Media monetisation worth over £1.7bn in unrealised potential to UK’s grocery retailers

12 July 2019

LONDON, 12 July 2019 – New research conducted by dunnhumby media, part of dunnhumby, the global leader in Customer Data Science, has unveiled an unrealised potential worth £1.7bn for UK grocery retailers - and around £100 million for each of the three largest retailers in the UK.

Calculated using dunnhumby media’s Revenue Calculator - a tool that enables retailers to estimate their media revenue potential – grocery retailers have the opportunity to generate an additional 1% of their retail sales with media, which is equivalent to £11billion across the EMEA region. Retailers can benefit from a virtuous circle consisting of rich data assets telling them where, when, what and how customers shop, the ability to close the loop between media channels and in-store sales, and a more tailored approach to communication with new and repeat customers.

The exact monetisation potential by business depends upon a number of factors, such as a retailer’s data and technology maturity, the span of their media coverage across different domains and their multichannel presence, % sales from own label and their willingness to give brands creative freedom in the advertising space. However, this opportunity to make new revenue from their data and media assets exists for all retailers.

The top 5 retail businesses in terms of media revenue potential

Tesco

£170m

Sainsbury’s

£105m

Asda

£95m

Morrisons

£70m

Co-op

£30m

The calculator uses an algorithm that allows retailers to adjust for these areas to give a closer estimation of the revenue that could be realised.

“As it stands, only a handful of retailers are taking on the role of publisher. And for them, it’s a smart move, as the media opportunity is a big one,” said Jérôme Cochet, Global Managing Director at dunnhumby media. “Just think of the data and insights generated by browsing and shopping behaviour when compared to the actual products bought, across all the media touch-points retailers own, in-store and online.

“Over time, more and more retailers will look to adopt this approach to remain competitive. Continued pressure on profit margins means that retailers are feeling greater urgency about identifying new revenue streams, such as monetising their media assets. That said, retailers must take the right approach to doing this, otherwise they risk losing customers.

Done correctly, it’s an opportunity to connect with consumers where and when it matters most – which ultimately is what every brand wants to do.”

If you’d like to learn more about dunnhumby’s Media Revenue Calculator or see more results, please visit http://science.dunnhumby.com/measure-your-potential-media-revenue

 

ENDS

 

About dunnhumby

dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere to compete and thrive in the modern data-driven economy. We always put the Customer First.

Our mission: to enable businesses to grow and reimagine themselves by becoming advocates and champions for their Customers. With deep heritage and expertise in retail – one of the world’s most competitive markets, with a deluge of multi-dimensional data – dunnhumby today enables businesses all over the world, across industries, to be Customer First.

The dunnhumby Customer Data Science Platform is our unique mix of technology, software and consulting, enabling businesses to increase revenue and profits by delivering exceptional experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,500 experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative, iconic brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, L’Oréal.