Domino's Pizza Group
In the UK, Domino’s Pizza has praised Facebook’s new advertising exchange as a “significant innovation.” It has committed budget to Facebook and the digital space overall for months to come. Nick Dutch, multimedia manager for Domino’s Pizza Group, spoke to eMarketer’s Danielle Drolet about the UK’s thriving digital ad market and the opportunities and challenges it will bring for marketers, particularly in mobile.
eMarketer: Is your commitment to Facebook part of a long-term shift away from paid advertising on the open web to marketing approaches using social networks, sponsorship, event tie-ins and so on?
Dutch: No, not specifically. It’s more a shift into defining the roles of our spend in the digital space and not lumping all display into the same basket. We utilize the likes of exchanges and real-time bidding platforms for more aggressive targeting and sales and driving acquisition activity, whereas the likes of social, video-on-demand and sponsorship play a very different role in the mix.
“Our spend in display is growing significantly year on year as we utilize the channel for both direct response and brand communications.”
eMarketer: Is your UK spending on paid search and/or display ads going up, down, or staying roughly the same?
Nick Dutch: Our spend in display is growing significantly year on year as we utilize the channel for both direct response and brand communications. Search has also been growing, but not at the same pace. We started on that journey a few years back, so our investment in search is already fairly high.
eMarketer: Do you place display ads via real-time bidding? If so, has this brought good results?
Dutch: Yes, we do. We’ve been working with our agency’s demand-side platform for a while now. Over time, we’ve seen an excellent improvement in its performance, to the point that now it’s the primary focus of our acquisition display activity.
eMarketer: Domino’s already uses mobile platforms, allowing customers to order online and via text. Can you share the latest results of these mobile initiatives?
Dutch: Online and mobile are key platforms for our business. In our Q3 interim management statement, we announced an online sales increase, with ecommerce accounting for 58.4% of UK delivered sales. Total online sales for the period rose by 39.3%. Within this figure, mobile sales continue to rise sharply—up by 46.9%—and now account for 18.5% of total online sales.
eMarketer: What have been the most important digital successes for your brand in the UK?
“Mobile sales continue to rise sharply—up by 46.9%—and now account for 18.5% of total online sales.”
Dutch: Our mobile commerce platforms have been a category-leading development, without a doubt. Take-up of the platforms has mainly grown organically, and their subsequent success is born from a combination of both user behavior—including more people transacting on mobiles—and the usability of the platforms themselves.
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