Cartifacts Magazine – April by Cartology

cartifacts THIRD EDITION

Cartology's

must-read + The latest from research, insights and the retail media industry

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Welcome to the third edition of Cartifacts At Cartology, we talk a lot about customers. In fact, they’re at the heart of everything we do. One of the things that makes retail media unique is that it’s underpinned by access to actual customers and real interactions, not audiences. Real people, engaging, discovering and ultimately purchasing every day. At Cartology we exist to drive better experiences for customers through more thoughtful connections with brands. Whether in-store or online, our customers’ experiences are critical and having the ability to influence their shopping journey is incredibly valuable for brands. We know that 49% of our customers look to Woolworths.com.au for purchase inspiration, and 44% have told us their main reason for visiting the website has been to compare prices. With such active, highly engaged customers 2

this opens up enormous opportunity and measurability for brands. Coupled with the agility to measure effectiveness almost in real time, retail media can drive sales overnight and grow customers over time. It’s an exciting time in retail media, so in this edition of Cartifacts we’re sharing our insight into the new retail media opportunities for brands and how we’re working to create even better experiences for customers. Enjoy the read.

Mark Mansour

Director of Client Partnerships & Sales

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Have you seen our pet event in Woolworths stores yet? Our customers love their pets. In 2020 we saw a large increase in Australian pet ownership. In fact, pet food was up 11% vs the year before.

We get pets! 1 4 Australians have spent over $64M on dog and cat food in the last month.

Across the country, dogs take the lead with 4% more dog food items purchased.

Our customers in the NT purchase twice as much dog food than they do cat food.

Cats are cool in South Australia, where 28% more cat food is typically purchased than dog food.

It’s a pretty even split for dogs and cats in Tassie, but they love their feathered friends! Tasmanians are 50% more likely to spend on bird food, than their mainland counterparts. 3

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It’s retail media, but we think of it as new media

We speak to Mike Tyquin, Cartology’s Managing Director, to discuss the evolution of Cartology and how it responds to the changing retail and media landscape in Australia and New Zealand.

artology was born not because brands are demanding more and better data and insights (although they are), but because of the customer. With the power to choose where they consume content, how they engage with brands, and how, where and when they buy products, control is firmly in customers’ hands. For 95 years, Woolworths has built an incredible customer centric brand with over 20 million customer visits a

week to its supermarkets and a digital footprint as expansive as Australia’s top publishers. Cartology was created two years ago, to harness that customer relationship to help brands connect with customers. The operative word here is ‘customers’. Of course, all media publishers want to connect brands with audiences. At Cartology, we connect brands with customers. No one else can offer that, especially from a position of being one part of

the most trusted brands in the country. And our insights allow us to close the loop on customer transactions with zero waste. This will be strengthened by Woolworths’ increased investment to 75% in data analytics firm Quantium, providing rich insights for brands. We have evolved from a trade marketing resource for suppliers to a fully-fledged digitally led new media business. ‘New media’ because although our retail media channels across

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instore, digital screens, online ecommerce, search, magazines and radio are not new, we offer a multiplatform proposition with rich data and insights that directly reach customers. Over the past two years we have recruited senior media and data experts who can converse with brand owners, introduced new products and renewed others to improve our media offering and strengthened our accountability and reporting with meaningful insights to prove brands’ return on investment. Creating retail media businesses is something that retailers overseas, such as Walmart's Connect and Kroger's 84.51, have pioneered with great success. The biggest opportunity we plan to replicate is the ability to work with brands outside our ecosystem to inform their media buying with our rich data and insights. Cartology has so far been a resounding success for our brand partners, with a 500% year on year increase in the volume of campaigns run across our channels and proven commercial results for brands like Nestle, Chobani, Unilever and Reckitt Benckiser, to name a few. At only two years old, we still have a way to go to help

brands understand the nonlinear customer journey and how brands can drive sales in supermarkets. We will revitalise our instore screen proposition and Everyday Rewards communication. And we have big plans for campaign performance and attribution to hone our measurement. Cartology is still very much in its infancy as brands better understand their customers and how to utilise data across their broader media buying. As we focus on continuous improvement and innovation, this is just a glimpse into what lies ahead. 5

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The new shopping At Cartology we know that shopping habits are constantly evolving. We know that customers engage with us in store and online interchangeably. With this deep understanding of customer behaviour we know how they move within the Woolworths ecosystem. Cartology’s aim is to always enrich the customer journey.

In 2020 we saw shopping habits change dramatically. Woolworths.com.au had 20.2 million visits per week which was a 55% increase in digital traffic. We now see our digital platforms as the front door to the shopper journey.

She goes to do a click and collect shop the same product appears via Cartology’s Promoted Products

OR CO IG RN INAL CH IPS

Janet looks for recipe focused content for dinner

Trys thi

RE CIP

L NA IGI IPS OR N CH R CO

E ID

Janet receives a personalised eDM from Everyday rewards featuring the product

EA S

O CORIG RN INA CH L IPS

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journey She jumps online again and adds the same product to her cart

AL IN S IG HIP OR N C R CO

ART OC T D AD AL IN S IG HIP OR N C R CO

AL IN S IG HIP OR N C R CO

ART TO C D D A

Yum!

Try this

Janet walks in the store and walks past the digital screen – she walks to the aisle and sees a call to action, she's inspired to add the product to her basket

Thanks mum!

AL IN S IG HIP OR N C R CO

Janet scans her Everyday Rewards card at the register ALS GIN IP ORI CH RN CO

O CORIGIN RN AL CH IPS

Cartifact Did you know, our customers don't just head to Woolworths.com.au to purchase groceries? In fact, 44% have told us that their main purpose for visiting the website has been to compare product prices, and 33% are there to discover new brands and products.

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Make your brand stand out on the shelf We interviewed Amelia Stojcevski, Cartology’s Product Manager, on the benefits of Cartology’s Promoted Products (CPP) and how it maximises digital shelf visibility. What is CPP and why was it created? CPP was created to give brands direct power to buy premium digital space within search results, to effectively increase share of voice and sales on Woolworths.com.au It’s a self-serve marketing platform that was created as a response to the growth in eCommerce, as customer engagement has increased YOY. Why is CPP known as the powerful search media? Woolworths.com.au has more searches for grocery products than any other digital platform in Australia, with 48% of customers using search. CPP provides clients with access

to point of purchase digital media that enables brands to maximise their visibility to customers who are primed to purchase. It also gives them the opportunity to intercept millions of customer searches every month and switch-on customers during their online shopping journey. CPP is a pivotal tool to promote new products and drive new customer acquisition. At the height of COVID, when more and more customers converted to online shopping, CPP was a valuable media tool for brands to grow their share of voice online. It influences 60% of customers who use Woolworths.com.au to research online and buy in store, and it’s also a great tool for brands to have top of page prominence when combined with a search banner and keyword card. This year, the CPP has expanded paid search reach

through the expansion into the Woolworths app and launch within Woolworths Aisle & Category navigation pages. For our clients, CPP now provides the opportunity to reach customers throughout the path to purchase, whether they use the app to shop, or navigation menu to build their baskets.

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Did you know 49% of our customers look for inspiration during their shop online?

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How can I use CPP to drive sales during a promotion? Whether it’s above the line, or below the line media strategies. CPP plays an integral role in supporting both trade and brand initiatives at the moments that matter most.

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Getting to know... Nancy Veart

Nancy Veart heads up Cartology’s Client Partnerships and Sales team, where she shares her passion for driving customer-led solutions for brands.

What's the best thing about working at Cartology? Our people and our clients! I feel very fortunate to collaborate with such a driven and passionate team to create bespoke media solutions for our clients.

What’s exciting for brands who partner with Cartology? Cartology delivers the ability to reach more than 21.5 million Woolworths customers every week, both online and in-store. We have some really exciting things happening this year, including investments in people, improved systems and new digital media capabilities that make it easier for our clients to create first-tomarket campaigns that leverage all areas of the

Woolworths business. Together with Woolies X we are also developing a platform to deliver quicker post-campaign reporting and greater insight into performance.

Looking over your career, what makes you proud? I was one of the youngest female media leaders in Australia at one point. I'm also really proud to have grown my career while growing my family, with three kids under four. I’m often asked for my tips for emerging female leaders. I believe as a woman in leadership, you are part of the change. You don't need to do it all yourself but don't underestimate the impact you are making. Practice resilience, have humility, don’t compare yourself to

others, play to your strengths, take risks and find mentors. Build your self-knowledge, skills and networks, and treat people with respect.

What's the best advice you have been given? Business is about people – focus on humanity and you will be a better business person and leader. Remember that your team doesn't work for you, they work with you. And celebrate all successes, big or small.

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Always on my shopping list ✔ Weetbix – My three

teenage boys finish a 1.2kg box a week!

✔ 12L

of milk –

They love a Milo

✔ C hobani

Greek Yogurt

– Over Carman’s muesli

✔ William

Bartlett Pears – Great for lunchboxes

✔

KitKat Chocolate

– movie night with the fam

Industry insider Check out the latest news and global trends from the retail industry.

click to read

1 Cartology Launches Brand Activation 2 Brands as media owners on the rise:

Why Telstra, Woolworths and Commbank are driving new growth

3 Woolworths takes controlling stake in data analytics firm for $223million million

4 IAB Member Q&A Series: The Re-Telling Of Retail

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Fresh Food and Family Fun

The Woolworths Fresh Food Dome was back in action at this year’s Royal Easter Show, showcasing fresh food and celebrating our hardworking suppliers. With an abundant supply of affordable, quality produce on offer it’s never been easier for Australians to make healthy food choices. In fact, 72% of Woolworths customers say health is a priority for them, and more than 75% are regularly preparing homemade meals and eating fresh food. Two thirds of Australians claimed that they and their families practice healthy 12

eating, on a regular basis, which is slowly but surely rising over time. So it’s no surprise the Woolworths Fresh Food Dome was again a star attraction at this year’s Sydney Royal Easter Show. The Woolworths Fresh Market displayed an array of fresh food from Australia’s hardworking producers, also featuring interactive activities that took kids of all ages on a journey to learn where their food comes from.

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Cartifact 72% of Woolworths customers say health is a priority for them

The Dome is a testament to the Woolworths Group and a tribute to our farmers who work tirelessly to bring a consistent supply of top-quality produce to the tables of millions of Australians every day. Woolworths has been the proud naming sponsor of the Food Dome for over 21 years and has been a partner of the Sydney Royal Easter Show since 1968.

“The Woolworths Fresh Food Dome has always been renowned for celebrating our country's farmers who work tirelessly to deliver fresh fruit, vegetables, meat and seafood to the plates of all Australians. This year was no different. Our Woolworths experience took show goers of all ages on an immersive and educational journey that showcased where our fresh food comes from and our commitment to Australian farmers” SARAH DE LA MARE, HEAD OF COMMUNITY & SPONSORSHIPS Source: House of Brand Woolworths Value Research 2020

Cartifact Did you know, during this week last year 260,000 packets of ANZAC Biscuits were sold!

Get in touch Talk to us about our unique, customer-focused media solutions Contact your Cartology representative for more information