Retail Media's Comprehensive Strategy

Revolutionizing Retail Media Measurement: Unlocking RMN ROI with Data-Driven Approaches ROI is the primary metric for understanding media efficiency and investment allocation. However, the lack of accurate ROI measurement for Retail Media Networks (RMNs) leads to suboptimal decision-making. Key Challenges: • Outdated Attribution: Traditional Marketing Mix Models (MMMs) rely on broad assumptions, undervaluing RMN ROI. • Data Silos: Fragmented RMN data obscures the customer journey, complicating precise attribution and optimization. • Lack of Detail: Aggregated data misses the specific tactics and placements driving successful RMN campaigns. Solutions: • RMN-Optimized MMMs: Tailor MMM models to RMN data, including metrics like impressions and conversion rates for accurate performance assessment. • Unified Data Ecosystems: Integrate RMN data with other channels for a comprehensive view, enabling precise attribution and holistic optimization. • Granular Analysis: Dive deep into RMN campaigns, analyzing by product category, audience segment, and placement to maximize ROI. Way Forward: • Custom MMM Frameworks: Adaptable MMMs tailored to each RMN’s unique attributes. • Advanced Data Integration: Seamless integration of RMN and other marketing data for comprehensive performance insights. • AI-Powered Insights: Leverage AI to uncover hidden patterns and optimize campaigns for unprecedented efficiency and ROI. The future of retail media measurement lies in adopting RMN-centric, data-driven strategies. How are you adapting your MMM approaches to fully capture RMN impact? Share your insights! Think Blue Parag Shah Sri Rajagopalan #RetailMedia #MarketingMixModeling #DataDrivenMarketing #RetailAnalytics #MarketingInnovation Image by zarubin-leonid on Freepik

For the good part of the last 15 years in my role, observing the shifting tides of the CPG, especially in the grocery sector, has been paramount. We're all too familiar with the slim pickings of traditional grocery margins. And guess what could be the cavalry for the grocery business? Yes, retail media networks (RMN). RMNs are not just another revenue stream; they are the lifeblood of enhanced profitability that doesn't tread on the toes of existing spending. Let's take a moment to digest this: CMP reports that incorporating RMNs can yield a 4.3% revenue surge. I love that! And it's not just about the numbers; it's about strategically positioning oneself in a fierce market. Retail media networks significantly enhance the economic performance of grocery businesses. Customer Management Partners reports that these networks can shift the traditionally narrow margins in the grocery sector, boosting revenue by a substantial 4.3% and potentially doubling net profits. Consider the giants— Kroger, Target, Walmart, Tesco, Carrefour, Albert Heijn, Ahold Delhaize. Their early adoption of RMNs is a chess move that sets them leagues ahead of the game, dwarfing smaller chains and independent grocers in their wake. 💡 ++ Economic impact on grocery businesses ++ 📍Incremental high-margin revenue 📍Doubling net profits 📍Competitive advantage ++ So, what should #CPG brands be doing? ++ 1. CPG brands should harness the power of first-party data available through retail media networks to enhance targeting and personalization of their campaigns. 2. Advertisers should integrate their online and offline marketing efforts to provide a seamless consumer experience. Let's synchronize digital retail media campaigns with in-store promotions, for starters. It's not too late to capitalize on the ROPO effect (Research Online, Purchase Offline). 3. CPGs should build closer collaborations with retail partners to gain better positioning and visibility within their digital platforms. I'm talking about negotiating for premium ad placements, co-creating exclusive promotional content, and accessing deeper insights into customer shopping patterns, which can help tailor offerings and maximize the impact of retail media investments. 4. CPGs must also streamline internal teams (1-sales/commerce, 2-marketing/media, 3-brand/agency, 4-supply chain) to reduce duplication and increase efficiency in media buying and campaign management across different retail partners. Given the significant revenue boosts and profit increases attributed to retail media networks, should grocery businesses be concerned about potentially prioritizing advertising revenues over customer experience and product quality? #ecommert #ecommerce #retailmedia #digitalshelf #experience #revenue #growth #strategy

🔥 The real talk on retail media tech stacks 🔥 After building retail media from zero to 2.5% of GMV in 14 months (and making every mistake along the way), I'm sharing what actually matters. The brutal truth: - Your ad server will crash on Black Friday if you cheap out - Real-time bidding gives you 30 milliseconds to not screw up - The build vs buy decision will keep you awake at 3am What I wish someone told me: ✅ Start with what works, iterate fast ✅ Don't let perfect kill good enough ✅ AI is smarter than your manual bid optimisation (trust me, I tried) This isn't another "comprehensive guide" full of consultant speak. It's the real experiences from working with 50+ FMCG brands and watching retailers burn millions on the wrong tech choices. Key takeaway: Amazon took 6 years to see real growth. Walmart went in-house and crushed it. Your path depends on your reality, not best practices. Huge thanks to the retail media experts whose insights shaped this analysis: Kiri, Kaleena, Dunith, James, Augustin, Nitin, Jennifer, Kai, Maria, Daniel, Brett, and many others. Your research and case studies provided the foundation for this operational framework. #RetailMedia #AdTech #Ecommerce #DigitalTransformation #MarTech

RETAIL MEDIA PROBLEM & SOLUTION Report findings stress industry challenges, urging collaboration and streamlined processes for the channel's full potential. PROBLEM - Gap in value perception between retailers and brands. > 78% of brands find it challenging to justify increasing their investment in retail media. > 40% of brands work with fewer than three retail media networks > 42% work with four to six retail media networks SOLUTION - Simplifying the buying and selling process. > Key to growth lies in the ability to buy and execute retail media across multiple channels and tactics in a single location. > 47% of brands would allocate their budget to midsize retailers if they had the capability to buy and execute across multiple channels/tactics in a single location. > 70% of brands expressed a willingness to invest more in retail media if in-store tactics could be seamlessly combined with digital offerings within a single retail media platform. We're building Axonet [the C-store Retail Media Network] to solve these problems for convenience store operators and their CPG supplier partners. #retailmedia #shoppermarketing #conveniencestores #singleview Article URL in first comment.

Most retail media networks don’t add incremental value. Michael Shields, with whom I had the pleasure to have dinner at Andy Plesser´s #BeetBerks event, said it well in his latest piece: Too many RMNs are too small to justify their place on a media plan, and even when they do, it's far from clear that retail media spend growth drives retail sales growth. We agree.    The big opportunity for retail media isn’t just to monetize existing shopper attention. It’s to anticipate shopper intent.    That requires more than ad slots on a single retailer's site. It requires:  ·       A relationship with the advertiser, so you understand brand goals.  ·       A relationship with the merchant, so you can unlock the right inventory.  ·       A relationship with consumers to understand their behavior across retailers, purchases, categories, and moments in time.    This is what makes PayPal Ads so unique.    We sit across tens of millions of merchants and 400M+ consumers, with visibility into over 1 billion shopping moments each month.     Not just clicks. Transactions.  Not just on one site. Across the internet. That allows us to help advertisers predict demand and help merchants participate in it. Take our latest innovation, Storefront Ads, for example. Instead of pushing only a single product, we can feature the merchants that sell the products. That means better performance for the advertiser and value for the merchant, not one at the expense of the other. Moreover, the PayPal Ads approach is crafted for this emerging Era of the Empowered Shopper in which the path to purchase is accelerating. In an agentic era, consumers won't navigate to a bunch of individual retailers' sites. So, both advertisers and merchants need a way to anticipate shopper demand and meet them everywhere. That’s how commerce media becomes more than a tactic for retailers to juice margins. And that’s how we break out of the “RMN” box and build something much bigger.    Give it a read and let’s discuss!

𝗪𝗔𝗥𝗖: 𝗥𝗲𝘁𝗮𝗶𝗹 𝗠𝗲𝗱𝗶𝗮 𝗶𝘀 𝘁𝗵𝗲 𝗣𝗲𝗿𝗳𝗲𝗰𝘁 𝗜𝗻𝘁𝗲𝗿𝘀𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗕𝗿𝗮𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 My latest article on retail media was recently published in WARC. Link to the full article in the comments. Here's how they describe it: 𝘋𝘦𝘴𝘱𝘪𝘵𝘦 𝘪𝘵𝘴 𝘤𝘢𝘵𝘦𝘨𝘰𝘳𝘪𝘻𝘢𝘵𝘪𝘰𝘯 𝘢𝘴 𝘢 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘤𝘩𝘢𝘯𝘯𝘦𝘭, 𝘳𝘦𝘵𝘢𝘪𝘭 𝘮𝘦𝘥𝘪𝘢 𝘤𝘢𝘯 𝘣𝘦 𝘶𝘴𝘦𝘥 𝘵𝘰 𝘳𝘢𝘪𝘴𝘦 𝘣𝘳𝘢𝘯𝘥 𝘢𝘸𝘢𝘳𝘦𝘯𝘦𝘴𝘴. 𝘏𝘦𝘳𝘦, 𝘳𝘦𝘵𝘢𝘪𝘭 𝘦𝘹𝘱𝘦𝘳𝘵 𝘈𝘯𝘥𝘳𝘦𝘸 𝘓𝘪𝘱𝘴𝘮𝘢𝘯 𝘤𝘩𝘢𝘳𝘵𝘴 𝘩𝘰𝘸 𝘢𝘥 𝘧𝘰𝘳𝘮𝘢𝘵𝘴 𝘶𝘴𝘶𝘢𝘭𝘭𝘺 𝘴𝘦𝘦𝘯 𝘢𝘴 “𝘶𝘱𝘱𝘦𝘳-𝘧𝘶𝘯𝘯𝘦𝘭” 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘱𝘳𝘰𝘷𝘦𝘯 𝘵𝘰 𝘢𝘭𝘴𝘰 𝘥𝘳𝘪𝘷𝘦 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘪𝘯 𝘵𝘩𝘦 𝘤𝘰𝘯𝘵𝘦𝘹𝘵 𝘰𝘧 𝘳𝘦𝘵𝘢𝘪𝘭 𝘮𝘦𝘥𝘪𝘢. 𝘚𝘵𝘳𝘰𝘯𝘨 𝘤𝘳𝘦𝘢𝘵𝘪𝘷𝘦 𝘥𝘦𝘭𝘪𝘷𝘦𝘳𝘦𝘥 𝘤𝘭𝘰𝘴𝘦 𝘵𝘰 𝘵𝘩𝘦 𝘱𝘰𝘪𝘯𝘵 𝘰𝘧 𝘱𝘶𝘳𝘤𝘩𝘢𝘴𝘦 𝘭𝘪𝘬𝘦 𝘰𝘯 𝘦-𝘤𝘰𝘮𝘮𝘦𝘳𝘤𝘦 𝘸𝘦𝘣𝘴𝘪𝘵𝘦𝘴 𝘤𝘢𝘯 𝘣𝘦 𝘦𝘧𝘧𝘦𝘤𝘵𝘪𝘷𝘦 𝘢𝘵 𝘥𝘳𝘪𝘷𝘪𝘯𝘨 𝘣𝘳𝘢𝘯𝘥 𝘤𝘩𝘰𝘪𝘤𝘦. 𝘈𝘯𝘥 𝘪𝘯-𝘴𝘵𝘰𝘳𝘦 𝘢𝘶𝘥𝘪𝘦𝘯𝘤𝘦𝘴 𝘢𝘳𝘦 𝘫𝘶𝘴𝘵 𝘢𝘴 𝘳𝘦𝘴𝘱𝘰𝘯𝘴𝘪𝘷𝘦 𝘵𝘰 𝘣𝘳𝘢𝘯𝘥 𝘮𝘦𝘴𝘴𝘢𝘨𝘦𝘴 𝘢𝘴 𝘛𝘝 𝘢𝘶𝘥𝘪𝘦𝘯𝘤𝘦𝘴, 𝘣𝘶𝘵 𝘢𝘳𝘦 𝘮𝘶𝘤𝘩 𝘤𝘭𝘰𝘴𝘦𝘳 𝘵𝘰 𝘵𝘩𝘦 𝘱𝘰𝘪𝘯𝘵 𝘰𝘧 𝘱𝘶𝘳𝘤𝘩𝘢𝘴𝘦. This one explores why retail media, in many respects, is the holy grail for marketers as it perfectly combines branding and performance. All-too-often advertising gets classified into the branding vs. performance buckets. To that I’ve always said, “Why not both?” Well, retail media is proving that branding and performance not only have room for overlap, but in many cases it’s perfectly suited to accomplish both marketing objectives at the same time. (If only there were better ways to get national media and performance/shopper teams to work together!) In the article, I explore how this is true across on-site, off-site, and in-store #retailmedia. Key points include: 📊 On-site display and video ads deliver the highest ROAS (per data from McKinsey & Company, highlighted below) 📺 Retail media streaming TV brings measurability to “the least measurable medium” 🛒 In-store retail media ads deliver reach, quality, and performance Thank you Ann Marie Kerwin for including my perspective in WARC!

How can Retailers use the Flywheel Effect to transform Data into Decisions 📌 Embrace First-Party Data & Explore Retail Media Revenue Streams: Retailers should structure and leverage first-party data to unlock growth, including retail media. Creating state-of-the-art loyalty programs, personalized offers, and defining strategies for media products are key to this combined approach. 📌 Invest in AI for Loyalty Programs & Shift to Customer-Centric Personalization: By employing AI-driven loyalty programs and personalization, retailers can increase engagement and shift to a customer-centered approach. It's recommended to create omnichannel experiences, set up cross-functional teams, and focus on continual improvement. 📌 Balance Monetization with Privacy: While monetizing first-party data offers a new revenue stream, retailers must carefully balance this with privacy concerns. Offering insights that drive specific actions, rather than just selling the data, will maintain transparency and respect for consumer privacy. Great article from Boston Consulting Group (BCG) on “First-Party Data Is Retail’s Next Growth Engine” by Christina Mühlenbein, Finn Ruthenberg, and Julia Christina Hohmann-Altmeier. https://lnkd.in/eSPS5aQv