN specialized agency for information and communication technology (ICT), says 3.9 billion people remain cut-off from the vast resources available on the internet, despite falling prices for ICT services.

Digital divide means more than half the world is still offline: By the end of 2016, more than half of the world’s population – 3.9 billion people – will not yet be using the internet. While almost one billion households in the world now have Internet access (of which 230 million are in China, 60 million in India and 20 million in the world’s 48 Least Developed Countries), figures for household access reveal the extent of the digital divide, with 84% of households connected in Europe, compared with 15.4% in the African region.

ICT Facts & Figures 2016 shows that developing countries now account for the vast majority of internet users, with 2.5 billion users compared with one billion in developed countries. But Internet penetration rates tell a different story, with 81% in developed countries, compared with 40% in developing countries and 15% in the Least Developed Countries.

“Access to information and communication technologies, particularly broadband, has the potential to serve as a major accelerator of the 2030 Agenda for Sustainable Development. Global interconnectedness is rapidly expanding, however more needs to be done to bridge the digital divide and bring the more than half of the global population not using the Internet into the digital economy.”--ITU Secretary-General Houlin Zhao

ITU’s ICT Facts & Figures also reveals that mobile phone coverage is now near-ubiquitous, with an estimated 95% of the global population – or some seven billion people – living in an area covered by a basic 2G mobile-cellular network. Advanced mobile-broadband networks (LTE) have spread quickly over the last three years and reach almost four billion people today – corresponding to 53% of the global population. But while the number of mobile-broadband subscriptions continues to grow at double digit rates in developing countries to reach a penetration rate of close to 41%, mobile-broadband penetration growth has slowed overall. Globally, the total number of mobile-broadband subscriptions is expected to reach 3.6 billion by end 2016, compared with 3.2 billion at end 2015.

Fixed broadband growth strongest in developed countries. Growth in China is driving fixed-broadband in Asia and the Pacific, where penetration is expected to surpass 10% by end of 2016. Mobile-broadband services have now become more affordable than fixed-broadband services, with the average price for a basic fixed-broadband plan more than twice as high as the average price of a comparable mobile-broadband plan. By the end of 2015, 83 developing countries had achieved the Broadband Commission’s affordability target.

Internet bandwidth: By early 2016, international Internet bandwidth had reached 185,000 gigabits per second, up from a low of 30,000 gigabits in 2008. However, bandwidth is unequally distributed globally, and lack of bandwidth remains a major bottleneck to improved Internet connectivity in many developing and Least Developed Countries.

Read the full ICT Facts & Figures 2016 report. See also: ICT Facts and Figures 2016 | itu.int.

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