6 Ways to win shoppers who are adapting to rising prices
The International Monetary Fund said that inflation in Asia is expected to hit 3.4% this year1, with economic growth in the region being slower than expected. While we can’t wave a magic wand that improves the economic landscape, although we wish we could, we have solutions to help your brand connect better with shoppers.
Significant shifts in consumer behaviour
Higher pricing has brought new consumer behaviours, such as buying fewer items and switching to lower-priced options. In Australia, soaring inflation has consumers worried not only about rising prices but also their energy bills as people scrutinise consumption and look to become more energy efficient.
The EY Future Consumer Index shows that consumers are increasingly becoming more conscious of their spending with 44% saying that they only buy essentials, while two-thirds said that they think more carefully when it comes to spending money.Consumers are swapping going out to restaurants for cooking at home — in APAC alone, 47% reported that they’re cooking at home more, while luxury shopping has also taken a hit with 39% claiming they will spend less here. That said, price isn’t the end-all, be-all and value for money continue to be a key consideration for consumers, especially in the Asia Pacific region.
How to add value beyond pricing
As consumer behaviour adjusts to inflation, smart retailers and manufacturers are adjusting as well. While a brand’s initial instinct may be to offer discounts to attract price-conscious shoppers, there are plenty of ways to add value for consumers. For instance, brands can experiment with ad messaging and frequency targeting strategies to accommodate shifts in purchase behaviour, hold on to share of voice, and maximise ROI. Read on for our top tips for advertisers that help you reach — and resonate with — audiences in today’s economic landscape.
- Get the content right
These are challenging and unpredictable times. Consumers are looking for content that reflects their lifestyle and emotional state. Increasingly concerned about health, fitness, and wellness, Asia-Pacific’s shoppers are purchasing products that will make them and their loved ones feel safer and healthier. Advertisers that can provide valuable content such as expert wellness tips or insights on how to stay healthy will help consumers feel heard while addressing their concerns, building trust and creating better connections with their audiences.
- Stay informative and helpful
Ads influence purchase decisions, and the more informative your ads are, the better. During times of uncertainty or social unrest, consumers are over 4 times more likely to expect brands to run normal advertising campaigns than not,4 with 75% of consumers reported being influenced by online ads.5 By effectively communicating information that is current, accurate and useful, brands can help lead customers toward a confident purchase.
- Strike the right tone and sentiment
Shoppers’ plans for a return to normal have been upended by inflation, politics, and ongoing public health concerns. Even early in the pandemic, consumers reported fatigue from constant exposure to messaging around COVID-19. Empathising with today’s consumers means you must always be tapped into shopper needs and emotions, constantly fine-tuning your brand’s messaging based on how shoppers feel now.
- Refresh your offerings online
Online channels help consumers discover new purchases 4x more than offline channels. What’s more, consumers are looking for convenient shopping options and more budget-friendly items. By refreshing what you offer consumers, they would be delighted to explore what you have to offer while aligning on consumer incentives, aiming for the right price point on small pack sizes. This past quarter, 45% of consumers in APAC have used coupons, deals and promotions while shopping and 31% report having used a loyalty program to earn discounts.
- Embrace interactive efforts
Thanks to innovative technologies, new shopping experiences have emerged and are thriving. Consumers can inspect items from every angle with 3D catalogues, virtually try on a new outfit with AR and buy directly from their email inboxes and video ads.
Plus, new technologies are helping shoppers feel safe. It’s no surprise that consumers contemplating returning to brick-and-mortar stores have safety and hygiene top of mind. As a result, technologies enhancing contactless experiences are becoming sought after. For example, the use of QR codes in APAC is 1.9 times higher amongst consumers year-on-year (15% vs. 8.5%). This also brings renewed opportunities for brands to engage with shoppers at the point of sale, for example via interactive in-store navigation or fun gaming experiences.
- Tailor your offerings
Personalised content makes a big difference. Half of consumers report that if they receive personalised content, they’ll make a purchase and feel loyal to the brand. In a recent Yahoo survey, 88% of consumers said they see the benefit of personalised ads, listing qualities such as utility and relevance as the top benefits. Additionally, we have seen a significant 92% higher conversion rate for personalised ads over non-personalised native image ads.
For advertisers considering personalised, interactive content, Yahoo offers Dynamic Product Ads (DPA). DPA creates intuitive shopping experiences while featuring the products that consumers actually want. They dynamically pull creative from a brand’s product feed and display the content to users based on their unique online shopping behaviour.
How Yahoo can help
We always start with the consumer. Our experiences are designed to meet shoppers’ daily needs, inspiring them across the purchase path by weaving premium content with immersive formats powered by unparalleled technology and data. Our end-to-end commerce experiences reach consumers in key moments when they’re open to messaging, positioning your brand to thrive.
We enable you to easily buy immersive, personalised and innovative brand experiences in the #1-ranked DSP by Adweek. With new partnerships such as Shopify for small businesses, branded storefronts with our MikMak integration, and innovative ad solutions across our trusted content sites, we can help you capture attention, build trust, and meet consumers wherever they are. No matter what’s happening with the economy.
Connect with us for ideas and strategies that help you drive performance.