A retailer from nineteenth century Philadelphia named John Wanamaker famously remarked, “Half the money I spend on advertising is wasted. The issue is that I don’t know which half.” This remarkably insightful statement has endured over time, as brands have consistently grappled with this issue. Influencing consumer behavior in Canada presents a significant challenge.
Businesses understand they need to invest substantially in this area of marketing. However, quantifying the exact return on investment in terms of sales proves to be quite difficult. Nevertheless, the advent of the digital era has ushered in some shifts. This transformation is evident in the evolving landscape of the advertising sector in Canada. Where a significant portion of a client’s budget was previously allocated to traditional above-the-line advertising, the focus has now largely transitioned online. In 2023, $10.51 billion was dedicated to digital advertising, compared to $5.3 billion in 2021.
This figure not only overshadows the $2.2 billion allocated to TV advertising but is also projected to account for nearly 82% of total advertising expenditure by 2030. Alongside its relatively low production costs, digital marketing offers a crucial advantage for advertisers – its measurability. Each sale can be traced back to the initial customer interaction, allowing for precise calculation of the effectiveness of every dollar spent.
This shift has also ushered in a golden era for the types of digital promotions that particularly resonate with Canadians. Recent research conducted by Eagle Eye revealed that 77% of respondents expressed willingness to take advantage of an offer, with 64% indicating that relevance played a key role in their decision-making.
Types of Offers that Canadians Favor
All businesses recognize the potential advantages of presenting offers to their customers, whether through a well-targeted gift or merely a discount. Here are the types of offers that most effectively drive Canadian consumer behavior toward that crucial purchase.
Time-sensitive promotions
One of the most compelling motivators for consumers is the awareness of a limited timeframe in which to redeem an offer. A typical example of this promotion would involve providing a percentage discount on all purchases made before a specific date and time. The primary risk for retailers utilizing this strategy is overuse; consumers may quickly catch on that the same deal will be available again soon.
Complementary items
The second type involves the purchase of one item accompanied by a related product. For instance, someone buying a set of tools online might receive a free tool belt alongside their purchase. Alternatively, a light fixture might come with several free light bulbs. Both offers provide reassurance that consumers are receiving an added value. The online casino industry has adopted a somewhat different strategy, commonly offering welcome gifts for players seeking to claim an online casino bonus in Canada, with each bonus type featuring unique perks, such as a set amount of complimentary stake money or a certain number of free spins on slot games. There are numerous variations, all of which are immensely popular.
BOGOF
For those unfamiliar, this stands for “Buy one, get one free.” While this may not suit every sale, it can serve as a powerful incentive in the fast-moving consumer goods (FMCG) sector, where shoppers are often in need of multiple items like food, beverages, cleaning supplies, and other consumables.
The Significance of Discount Codes
A vital element in all these kinds of offers is the use of a specific discount code to redeem them. This process enables advertisers to trace the sale back to its origin. In some cases, they may also want to compare different presentations of an offer to determine which one works best. By implementing a code for each variation, analyzing the results becomes straightforward.
The most apparent motivator encouraging Canada’s consumer behavior to redeem an offer is the desire to save money. The second, subtler motivator is the feeling of being in a privileged position to take advantage of this savings. This enhances their overall positive perception of the brand.
Looking ahead, the integration of AI is expected to further enhance the success of these promotions through more accurate targeting utilizing the data that companies have gathered regarding various customer profiles. Thus, instead of pondering which half of a marketing budget is unproductive, advertisers will soon have the capacity to account for every cent spent.
And one can only speculate about what John Wanamaker might say about this.