Cartifacts Second Edition

cartifacts SECOND EDITION

Cartology's

must-read

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

Cartology turns one!

CARTIFACTS

Welcome to the latest edition of Cartifacts

S

o much has happened over the past few months, not just here at Cartology, but more specifically across the industry which has been responding to an epic year of customer transformation. What’s clear is that whilst the needs of many customers remain constant, it is the level of expectation around these needs that have significantly elevated.

The customer experience trajectory has hit light speed as Covid has seen customer trends leap forwards three years in the space of three months, especially when it comes to digital and eCommerce convenience. We have all experienced first hand the changes in our shopping behaviours and for brands these changes are universal regardless of category.

As it becomes increasingly more challenging to engage shoppers , campaign impact has become far more critical and engaging customers on their shopping journey has an even greater focus. The shopping journey is no longer linear. For many customers shopping is now a hybrid, omnichannel experience based on personal preferences. For some, this means continuing to shop in-store only, but for an increasing cohort of customers, this means researching and planning their shopping experience before they go in-store.

And for others, it will be planning and buying everything online.

At a time when marketing budgets are working harder than ever, we understand that proof points are increasingly important. In this edition, we showcase Cartology Reporting, and our enhanced measurement capabilities, which has commenced its exciting roll-out.

In order to move forward with our reporting,

2

we had to first look back. We listened to our partners about the importance of closed loop measurement and we were able to better understand the improvements you wanted to see. With a clear, staged roadmap we will continue to evolve our reporting capability and the metrics to better measure effectiveness and prove campaign outcomes.

We also go deeper into Cartology’s digital screen solution, the singular point of persuasion at the entry threshold to the illuminated store ecosystem as well as get to know our Sales Enablement Manager, Chris Gin. It would also be remiss of me not to celebrate our first birthday. There is something magical when reflecting on where and how we started; recognising how far we have come and what we have achieved together. This time of reflection is always a proud moment for me.

All this and more. I hope you enjoy our latest edition.

Samantha Osborne General Manager Cartology NZ

CARTIFACTS

Jessica Blackwell - Business Analyst

Jess has been working in the Media Industry for the past 5 years and enjoys the fast pace environment it provides. "I am looking forward to supporting the team, providing insight and reporting that will allow our clients to make informed decisions to drive sales.

Sasha Barleyman - Senior Finance Business Analyst Having worked as a finance business partner for just over 4 years, most recently with Countdown, Sasha loves to help turn the complex into simple. "I'm excited to delve into the world of media, get under the hood of the Cartology financials and support the team as we continue to scale and grow.

Kirsten Ross - Content Coordinator

Kirsten has been working in digital marketing for the past 3 years. She has a passion for connecting brands with their target audiences in meaningful and creative ways. "I'm excited to collaborate with the wider Cartology team to build and execute content for some of New Zealand’s largest FMCG brands.

Cassandra Roberts - Assistant Marketing Manager

Cass has spent the past 3 years working in Marketing for the education sector, putting her Masters of Marketing to practice. Cass is passionate about finding solutions to improve engagement though brand, insights and creative marketing content and is excited to be a part of a team that is shaping the future of retail media.

Maddie Irvine- Campaign Specialist

With a background in brand and digital marketing, Maddie has moved across from CountdownX as a Digital Content Coordinator. She is looking forward to working with some of New Zealand’s leading FMCG brands and being a part of the exciting growth Cartology is achieving in the retail media landscape.

CARTIFACTS

Cartology turns 1!

A year in review Well, we've done it, and we've come a long way. To say that our first year as a business has been full of change would be an understatement. I don't need to touch on the ongoing pandemic and the various ways that brands, companies, and customers have had to adapt, and re-adapt, and then re-adapt again. It's been a time of constant learning, growth and real collaboration.

Our People When we launched in February 2021, we were a team of 20 working across sales, marketing, operations, finance, and sales enablement. Just over a year later, we've grown by 75% to a team of 35 Cartologists.

Those 15 new team members are spread across all our teams; all determined to deliver a Tier 1 media experience to our clients, driving real results. This increased level of expertise means we can significantly improve our already strong offering, giving our clients confidence that we will provide the highest level of client service while creating bespoke solutions to grow their brands.

4

A year of innovation, grounded in the customer experience The newly formed Product and Platform team has developed a number of innovative products.

In fact, we have launched 7 new channels, specifically focused on digital to capitalise on the accelerated growth in eCommerce. We offer our clients solutions to reach these highly engaged shoppers to enhance and improve the overall shopping experience for Countdown customers. We'll continue to see growth and innovation across our network throughout the following year.

Keep an eye out for these exciting new assets!

We saw client campaigns shine A staggering 3,381 client campaigns were planned and booked in year 1. It's impossible for us to single out a specific campaign as we saw brands from across 245 subcategories advertised in-store and online. However, from the end of campaign reports, it is so amazing to see the stellar results that those brands have achieved and how those results have also contributed to overall growth for their respective categories.

Added new events to the activity calendar Countdown already has a strong events calendar, but over the last year, Cartology has introduced several new trading moments, such as Big Night In, which have given brands further opportunities to reach Countdown customers outside of brand activations.

These new trading moments are all built on customer insight, aimed at engaging shoppers with relevant occasion-based initiatives.

A final word It has been said, 'without challenge there is no growth'.

It's been an outstanding first year of growth, and none of this would have been possible without the ongoing support, input and feedback from our clients. We look forward to making Year 2 even bigger and better, and continuing to partner with you to deliver positive outcomes for our respective businesses.

Happy Birthday Cartology

CARTIFACTS

Case Study: Valentine's Day Background Cartology trading moments are commercial opportunities throughout the year, that reflect consumer trends, spikes in footfall, online traffic, and sales.

Aligning with our trading moments calendar provides opportunity to drive higher return from your media investment. In this edition, we feature the Valentine's Day activation. February 14th - deemed to be the most romantic day of the year as couples celebrate their love and appreciation for each other. The most common practice is to buy

appreciation or their love for a friend, family member or even their pet! In fact, 68% of single Kiwi's say that they still celebrate the day, either with friends or by treating themselves.

Three main objectives: Influence Countdown shoppers looking to treat their loved ones.

1 2 3

Associate your brand with a key seasonal calendar event.

Engage with shoppers and drive incremental sales for your brand.

Campaign Results 123% increase in sales for participating products during the campaign.

148% increase in online sales for participating products during the campaign.

gifts and share a nice meal together. Most Valentine's gift buyers opt for flowers, cards and confectionary, but some like to splash out on beauty & cosmetics.

Campaign Objectives Valentine's isn't just limited to romance of lovers - many see it as a day to honor self-

Solution A 1 week campaign with integrated, multi-channel media packages designed to include a combination of broadcast, online and in-store media to showcase the Valentine's product range and targeted media, such as EDMs to reach out to active shoppers in a particular category.

17% YOY increase in sales for participating products.

198% YOY increase in online sales for participating products.

Source:Quantium first party transaction data

5

CARTIFACTS

The rise of retail media: Disrupting the consumer purchase funnel

I

nitially framed as an extension of performance media vehicles, retail media is now proving to offer brands a full-funnel solution - all with unrivalled measurement and attribution capabilities.

Retail media has gained huge traction into the turf once held by large traditional broadcasters and publishers in the US - and while the retail players in New Zealand are fewer, the outcome may ultimately be the same.

This emerging retail landscape features a blend of physical and digital shopping and increasingly savvy consumers who traverse both worlds. In fact, 30% of shoppers are now omnichannel. And as a result, with new habits and raised expectations, the consumer relationship with brands is evolving.

It’s no surprise then that this new normal also has major implications for marketers, who must now address changing consumer preferences relating to retail advertising, personalized shopping experiences and loyalty. The good news is that despite growing concerns about digital privacy, consumers are interested in brand relationships that incorporate advertising.

6

For example, they are generally receptive to targeted ads — particularly from retail brands they like. 71 percent of shoppers say they’d prefer to receive limited, tailored ad experiences instead of paying to avoid ads.

And those brand relationships are now firmly entrenched on retail eCommerce sites.

Over half of consumers (53 percent) have said they noticed sponsored products or ads on retail sites. Among those that recall seeing these sponsored products or ads, 42 percent claim to frequently or sometimes click to make a purchase. As brands pioneer new approaches to retail marketing, retailers themselves are making more of their valuable shopper data

available so that brands can finally make the connection between advertising activity and consumer action, whether online or in-store. With the imminent demise of thirdparty cookies, we are seeing a surge in interest in leveraging this data in order to finally achieve that holy grail of marketing.

"53% of consumers have said they have noticed sponsored products or ads on retail sites"

CARTIFACTS

R

etail media is poised to become one of the most potent and well-funded areas of marketing investment among brands. And the role of retail media is evolving.

sales. That’s why 76 percent of marketers say they plan to use loyalty card point-of-sale data either frequently or very frequently over the next year.

As a result, sales data is crucial for brands, especially as the marketers noted their A steadfast eye on customers top challenges as measuring has been a critical part of business outcomes (32 Woolworths’ ethos. percent), understanding the increased complexity of the What started as a way for customer journey (32 percent) brands to engage shoppers during their in-store experience, and optimizing cross-channel campaigns (32 percent). has now grown to allow Retail data addresses many brands to find new ways to of these challenges. This engage shoppers throughout data also opens new avenues their customer journey. for more accurate and Increasingly, marketers actionable attribution tracking are looking to retail media to close the loop between broader campaign activity and consumer purchases. In fact, retail data is viewed by marketers as effective in both building brands and driving conversions: 39 percent of marketers surveyed in the US said they use it to drive brand equity scores, while 44 percent said they now use retail data to track sales growth.

Why? Because retail data is rooted in valuable sales data — or the data associated with a purchase. This typically includes product information, SKU-data, the time of purchase, payment used, location, among other details.

Access to past purchase data helps marketers best predict future purchase behavior or habits. These details enable marketers to understand what media tactics are leading to

across digital and physical environments. While tracking the impact of search-based ads placed on retailers’ sites is fairly straightforward and immediate, marketers can use shopper data to connect digital ad exposures on the web to real-world, in-store purchases.

This is great news for the 43 percent of brands surveyed who noted sales growth as a top KPI of marketing success.

What was once abstract is now possible — consumer packaged goods (CPG) brands can connect ad exposures to in-store purchases made by specific target audiences.

Additionally, CPGs can work with retailers to advertise specific products to consumers by leveraging SKU-level insights and then measure the sales impact across a wide array of media channels.

This levels the playing field for a sector of the industry that is looking to SKU-level

insights and then measure the sales impact across a wide array of media channels. This levels the playing field for a sector of the industry that is looking to leverage its valuable data, such as insights from loyalty programs, in a privacyconscious manner.

7

CARTIFACTS

Customer transformation and the future of retail What have we learnt through the experience of the past 12 months that can carry through and shape the future for e-commerce and shopper transactions within retail and shopping environments?

1

Digital is the new front door for brands in the customer-led era.

The explosion in digital engagement driven by COVID is well beyond anything brands could have anticipated just 18 months ago. Not only has the number of people online grown, but the level of deep engagement has equalled that growth.

Countdown.co.nz has experienced a 55% increase in digital traffic with around 60% of its customers who shop in-store starting their shopping journey online or in apps. Two in five customers connect with Countdown digitally every week.

2

The shopping journey is no longer linear.

For many customers shopping is now a hybrid, omnichannel experience based on personal preferences. For some, this means continuing to shop in-store only, but for an increasing cohort of customers, this means researching and planning their shopping experience before they go in-store. And

8

for others, it will be planning and buying everything online.

Countdown has unearthed some important insights when it comes to how their customers shop. They are researching the latest specials in the digital catalogue, check for personalised specials in Onecard Boost emails, search recipes and build meal plans, or navigate their local store with the sort-by-aisle shopping list feature in the Countdown app.

3

Customer-centricity - as change accelerates, it is the one constant.

Retail is going through such incredible change as we listen to customers and the way they want to shop. Retail at its core is about getting great products to customers - but the new customer landscape is about curating the range, personalising the value, havingna great store experience or delivering direct to where customers are.

Stores will remain the cornerstone of Countdown.

But the way customers interact with them will change

and the focus is on building great digital products that enhance the experience instore. Coundown believes retailers who put the digital needs of customers first and invest in truly great experiences will be rewarded for it with increased loyalty. Customers are demanding fast, safe ways to shop, with more inspiring, relevant experiences, and better value.

Cartifact Did you know 70% of customers research online and buy in-store

Convenience has become increasingly important – whether it is a short, specific window, or those who ‘want it now’. They are looking for real time anticipation of their needs to help save time.

Personalised, connected, and consistent journeys

CARTIFACTS

"Digital is the new front door of retail business, and the new world is a customer-led one." across the ecosystem are key, with an omnichannel experience based on personal preferences. All aspects of customers’ online journeys need to be relevant - from content, like recipes and product recommendations, to value offers and rewards.

Countdown draws on a rich base of insight to deeply understand how to create better experiences for customers – based on trends around where, when and how they prefer to shop. Activating the digital ecosystem to deliver a seamless, connected customer experience and engage more effectively

- in relevant ways and at appropriate times - is a huge opportunity for brands.

It’s important to be open to change and ready to adapt - if the last taught brands anything it’s that they need to be prepared to pivot based on changing environments and customer needs. The pace of change may not be the same but it is crucial brands continue to tailor digital experiences to put customers first. The customer is in control. They call the shots over what they see, where they see it and how they buy it.

9

CARTIFACTS

Cartology reporting closes the loop With its first release, our new reporting platform will improve delivery, reduce errors, and improve flexibility.

This is just the beginning.

With Cartology’s business capabilities going from strength to strength, we are excited to announce new reporting capabilities that signify a step forward in our commitment to provide greater campaign accountability and help clients better understand campaign performance.

The new Cartology reporting capabilities represent a significant step forward. As a result, we now have a clear roadmap of enhancements to be released in stages over the coming months.

Reporting 1.0 - The power of three Offering three key enhancements, the first phase offers faster reporting, omni-channel reporting capabilities and an introduction of new business and media metrics, allowing for a deeper understanding of a campaign’s performance.

10

Faster reporting Significant progress has been made in our transition to our post campaign reports being 100% automated, with timely data refreshes Cartology can produce reports within 5 weeks of campaign completion.

Omni-channel reporting Providing reach and sales performance for integrated media campaigns, category events and trading moments.

Introduction of New Metrics One Card - used to highlight new customer acquisition and performance reach.

What’s next on our roadmap We have a clear roadmap of improvements that will be released in stages over the coming months.

Phase 1.1 - Benchmarking and category landscape • Channel completeness to incorporate off network media • Campaign delivery benchmarking • Category and brand performance insights

Phase 1.2 - Sales attributions and deeper customer insights • Attributed sales demonstrating the relative influence of each media touch point • Deeper insight into new customers acquired during the campaign and brand growth insights

CARTIFACTS

WHAT'S NEW: ✔ Improvement in automation

Less manual intervention delivering greater accuracy of results

✔ Ability to split

New to Brand and New to Product results

✔ Speed to market

Post campaign results produced within 5 weeks of campaign completion

✔ Omni-channel PCO

Deduplicated results using One Card data

✔ Timely data refreshes

Allows immediacy of campaign performance after flights of media activity

Trys thi

L INAIPS ORIG CH RN CO

L NA IGI IPS OR CH RN CO

ORIG COR INA N CHIPL S

ORIG COR INA N CHIPL

S

11

CARTIFACTS

Getting to know...

Chris Gin

Sales Enablement Manager

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

1 How Retail Media is Reshaping Retail

2 The Rise of

Commerce Media: The Opportunity for CPGs

3 Omnichannel, the new retail media frontier.

As a highly experienced strategic commercial and marketing executive, Cartology are fortunate to have Chris Gin implementing successful sales and marketing business development strategies in his role as Sales Enablement Manager.

Q

Tell us about your role at Cartology?

I am in the unique and fortunate position where I get to collaborate with many business units across the Countdown ecosystem.

There are 2 key areas I am responsible for:

1

Custodian of all Countdown category events, major marketing activations and Countdown Continuity Plans. I work closely with the respective merch teams, various marketing teams, and the actionable insights team on how best to amplify and execute initiatives that deliver commercial benefit for our supplier and business partners, Countdown and Cartology.

My team also deliver all the Post Campaign reporting for supplier campaigns and all the initiatives mentioned above.

2 12

We are on an exciting journey in this space with the aim to improve response times and more insight.

Q

What's exciting for brands who partner with Cartology?

Cartology is very much still in its infancy as a business, hence we have a robust growth plan.

More importantly, the opportunities for client partners are endless, from new product development, introduction of new initiatives for suppliers to be involved in at a category level, and projects that drive and develop the retail media industry in New Zealand.

Initiatives such as “Big Night In” and “Meet the Winns” allowed all tiers of suppliers to engage with Countdown Shoppers through occasion and seasonal based offerings. The development of the “Fill the Freezer” series of trading moments have been highly successful for suppliers and the category as a whole.

CARTIFACTS We have also developed customised solutions for various suppliers that have delivered exceptional results.

Q

What can we expect from your team over the next 12 months?

F23 is going to be a huge year.

From a reporting perspective, the market will see continuous improvement in media and shopper metrics and response times as we progress toward automation.

Without giving too much away, we have an actioned packed category event and marketing plan - exciting. We will endeavour to showcase our plans (within reason) to allow partners to plan and engage with Cartology for their F23 plans.

(logo1)

Always on my shopping list ✔ Banana

Bread & Vanilla Bean ice cream for me

✔ Dairy

Free Magnum and Ben & Jerry's my youngest son has allergies

✔ Pinot

Noir & Rose

for my wife

✔ C hocolate,chips

&

biscuits for the 3 boys

13

CARTIFACTS

Screen time Creating an effective omnichannel customer journey can be challenging. Cartology’s Front of Store Screen Network enables brands to ‘switch on’ in the moment it matters the most.

W

ith 158 screens located at the entrance across Countdown stores nationally, digital screens offer brands proximity at scale and with 100 percent on-target positioning they directly impact customers at the point where they are primed to purchase.

In-store still represents the greatest opportunity to reach shoppers at scale with a total of 96 percent of shoppers still visiting the physical store.

Of this, 89 percent of shoppers still prefer to purchase in store therefore each touchpoint along the consumer journey plays an integral part in helping shoppers.

14

Omnichannel Customers 78 percent of Omnichannel shoppers like to discover new products whilst shopping and half of all shoppers purchase more than a third of their basket on impulse, dispelling the myth that baskets are completely planned and product choice finalised before customers come in store.

And that’s where the potential of Cartology’s digital screen network is unrivaled.

We know customers are open to influence as they enter our store environment and start their shopping journey. 35 percent of in-store customers agree screens help them notice products they might not have seen previously.

No other provider can offer this unique opportunity to influence customers moments before consideration and at the point of purchase. Only Cartology can put your brand inside a Countdown store.

Our digital screens are an engaging touchpoint to highlight new products to shoppers seeking discovery.

We have a huge opportunity to serve them with dynamic, visually appealing creative to increase awareness of new brands and products and make connections with customers in the moment that matters the most.

How we measure impact is what sets us apart We measure true effectiveness and eliminate any guesswork. In 2021 Cartology screens delivered an average of 59 percent new to brand customers. While other OOH vendors offer the “opportunity to see” here at Cartology we show “sales you can see”

CARTIFACTS

Cartifact

158

Full motion digital screens improve memory encoding and emotional intensity by 2.5x that of static imagery

Screens across Countdown supermarkets nationally

SOV

1 in 6 SOV at 10" slot length 4x CD marketing slots

Direct line of sight Positioning to trigger purchasing as customers enter stores

Single Format

Best-in-class 65" UHD Panel

Targeted

Store-relevant content and clarity on exactly where screens are located

Dynamic

Dynamically drived content in real time

Cartology Digital Screens

Are a key touchpoint along the customer journey. When customers step over the threshold they are primed to purchase and open to suggestions, with

80%

of shoppers having planned less than half of their in-store spend 15

CARTIFACTS

The proven way to connect your brand with

shoppers ready to purchase!

CPP - Cartology's self-service marketing platform that was created as a response to the rapid growth in eCommerce, is expanding its offering in 2022.

With millions of monthly product searches on countdown.co.nz, digital shelf space is now as critical as in-store. Cartology Promoted Products (CPP) increase brand 'on-shelf' visibility in the online shopping

environment to maximise sales. After immense success, this July, the CPP offering will be expanded to 6 tiles from the previous 4 as well as the addition of new department and category CPP inventory.

BE SEEN TO BE SHOPPED

OMNICHANNEL IMPACT

90% of audiences see only first page results

61% buy the exact same product within 4 days

HARNESS BROAD INTENT

NO MINIMUM COMMITMENT

92% of the top 200 searches on-site are generic

set up campaigns for as little as $5K

PRIORITY PLACEMENT MATTERS

PROVEN SALES PERFORMANCE

70% clicks come from the first 12 tiles

16

60%+ clicks r result in a sale

Maximise Visibility

Convert Intent

Switch on customers

Closed loop reporting

Deliver guaranteed visibility to shoppers primed to purchase

Intercept 60+ million online customer searches every month

Enabling brands to impact active buyers during their shopping journey

Providing superior, realtime insight into campaign effectiveness and customer behaviour

To find out more, get in touch with your Client Partnership Manager or cppsupport@cartology.co.nz

CARTIFACTS

Every Day's a Fresh Day

click to watch

Countdown has launched chapter two of the recently rebranded “Every Day’s a Fresh Day” campaign, hitting screens across New Zealand this past week.

Countdowns Director of Brand, Brid DrohanStewart fills us in on the story behind “Every Day’s a Fresh Day” Every Day's a Fresh Day is a celebration of Countdown's love for (or some might say obsession with) All Things Fresh.

The campaign was spearheaded by a beautiful 45-second piece of film that showcased all the love, effort and passion of our buyers and team members, as well as our growers and pickers - as well as their relationship with the land and elements. It showed how every single day brings a fresh opportunity to deliver on Countdown's Fresh promise.

A highly emotional piece, with the sheer reverence for our produce underscored by the accompanying track, a contemporary take on the Cat Stevens hit Morning Has Broken.

On a more rational level, this translated into our product promise of Fresh Every Day - the "What's in it for me" for our customers.

Chapter Two of the campaign shot in Kaipara, Pukekohe and Gisborne, shows Countdown's partnership with our growers and reflects all of the same passion as the original - this time for avocados (perfect every time), broccolini (exclusive to Countdown) and leafy greens (as well as purples and reds).

17

CARTIFACTS

Get in touch Talk to us about our unique, customer-focused media solutions Contact your Client Partnerships Manager or email us info@cartology.co.nz for more information or visit cartology.co.nz

Connect with us on LinkedIn

18