Brick-and-mortar retailers in particular are facing enormous challenges: The consequences of the coronavirus pandemic, rising inflation and the effects of the Ukraine crisis are causing rising prices and energy supply bottlenecks. On the one hand, this is putting pressure on consumers, who are becoming increasingly price-sensitive, while at the same time increasing costs for advertisers, for example due to higher paper prices. In these transformative times, it is important to optimise the use of available resources.
Another challenge: no two retail locations are the same; each location has its own individual and local characteristics. Many framework conditions, such as competitive pressure, the digital affinity of the population or even advertising refusal rates, fluctuate greatly on a hyperlocal basis. The MEDIA Central Group, consisting of MEDIA Central, the market leader in haptic offer communication, Offerista, Europe's largest network for digital retail marketing, and Yagora, a specialist in data analytics and data science, has created an innovative solution for location-based retail marketing with its new product called Local Media Mix Modelling, or LM³ for short, taking advantage of decades of expertise in the market.
For the first time, the advantages of traditional print marketing are combined with the benefits of the digital world. In addition to the Offerista Group's unique network of over 1,400 independent partners, the MEDIA Central Group intelligently incorporates all providers available on the market for digital offer communication and other channels such as radio or out-of-home into the geo-intelligent and target group-orientated recommendations for action for advertisers.
Based on the 360° solution approach, which considers print-based and digital offer communication synergistically, the market leader has created a product to optimise convergent offer communication with Local Media Mix Modelling: LM³ analyses the framework conditions of each individual retailer location using automated spatial data modelling to determine the best possible use of print and digital marketing for retail companies. This is a continuous process that learns with each display and is constantly optimised. The location-specific factors of each advertising area are incorporated into the analysis on the basis of data and geo-intelligence, resulting in the optimal print and digital deployment - from a single source. The integration of the data-based analysis and consulting service provider Yagora into the MEDIA Central Group will professionalise campaign measurability from product level through to conversion of the customer frequency generated in sales per shop.
Ingo Wienand, CEO of the MEDIA Central Group, says: "As a solution provider, the MEDIA Central Group is creating the most innovative solution on the market with Local Media Mix Modelling, which enables our customers to play out campaigns in a locally optimised way while at the same time offering maximum flexibility in an increasingly dynamic market. Instead of silo thinking, we are creating a completely new approach that is optimally aligned with changing market conditions."
Benjamin Thym, Managing Director of the Offerista Group and CDO of the MEDIA Central Group, adds: "The goal we are pursuing with Local Media Mix Modelling is to continuously optimise the media use of our retail customers for each of their shops by analysing relevant influencing factors using our AdTech, to make it as efficient as possible and to support the retail companies in the transformation process that is currently taking place."
About the MEDIA Central Group
Strong brands for strong communication solutions: The MEDIA Central Group unites MEDIA Central, the Offerista Group and the foreign companies MEDIA Central Poland and MEDIA Central Czech Republic under one roof. The MEDIA Central Group supports its customers as a trusted partner and holistic solution provider for successful 360° offer communication. The Group's solutions and services make a significant and measurable contribution to increasing sales in the retail sector. As the market leader in unaddressed household advertising, MEDIA Central manages over 15 billion leaflets a year. The Offerista Group is Europe's largest network for digital retail marketing and bundles over 260 platforms and reach partners in its own native network. The Group has over 400 employees at 11 locations in 6 countries and currently serves customers in 24 countries and from all sectors.