This year, drive-to-store represents €55 billion for retailers or 58% for the industry’s total ad expenditure, according to a new forecast by S4M based on the survey of 400 advertisers in the retail sector.
Mobile will become a core driver of the format by 2023, increasing from 19% in 2018 to 26% in 2023 worldwide.
As retailers devoting more resources to driving in-store traffic, drive-to-store will amount to 65% of their total ad investments in 2023 compared to 54% in 2018.
The increase is led by digital formats which are forecast to represent 68% of the global drive-to-store spend, compared to 54% in 2018.
At the same time, advertisers are looking for more measurable solutions that combine mobile technologies with geolocation data. S4M adds that the combination of mobile and social will be generating one of the top performing media channels to drive sales in the future.
By 2023, mobile will be a favourite channel for US retailers who are forecast to allocate 28% of their drive-to-store budgets to format. In comparison, advertisers will spend just 3% on desktops.
Drive-to-store advertising is more prominent in the US where it will reach 64% of all retail spend in 2023, led by the automotive industries but also the grocery and restaurant sectors.
Meanwhile drive-to-store is growing rapidly in the UK from 52% in retail ad spend in 2018 to 75% in 2023 driven by digital formats. Mobile will be the fastest growing format to reach 25% by 2023 followed by social (22%) and search (11%).
In the UK, grocery is a leading drive-to-store industry with a 28% share in 2018, dropping to 25% in 2023.
However, traditional formats such as TV, programmatic audio and digital out-of-home continue to attract ad investment.
Among the main indicators of performance, sales in-store continue to be a key performance indicator, whilst traditional KPIs such as reach and clickthrough rates rank lower in importance.