ClickZ Kitchenware Newsletter - 10.17.2024

PLUS: How retailers are turning markdowns into profits with targeted marketing strategies

Author

Priscilla Soedarpo
October 17, 2024 • Estimated Reading Time: 7 minutes

Ad Week New York 🎤

ADVERTISING INSIGHTS
Advertising Week NYC Recap

💡 Balancing Fame and Flow in a Post-Privacy Landscape, by Sam Carter, CEO of Fospha.

AdWeek NYC 2024 was packed full of fresh ideas and powerful reminders of evergreen principles. From navigating privacy challenges to ensuring sustainable brand growth, here are my key takeaways that all brands should be implementing:

  1. Balance Fame and Flow: Brands that focus too much on short-term conversions and neglect long-term brand-building efforts fall into the ‘doom loop’, converting only existing demand without generating new demand. Eventually the convertible audience is exhausted, efficiency plummets, and the brand finds itself in trouble. To avoid this, brands need to strike the right balance between conversion and long-term brand awareness to sustain growth.

  2. Go Full-Funnel for Measurement: To balance short and long-term goals of conversion and brand awareness, marketing teams need to be able to measure the impact of both. Last Click attribution chronically undervalues awareness activities, so brands should opt instead for measurement tools that use a full-funnel methodology.

  3. Privacy-Proof Your Tech Stack: With third-party cookies deprecation and new privacy regulations cropping up regularly, brands need to accept the death of user-level data and embrace privacy-centric solutions to future-proof their measurement. 

Read the full article here. 

Hot in D2C eCommerce 🔥

AI POWERS PRIME
Amazon Prime Big Deal Days 2024 Breaks Records with AI and Innovation (top links below 👇)

Amazon’s Prime Big Deal Days 2024 made history with the largest October shopping event ever, saving Prime members over $1 billion globally. This year’s event highlighted Amazon’s cutting-edge AI tools, including its AI assistant, Rufus, and drove massive sales across electronics, toys, and apparel. Top brands like Apple and Dyson offered unbeatable deals, setting the stage for a promising holiday shopping season.

Momentum Commerce reported a 41% sales increase on Day 1, with brands like Crocs and Lego leading the charge, while regions like Canada and Europe saw notable growth despite weather impacts affecting the U.S. Competitors Target and Walmart also launched early sales events, but Amazon's use of innovative shopping tools and AI set it apart in an increasingly competitive market.

For deeper insights into this record-breaking event, explore these key sources:

Specialty Bites 🍪

A recent study reveals that nine out of ten Americans prioritize their kitchen's aesthetics over other rooms, with half experiencing "kitchen envy" when encountering superior designs. This phenomenon is driven by a desire for better layouts and high-end appliances, with 22% believing that appliance quality significantly impacts their hosting capabilities. Notably, 42% of respondents covet a new refrigerator, emphasizing storage as a key feature for their ideal kitchen.

Conducted by Talker Research and commissioned by Thermador, the survey highlights that 25% of participants admit to snooping in others' kitchens, with 69% replicating observed features. Gen Z, in particular, shows a higher tendency to explore both kitchens and refrigerators, with 36% and 57% respectively engaging in such activities. The study also notes that 18% of individuals feel too embarrassed to showcase their kitchens, yet 59% would do so if it matched their dream design.

The research underscores the importance of kitchen organization, with 83% valuing an orderly refrigerator. Many respondents are willing to make significant sacrifices, such as forgoing takeout or vacations, to achieve their dream kitchen. Inspiration sources include friends, family, and social media, with Gen Z favoring YouTube and celebrity homes. This study provides a comprehensive look at the evolving kitchen aspirations and behaviors of Americans, reflecting broader lifestyle trends.

Retailers are shifting from markdowns to targeted marketing to boost profitability. By investing in margin accretive marketing (MAM), they can enhance full-price sales, optimize inventory, and maintain brand value. This proactive strategy, especially effective during holidays, aims to reduce discounts and improve overall financial performance.

AGA

AGA Rangemaster reduced its workforce by 21% after a challenging year, with revenue dropping from $144.6 million in 2022 to $115.5 million in 2023. Despite increased US exports, inflation in wages and materials impacted costs. The company remains committed to long-term profitability and strategic goals.

Wilko has launched a webshop on Amazon, expanding its digital presence with household and DIY products. This move, under new owner The Range, aims to rebuild Wilko's UK presence. The brand is also opening a new store in London, marking its return to the capital.

Performance Platters 🍽️

Microsoft is transitioning from its retail media platform, PromoteIQ, to a partnership with Criteo. This shift reflects the evolving retail media landscape, emphasizing the need for adaptable strategies. While PromoteIQ's closure isn't officially announced, the move highlights the importance of resilient, owned architectures in the dynamic ad tech industry.

Retailers often miss revenue opportunities throughout the purchase funnel, from accessibility issues to ineffective discount strategies and poor mobile optimization. In this insightful podcast, experts explore how optimizing these areas can reduce cart abandonment and boost customer retention. Additionally, they discuss how strategic return policies can enhance customer loyalty while minimizing losses. Listen now for actionable tips to create a more profitable retail experience.

LoopMe introduces Brand Outcome Scores, an AI-driven tool enhancing ad performance by predicting ad effectiveness without cookies. This innovation aids marketers in optimizing campaigns across mobile video, CTV, and display ads. Initially launching in the US and UK, BOS aims to revolutionize advertising strategies globally.

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