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Ashley Royalty: Amplifying the Digital Shelf: Harnessing the Power of Retail Media Networks | SIC 2024
The document discusses the growth and mechanics of retail media networks, emphasizing their ability to leverage first-party data for targeted advertising near points-of-sale on retailer websites and apps. It highlights the increasing shift toward retail media ad spending compared to traditional advertising, with predictions for significant growth by 2028. Additionally, it addresses challenges such as inconsistencies in ad types, measurement difficulties, and the need for a cohesive marketing strategy that integrates various advertising efforts.
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Ashley Royalty: Amplifying the Digital Shelf: Harnessing the Power of Retail Media Networks | SIC 2024
- 1. Retail Media Networks Amplifyingthe Digital Shelf
- 2. The Basics Discovery onRetail Media Digital Commerce Challenges 1 2 3 4
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- 6. What is RetailMedia Directly measure retail sales to media dollars without 3P cookies Goldmine of 1st-party data Enable brands to reach shoppers with relevant ads near the digital point-of-sale on retailer websites & apps
- 7. Sponsored Products Virtual shelfspace across Search, Homepages + Category placements to reach consumers that are ready to buy On-site Display Reach consumers in all stages of the funnel with banners using ROS, behavior, contextual or keyword targeting Social Display OLV Off-site Digital Leverage 1P retailer data for targeting + measurement of offsite campaigns (direct / programmatic) Retail Media Channels
- 8. Lean into tentpolemoments to create branded landing pages for your campaign Leverage Retailerâs email database & cohort segments to drive consideration + purchase. Reach the consumer on the larger screens. (Direct / programmatic) Retail Media Channels Branded Content Email OOH/CTV
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- 10. 2 out of3 of online product searches start on retailer sites Source: Criteo Shopper Story, US, Share of searches starting on retail/brand websites and online marketplaces combined, July-August 2019, N=1013.
- 11. Growth in Retail MediaSearch Ad Spend Will Outpace Its Traditional Counterpart. Retail Media Search Ad Spending Growth Accelerates While Traditional Market Stalls % change in US retail media vs. traditional search ad spending, 2024-2028 Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones, tablets, and other internet-connected devices; includes contextual text links, paid inclusion, and paid listings; *includes digital advertising that appears on websites or apps that are primarily engaged in retail ecommerce or is bought through a retailerâs media network or DSP; includes ads purchased through retail media networks that may not appear on ecommerce sites or apps. Source: EMARKETER Forecast, March 2024
- 12. Make sure yourproducts are visible when shoppers search for terms important to your brand EXAMPLE Gain increased visibility on PDP pages for cross-sell and complimentary-sell opportunities Increase your visibility of your products across key category and browse pages Desktop, Mobile Web & App Desktop, Mobile Web & App Desktop & Mobile Web Sponsored Placements Category/Browse Pages Search Pages Product Detail Pages
- 13. Prove Campaign Effectiveness Robust reportingcloses the loop to truly understand the impact of your media with sales reporting at the product SKU-level Make your products visible to high intent & shoppers who are ready to purchase Activate your campaign quickly Set up and manage your campaigns in the easy-to- use platform, or use managed service Get your Product Ads live on retailers quickly. Target within 24-48 hours Set Up & Manage With Ease Immediately Impact Sales Sponsored Placements
- 14. 3 Elements ofSponsored Product Ads Choosing Your Network Bidding Methodology SPA use an auction based model + Walmart uses a 1st price bidding auction. The bid is based on the max you are willing to pay per click + Instacart uses a 2nd price bidding method + Criteo utilizes a hybrid of 1st + 2nd price No Creative Required Amplify organic listings
- 15. Measuring Success: BeyondROAS Incrementality +428% in incrementally test, US brand that ran sponsored product ads saw a +428% incremental return on investment. +160% EMEA brands that ran onsite display ads saw a 160% bump in sales per users. Hidden Loyalty Boosts +51% of brands around the world see improve shopper loyalty from their RM campaigns. On avg. Shoppers who make an attributed sale continue to buy from a brand 5X more within 6mos. Source: Criteo Retail Media Data, 2023-2024
- 16. Digital Commerce Be AddressableBe Actionable Be Accountable
- 17. 14% of total media spendingwill rise to nearly a quarter. Omnichannel Retail Media Will Account for Almost A Quarter of All US Media Ad Spending in 2028 Billions in US omnichannel retail media spending, % change, and % of total media ad spending, 2024-2028 Note: Digital advertising that appears on a retailerâs on-premise signage, either in-store or in the immediately adjacent exterior (e.g. parking lot), appears on websites or apps that are primarily engaged in retail ecommerce, or is bought through a retailerâs media network or demand-side platform (DSP) Source: EMARKETER Forecast, March 2024
- 18. Accessing the Inventory ProgrammaticSelf Service Direct with Retailers +
- 19. Access Walmart 1Pdata through Trade Desk API to create custom audience cohorts for the various PEMCO insurance services. Non-Endemic Brands Programmatic Approach in Action Cohorts to pursue: AUTO - Auto parts shopper HOME - Frequency grocery shoppers (family), home decor/furnishings Plan the right inventory to execute against + Offsite: OTT/Display + In Store OTT: Geo specific WA/OR
- 20. Regional retailers are makingmajor moves in the retail media network space. As Grocery Dive notes, citing Placer.aiâs data, the â10 most- visited chains together only comprise 42.6% of total grocery visit share for last year.â The big retail networks may not cover all the consumers that marketers should be reaching. Thatâs because the smartest regional retailers have been building something special, unique datasets that can offer unmatched insight into the behaviors and preferences of consumers across specific localities.
- 21. Trend 1: ROPO Researchonline, Purchase offline. Customers donât care about DTC / retailers; they choose convenience and loyalty programs. This means cross channel strategy + measurement are crucial for advertisers. 85% of consumers say that before making a purchase, they search online for promotions, discount codes, and offers. Disruptive Trends Trend 2: Closed Loop Measurement Retailers offering closed-loop campaigns off-retailer environments on the open web will close the funnel and tie together awareness & sales data. Trend 3: Gen-z Buying Power 58% of the Genz demo is considered young adult & not reliant to their parentâs wallets. Their buying habits stem from influencers & streaming -- an area where retailers are going to need to capitalize on (like walmart + amazon).
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- 23. Challenge Due to inconsistenciesin ad types and measurement, itâs difficult to compare retail media networks (RMNs). What This Means for Advertisers Advertisers need to do their own analysis or work with 3rd parties to understand how one campaign performs compared with another. On average, brands work with six RMNs in the span of a year, according to an August 2023 survey from Coresight Research. Lack of Standardization
- 24. Challenge Traditionally, lower-funnel andupper-funnel marketing efforts are managed by separate teams on the brand side. What This Means for Advertisers Brands need to look at budgets holistically to prevent redundant spend or missed marketing opportunities. What This Means for Retailers Retailers need to communicate the true value of retail media networks in order to unlock ad spend. Siloed Budgets
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Editor's Notes
- #1Â My intro - Iâm Ashley Royalty, GM of Add3SHOP. Add3SHOP is the ecommerce division within our agency, focusing solely on paid media for commerce clients. Todayâs session is going to focus on Retail media networks
- #2Â Iâm going to take you through the basics of retail media.
- #3Â We as markets are probably only used to seeing ads on social and search as the main channels -- however now we are seeing retail media boom.
- #4Â When Retail Media comes to mind - you might immediately think of the beast amazon. Not only from the amount of prime users but the inventory of products / convenience as a person, but the ad capabilities as a marketer. In Retail Media, just search alone, Amazon will account for $40 billion of the total $59 billion US retail media search ad spend market this year, per our forecast. During the pandemic, many consumers who were unfamiliar with ecommerce became adept at everything from ordering groceries from their phone to buying tools on home improvement retail sites to redesign their gardens. -- it shifted the buying mentality. After amazon released their earnings of ad revenue generated at nearly 40 billion and 4 billion for walmart - after that, seemed like everyone wanted to be a retail network.. https://www.insiderintelligence.com/content/retail-media-networks-like-amazon-boosting-search-ad-spend
- #5Â Not all are included here - but a good example of whoâs media networks you can leverage -- ranging from a wide variety of big box / mass and drug. A Merkle report stated that âevery 1-2 months a new retail media network is bornâ, so as marketers, we should be paying attention to the new inventory, integrations and capabilities. Besides Amazon - Walmart generated the most overall impressions at 11 billion, considerably outpacing its closest competitorâTargetâwhich delivered fewer than 7 billion in the quarter. (Q1 2024) Why retail media scaling? Advertisers trust it, its under under utilized, and a performance marketing tactic.
- #6 Generally speaking, retail media is advertising within retailer sites and apps â usually by brands that directly sell products with retailers, though this is not always the case. Retail media advertising can also come from non-endemic brands in verticals such as financial services or travelâones that are interested in retailer audiences but donât necessarily sell products on those retailersâ sites and apps. based on the measurement capabilitiesâŠ.RM can be Performance marketing: Ability to directly measure + attribute velocity & frequency of purchases with retailers closed loop measurement. RM is a goldmine. Retail is cookie less, leveraging the retailerâs own 1P data to be hyper relevant. These 1P audiences can be the bedrock that you build upon, coupled with the velocity & frequency of consumer shopping habits is when you finally can start attributing across the funnel. Think of CVS - they have 10+ years on avg of loyalty membership data -- theyâve been through a consumer's lifestages and can use that rich data to inform targeting.
- #7Â Between this slide and the next, iâll reference 6 notable RM inventory approaches. These will include SP, display (on and off), takeovers, Email and OOT. There are various ways to approach RM and two key parts I like to think through when building strategy for clients: 1) remain objective on which partners are going to deliver on the results, KPIs and goals. These objectives being sales obj (aka revenue targets) and brand obj. >When we think about Branding obj: RM can offer a unique measurement methodologies, better targeting than standard media buying. Extremely important for CPG to be able to have this additional data. > And for sales objectives, what retail site is going to get the best return and youâd ideally start with SP and onsite display. [next slide]
- #8Â 2) Secondly, For CPG and endemic brands --this is prime commercial real estate. The TVs in Bestbuy, Now the audio in walmart, Many brands consider this as table stakes for high impact shelf placements (digitally). You have to be here to win. Be mindful of how to buy these placements. There isnt a unified solution to RM - so Different retailers will have different offerings, including a managed service or self service approach.
- #9 if you are thinkingâŠhow can I take advantage of RM. The answer is SPA. Similar to a DTC strategy, where you focus on the bottom of funnel - SPA is the solution-
- #10Â Top of page presence is key to success in any category The first page of results accounts for ~90% of all units sold And the top 10 SKUs account for 25-30% of all revenue Those top spots MATER
- #11Â Key stat: Advertisers will increase their spend on US retail media search ads every year of our forecast period until 2028, when it will see its most growth at 23% YoY, according to our March 2024 forecast. Over the same time period, traditional search ad spending growth will decline, slowing to 0.9% in 2028. Beyond the chart: Googleâs rollout of AI Overviews, a feature that answers queries directly on the search engine results page, may drastically compromise clickthrough rates and, consequently, the traditional search ad industry. Although retailers are also experimenting with AI integrations in retail media search ads, they are likely to see less of a drop in clickthrough rates due to their closeness to the point of purchase.
- #12Â Think of sponsored product ads as a way of amplifying your organic retailer listings. For Target specifically (and similar to other retailers like boots / superdrug/ etc), there are currently 3 key placements for sponsored product ads. These units are pulling directly from the retailers listings -- requiring zero creative lift. Search will drive the largest inventory and can be looked at as similar SEM approaches. Different RMs have rules on conquesting competitor brand names -- but robust reporting can show performance at the KW level. Weird nuances: Instacart you cant exclude KWs (only lower bid) but you can include kws. Criteo kws are automatically added based on meta data in the PDP descriptions. Reaches high-intent shoppers in real-time, converting interest into sales Targets shoppers across their journey, including desktop and mobile Accurately ties efforts to sales across retailers and devices Analyzes performance to the SKU-level to guide winning strategies
- #13 The benefits of SPA come down to the ease of set up, actionable insights and campaign effectiveness. Depending on the client and their goals - this will dictate which RMNs you will activate. Most in the USA are self serviceâŠbut since RMs are still in their infancy, some european markets are managed services with mins. SPAs will have clear + transparent reporting. Opps to adjust attribution windows, sku level data and more to prove the sales impacts.
- #14Â 3 elements when setting up the strategy. Choose your network & understand what placements / capabilities are Pay close attention to the bidding methodology and remember, no creative is needed!
- #15Â ROAS is great - but the incrementality & loyalty benefits are what I care about.
- #16Â Beyond just the physical paid placements on retailer sites - retail media networks are allowing brands & advertisers to leverage a gold mine of additional opportunities. what RM is doing is being: Addresible: identify the right shopper with 1P retailer data, support Endemic & Non Endemic Actionable: Seamless connect shoppers to the point of sale by linking to retail.com, store locators or DTC. Accountable: Reporting + Measurement, tap into closed loop measurement
- #17Â How much should you be investing in RM vs your larger media mix? https://www.emarketer.com/content/retail-media-account-almost-quarter-of-all-us-media-ad-spend-2028?utm_source=newsletter&utm_medium=email&utm_campaign=cotd+6.21.2024&utm_id=cotd+6.21.2024&utm_content=cotd+6.21.2024
- #18Â Programmatic Self Service More flexibility Certifications & training deals with select retailers to access their data Roundel Walmart Kroger **TTD is leading the charge of the DSPs weâve encountered. Direct with Retailers: typically will require a commitment / minimum Longer lead times Holding on tight (dont love it)
- #20Â When building your media plans & strategy: Have an understanding of your retailer goals. It doesnt need to be soley the big players. as the top 10 on makeup about 43% of the grocery traffic. We are seeing regional retails offer the most valuable factors because they are audience we typically cant tap, Especially when you think of Dollar General for the rural shoppers or from a niche regional standpoint example: Hannaford / Wegmans https://www.grocerydive.com/news/regional-grocers-store-traffic-market-share-data/705694/
- #21Â Why does all of these disruptive moments of RM matter? Its important to take an omni channel approach ( between DTC + retail) Physical stores are going to continue accounting for a vast majority of retail sales, especially for grocers. Research online, Purchase offline (instore) Understanding the measurement opportunities around -- esp. if instore / footfall reports are available. And know where you customer is shopping 85% Criteo Shopper Survey, Global, Q4 2022 - Q1 2023, N=24,561
- #23Â #1. Lack of standardization (From Reporting to Management) Challenge: Due to inconsistencies in ad types and measurement, itâs difficult to compare retail media networks (RMNs). What this means for advertisers: Advertisers need to do their own analysis or work with third parties to understand how one campaign performs compared with another. But brands cannot test out every retailer: On average, brands work with six RMNs in the span of a year, according to an August 2023 survey from Coresight Research. Several groups, including the Interactive Advertising Bureau and Albertsons Media Collective, have proposed standardization guidelines, but widespread adoption is likely a ways away.
- #24Â Challenge: Itâs so common for lower-funnel and upper-funnel marketing efforts are managed by separate teams on the brand side. Retail media is moving up the marketing funnel, which means silos between brand and product marketing teams could prevent ad spend. What this means for advertisers Brands need to make sure marketers across the funnel are working with RMNs, and that they are looking at budgets holistically to prevent redundant spend or missed marketing opportunities. What this means for retailers Retailers need to communicate the true value of retail media networks in order to unlock ad spend. If brands view RMNs as strictly bottom-of-funnel channels, they wonât see those upper-funnel ad dollars.