{"id":184066,"date":"2023-04-28T10:39:09","date_gmt":"2023-04-28T02:39:09","guid":{"rendered":"https:\/\/www.grab.com\/sg\/?p=184066"},"modified":"2023-04-28T10:39:09","modified_gmt":"2023-04-28T02:39:09","slug":"why-ad-equity-is-essential-to-understanding-retail-media","status":"publish","type":"post","link":"https:\/\/www.grab.com\/sg\/enterprise-blog\/why-ad-equity-is-essential-to-understanding-retail-media\/","title":{"rendered":"Why ad equity is essential to understanding retail media"},"content":{"rendered":"\t\t
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As the advertising landscape continues to evolve, marketers are trying to stay on top of major shifts in consumer behaviour. Globally, long dominant players now control less advertising spend than they have in nearly a decade1<\/sup><\/span>. And here in Southeast Asia (SEA), video streaming, superapps and social commerce now compete with established digital platforms for advertising spend.\u00a0<\/span><\/p>

However, not all media channels are created equal<\/strong>. Consumers are more receptive to marketing messages on some – while more resistant on others. And as competition for eyeballs heats up online, maintaining customer engagement has become harder than ever for marketers. <\/span>Given that most media budgets for most Asia-Pacific (APAC) brands will either stay the same or shrink in 20232<\/sup><\/span>, how can marketers best allocate their limited resources to build brand equity and boost sales?<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Introducing ad equity<\/h3>

That\u2019s where <\/span>ad equity <\/b>comes in.<\/span><\/p>

Developed by Kantar, the world’s leading marketing data and analytics company, ad equity measures how receptive consumers are to advertising messages across different media channels, how they perceive ads on these platforms – and how likely they are to respond positively or negatively to ads. It\u2019s advertising\u2019s answer to the net promoter score, specifically designed for advertising formats and environments.\u00a0<\/span><\/p>

Every year Kantar ranks global and regional advertising platforms according to their ad equity score. Ad equity matters: Kantar found that campaigns are seven times more impactful among a receptive audience<\/strong>. What\u2019s more, by describing how audiences perceive marketing messages on different channels, these findings help marketers zero in on touchpoints that deliver most effectively on their marketing goals. The most recent findings were<\/span> published in the Media Reactions Report 2022<\/span><\/a>, the third edition of Kantar’s global ad equity ranking of media channels and media brands.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Retail media: promising new area for marketers<\/h3>

Out of all platforms explored by the Media Reactions 2022 study, retail media emerged as a particularly promising area for marketers. Two out of the top five ad equity performers in SEA amongst consumers were retail media<\/strong> platforms: Grab (#3) and Shopee (#5), a superapp and e-commerce app that offer advertising spaces for brands.<\/p>

Kantar believes this is because they play an important role for consumers in SEA. \u201cWe see from our data that apps like Grab or Shopee are perceived as relevant and trustworthy, and these are increasingly important to people,\u201d said Priya Dudeja, Media & Creative Effectiveness Solutions Lead at Kantar. This could be due to the fact that over the past few years, superapps have grown to bring great utility to consumers, helping them to commute, shop, eat and pay for services.<\/p>

Retail media is a hot topic these days. But what is retail media? And what does retail media look like in SEA? A relative newcomer to the region, retail media refers to advertising to consumers at or near their point of purchase, or near a point of choice<\/strong> between competing brands. For instance, superapps such as Grab offer marketers a variety of advertising opportunities right at the point of purchase:<\/p>