Moscow, 13 December 2017 - X5 Retail Group, ("X5" or the "Company"), a leading Russian food retailer (LSE ticker: FIVE), and Mail.Ru Group have launched a partnership to measure the impact of targeted online advertising on offline sales. The solution has already been tested by the global media group Dentsu Aegis Network.
The partnership between Mail.Ru Group and X5 will provide myTarget platform clients with access to anonymised data about X5 consumer behaviour, with a view to enhancing the accuracy of ad targeting and linking ad impression data with sales performance at the Pyaterochka, Perekrestok and Karusel chains. During the test period, X5 created anonymised customer segments for specific advertisers, dividing potential customers into groups based on their consumption patterns. Such customer segments were accessed through Data Marketplace myTarget. In the near future, public segments will be added featuring a CPM-based monetisation model.
This will contribute to improving the efficiency of online advertising campaigns and help advertisers to better understand the demand curve for specific products. The pilot campaigns run by Dentsu Aegis Network using X5 data brought its clients to a completely new level in converting ads into sales.
"We help advertisers achieve the best conversion rates through continuous improvement of myTarget functions. Today, as part of our partnership with X5 Retail Group, we are pleased to offer our customers new opportunities to assess the effect on offline sales of online ads, coupled with new targeting opportunities. With a wider range of customer segments available, businesses are able to select target audiences for advertising messages as accurately as possible," commented Elina Isagulova, Vice President, Commercial Director of Mail.Ru Group.
X5 Retail Group Strategic Marketing and Planning Director Vadim Kapustin said: "Comprehensive knowledge of customer behaviour, individual needs and preferences is what every retailer, telecom operator, bank and mass market company needs. At X5, we use accumulated purchasing data for effective marketing communication in the interests of food producers. By offering the opportunity to assess the actual impact of digital advertising campaigns on sales in the Company's stores, we provide food manufacturers with a powerful tool for optimising marketing costs."
Dentsu Aegis Network Head of Data Lab Mikhael Shklyaev said: "In cooperation with X5 Retail Group, we have managed to solve one of advertisers' biggest challenges: we now understand what impact each specific ad impression has on the offline sales of each product advertised. The mathematical model we have developed with X5 enables us to calculate cost effectiveness, optimise ad frequency, and choose the best formats using actual sales data rather than our beliefs or experience."
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