The Power of Retailer Data for Building A Retail Media Network
The world of advertising is an ever-growing industry with a revenue of ~1 trillion USD (GroupM 2024 Global Midyear Forecast) and if one area is slowing down, like linear TV advertising, another one grows instead.?
The current spotlight is on retail media which in 2024 will receive 16% of total advertising budgets. Thanks to Amazon’s monetization playbook, ads served on retailers and ecommerce companies’ owned and operated properties are booming in demand and growth.?
By: Niklas Nikolaidis on June 11, 2024 | Reading time: 15 minutes
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None of the growth happening to retail media could have happened without the strength and quality of the underlying retailer data. This article outlines what this data is and why it’s so important for sellers and buyers of retail media advertising.
Retail media (the second most commonly used phrase is commerce media) are advertising programs where brands and advertisers can buy ads on a retailer’s website, app or in physical stores. Apart from those touchpoints, offsite campaigns can also be run on social media platforms and on other publisher websites and apps through programmatic intermediaries.
Some of you that’s been in retail for some time might say “Hey, this is just a fancy new name for trade marketing”, but there are a couple of differences and today we’ll dive deeper into why retailer data is the key differentiator for a successful retail media program.
Trade marketing, where suppliers and retailers negotiate and agree on specific campaigns and promotions across a retailer’s touchpoints, has now been amplified with adtech platforms and programmatic and social partnerships to extend campaign reach and combine transactional, loyalty and demographic data throughout the advertising value chain.
The incredible growth of retail media as an advertising channel
Why is retail media growing more than any other advertising channel right now? For a couple of reasons, but the data available is one of the most important ones:
Correct – retail, ecommerce and financial services companies where we make daily, weekly or monthly purchases. Amazon’s ad revenue hasn’t skipped a beat during Covid, market recessions and Apple’s ATT (App Tracking Transparency) launch.?
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Types of retailer data
Retailers hold all types of valuable data for marketers and as omnichannel becomes a key part of retailer offerings, physical store data can now be merged with ecommerce and digital data points for the same customer online and offline.
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Some of the most common and valuable retailer and ecommerce data are:
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As you can see, 3 out of the 4 bullet points can also be leveraged and used by an ecommerce company without physical store presence. This is commonly called commerce media and is the same thing as retail media except for the physical store component.
Leveraging commerce and retailer data for setting up a retail media advertising program
(If you are a retailer or ecommerce company and want to monetize the commerce data you already have and start a retail media network)
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Leveraging retailer data for buying retail media across different ad networks
(If you are a supplier or advertiser wanting to buy ads on retail media networks)
Challenges and Considerations
Retail media has been so successful since it’s enabled by relevant first-party data and the brands buying ads are relevant advertisers on the retail media platform. If the available customer data is used for selling and showing relevant products and services then it will continue to be a fast-growing advertising channel. The key factor for retail media efficiency is relevant data.?
Let’s make sure data privacy and consumer integrity is respected and leveraged since that will guarantee a sustainable and long-term revenue opportunity for both sellers and buyers of retail media.