HOW RETAIL MEDIA IS TRANSFORMING DIGITAL ADVERTISING
Retail Media represents the monetization of media inventory and retailer data for marketing activation, so that brands can engage audiences in deeper, more personalized ways throughout the consumer purchase funnel to optimize sales.
Although retail media accounted for just 9% of brands’ digital media investments in 2019, those investments will grow to 43% by 2023 and are expected to double in value to €100 billion by 2024. With growth like that, retail media has the potential to bring about industry-wide change.
Brands are investing heavily in retail media networks
Vincent Cailliot, Director of Data Consulting and Sidney Zeder, Senior Consulting Manager, both of Artefact, discuss retail media’s ecosystem of technology partners for brands and retailers. They also explore the opportunities for Consumer Packaged Goods (CPG) brands to address valuable use cases, beyond retail media.
:
- Retail Media investment is driven by regulatory and technological developments, especially the evolution of the availability of consumer data.
- The Retail Media ecosystem is rapidly evolving: brands need to identify which combination of technology partners best meets their needs.
- Retail Media allows brands to address marketing use cases from consumer insight generation to digital campaign activation and marketing performance measurement.
- While on Retailer side, data monetization offers unlock new revenue sources.
“82% of Consumer Packaged Goods (CPG) companies are already investing behind at least one retail media platform, with 85% planning on increasing spend in the next 12 months.”
You can also watch the video of Vincent Caillot’s Keynote here.
(For videos, you can enable subtitles in your language directly in YouTube – check settings)
“Data sharing by retailers: why do it and what are the benefits?”
Alexis Marcombe, Managing Director of CARREFOUR LINKS, explains why omnichannel data is the pivot point of the customer journey: it’s “where the magic happens” to reach clients as close as possible to the purchase act.
Carrefour Links is the 1st omnichannel retail media offer in Europe, with 5000 stores in France, 20% of market share and 75% coverage of the population. The company had already reached 100 bn. in media buying worldwide by 2022 and in Europe alone is projected to reach 25 bn. by 2026 – 25% of which will be digital investments.
Omnichannel data is at the heart of their retail media strategy – and their success:
Omnichannel, digitized couponing optimizes targeting capability for enhanced customer experience;
Onsite, offsite and instore, brand and retailer data collaboration increases customer touchpoints and accelerates growth;
Advanced data use cases deliver new customer insights for advanced analysis & segmentation, activation and measurement.
“From Data to action plan: how does amazon ads help you define and optimize your retail media strategy?”
Adrien Masson, Head of Ad Tech Sales, Southern Europe, Amazon Ads, discusses the growing importance of building a 360° view of consumers and creating meaningful connections for marketers to prove the value of their Return on Ad Spend (ROAS), saying that “59% of marketing leaders report increased pressure to prove the value of their investments”.
Amazon Ads is a suite of building blocks to drive marketing and business results, not just on Amazon, but across many channels. The key word is “efficiency”: Amazon Ads allows brands to mix Brand 1P data with Amazon signals not only to ensure more efficient ROAS, but to build more efficient audiences.
Amazon Ads helps advertisers personalize messages to audiences:
to drive business outcomes
to ease premium inventory access and purchase path transparency
to move from ROAS to Customer Lifetime Value & Incremental Sales.
How Artefact supports UNILEVER with Retail Media use cases to increase sales
UNILEVER’s consumer packaged goods (CPG) are distributed by different retailers, which means there’s little direct relationship between CPG brands and their clients. Yet consumer knowledge is key to optimizing media and promotional strategies.
This challenge was the perfect opportunity to take advantage of Retail Media, in the form of second-party data partnerships, where retailers make their data available to brands to enrich each other’s data assets in a mutually beneficial approach. The movement was initiated a decade ago by pure players such as Amazon and Alibaba, and traditional players such as Casino, Walmart and Carrefour gradually followed.
With Artefact, Unilever identified six ways to unlock the full potential of retail media:
“Retail Media is a win/win strategy for brands and retailers… It allows us to enrich consumer knowledge and accurately measure our activities on all channels, throughout the transformation tunnel.”
Sarah Baqa, Head of Performance Marketing at Unilever
Data collaboration: the new best friend for business?
Although companies face increasing restrictions on the collection and use of consumer data, the industry is responding with innovation and positive change through data sharing. The article explains how brands that once jealously guarded their data are now more willing to share it, as they see the potential for data collaboration to create valuable new marketing and trade opportunities.
Major benefits of data collaboration:
Organizations can profit from incremental sales, spending efficiency and advanced marketing insights.
Calculation of key KPIs is easier: customer lifetime value, marketing and trade ROI optimization, dynamic budget allocation.
Data security through “Clean rooms” ensures no party has access to the personally identifiable information (PII) of any other party’s customers.
Data monetization opportunities for retailers: Retail Media within the CPG/Retailer data ecosystem
This article examines the rise of retail media, highlighting its long presence on Amazon and rapid acceleration due to the Covid-19 pandemic. There are three types of retailer data monetization opportunities with CPG brands:
Inventory monetization: traditional sale of media inventory on proprietary assets. Can be offline inventory (coupons, promotions) or online inventory (e-commerce website to deliver personalized promotions to customers).
Data monetization: monetizing existing consumer data such as 1P loyalty program data across CPG brands. This data is shared “as-a-service” in a data clean room to ensure secure data sharing between partners. Access to this data can unlock three types of use cases for brands.
DATA CONSULTING | DATA & DIGITAL MARKETING | DIGITAL COMMERCE
