Supported the DX of the supermarket “Fresta”. New store visit rate increased 1.23 times by turning flyers into videos.
- FRESTA Co.,Ltd
- Digital Advertising
FRESTA Co.,Ltd operates a chain of supermarkets mainly in Hiroshima Prefecture. The company had been focusing on digital advertising as a measure to attract new customers, but felt that it was difficult to see the effects of digital measures on store visits. Therefore, using our service, "Rchika Cloud Studio," we converted flyers into video advertisements and distributed them to customers in the target store's trade area via TVer and other media targeting the child-rearing generation. We measured the effectiveness of the advertisements based on the purchase history of the electronic payment service. As a result, the store visit rate of new customers (those who had not visited a store for more than 3 months) who came into contact with the ads increased by approximately 1.23 times, leading to an improvement in results.
Issue: Measuring "Visit Effectiveness" of Digital Advertising
In the retail industry, the chronic shortage of human resources has led to calls for DX (Digital Transformation) to improve operational efficiency and productivity. In terms of advertising and sales promotion, there is an urgent need to shift from flyers to digital advertising in order to attract younger customers. However, digital advertising in the retail industry is extremely difficult to measure its effectiveness, and there are many companies that have not been able to successfully take the plunge.
Solution: Geo-targeting of video ads and verification of effectiveness
Therefore, we and Fresta, a long-established supermarket in Hiroshima, conducted a joint research on how to improve sales through digital advertising. The advertisements, which were animated flyers, were distributed to customers in the target store’s trade area using geo-targeting technology via TVer and other media targeting the child-rearing generation (distribution was made possible through ASE, a location information platform provided by Freakout, Inc.) We then measured the effectiveness of the video ads based on the purchase history of customers who viewed the video ads through our electronic payment service. Based on the measured effectiveness, we also made continuous improvements to the video ad creatives.
Results: Increased new customer visit rate by approximately 1.23 times
As a result, the placement of 360,000 yen worth of ads reached approximately 34,400 people, of whom approximately 2,900 passed through the cash register during the period (calculated based on purchase data from electronic payment users with whom Freak Out Inc. is affiliated). The store visit rate of new customers (those who had not visited a store for more than 3 months) who came into contact with this advertising was approximately 1.23 times higher.
Comments from Fresta
It is not easy to shift from the persistent belief in flyer inserts to digital advertising, and companies will not make the shift unless they can present clear results from digital advertising. In such a situation, it is necessary to improve the targeting accuracy of advertisements, distribute advertisements that match the target, and accumulate tangible results. In order to achieve this, we feel that it is essential to have a partner who can respond flexibly and quickly.
Comments from Richka
Coupled with the declining newspaper subscription rate, supermarkets and retailers are facing a significant challenge in responding to the digital marketing required to cultivate new customer segments that are not reached by inserts. On the other hand, we believe that it is not easy to shift from the deep-rooted belief in inserts to digital advertising. We believe that the success we achieved with Freakout, which is developing “ASE,” a digital ad delivery service that utilizes users’ location information, in improving sales through video advertising on flyers was a major step forward in our future development. We will continue to maximize the results and strengthen our efforts to attract customers and increase sales through digital advertising.