Drive-to-store represents €55 billion this year for retailers, which is 58% of the total ad expenditure from the industry going by a forecast by S4M. The company surveyed 400 advertisers in the sector.
Mobile will be a core driver of drive-to-store advertising by 2023, increasing to 26% all over the world from 19%.
Retailers are setting aside more of their resources for the format. Because of this, the format will contribute 65% of the total ad investment in five years.
Digital formats are expected to represent 68% of all the spend on the format, which will be a 4% growth from last year.
Meanwhile, advertisers want measurable solutions combining geo-location data and mobile technologies. According to S4M, combining social and mobile will generate top-performing channels that will drive future sales.
It is expected that by 2023, mobile will be a popular channel for retailers in the US who will allocate 28% of their budgets to drive-to-store. They will be spending only 3% on desktops.
The advertising format is popular in the US and will reach 64% of all retail by 2023, with the automotive industry taking the lead, followed by grocery and restaurant sectors.
At the same time, the format is growing in the UK from 52% to 75% in five years. Mobile will grow the fastest to get to 25%, social 22%, and search, 11%.
The grocery sector is the leading driver for the format in the UK with a 28% share. It is expected to drop 3% in five years.
However, TV, digital out-of-home, and programmatic, among other traditional formats, will continue to attract investment.
KPIs will include sales in-store. Traditional KPIs like click-through rates will be of lesser importance than they are now.