Tuesday, January 18, 2022

Retail Media Platform’s Future Will Be Different From Walled Gardens, Says IRI’s Pellino – AdExchanger

The retail media craze has come into hyperdrive over the past year.

Due to the pandemic, the number of people ordering groceries online was skyrocketing for the first time, but that trend was already underway.

The multitude of retailers in the programmatic platform business meant they followed a playbook set forth by large walled gardens. What works for Amazon and Instagram and Google should work for us, right?

Well, not so fast. As retailer media networks mature, they are testing ways to depart from the walled garden approach, said Jennifer Pellin, EVP of global media for IRI, a retail advertising and analytics company that collects loyalty program sales data from retailers. collects.

For example, Walmart Connect, with a retail advertising platform at the forefront after Amazon, uses The Trade Desk as its technology, a partnership that could prove to be a milestone if other retailers follow suit. and allow external platforms to bid on their media using third parties. Id, Pellino said.

Attribution may also require an open approach. Brands can’t accept grading their homework to the retailer network, even though they ungratefully tolerate self-attribution from the likes of Google, Amazon, and Meta. To prevent self-attribution from taking hold in retail media, they are taking a stronger stance with retailers influencing them toward open measurement. Brands are now collecting more data of their own, and if retailers don’t let them use that hard-earned data on their networks, they’ll find someone else who will.

AdExchanger caught up with Pellino on the state of retail media in 2022.

Retail Media Platform's Future Will Be Different From Walled Gardens, Says IRI's Pellino - AdExchanger

AdExchanger: What do retailers need to do to get the most out of shopper marketing deals and achieve a more general digital and programmatic budget?

Jennifer Pellino: Retailer media programs need to evolve. They need to figure out a way for brands to tap into retail data to measure campaigns in a holistic, independent way. They can’t close themselves.

Some are in their infancy, and, to your point, they are still mostly stuck in the old ways of dealing with customers, where brands will provide a predetermined retail media budget or reinvest a certain percentage of sales.

But it’s not just retailers. Brands drive that change if they think more clearly about their food funnel, right? Marketers are thinking more about how they drive awareness and ideas.

However, the walled garden approach worked for social platforms, and seems like the model for most retail advertising platforms.

yes i know

retailers started with [approach] Because the big platforms make it seem like the only approach. But if they continue to go down that path, brands will work hard to replicate that model.

Brands are becoming more sought after within retail media events. Brands want to choose their ad formats and placements. They want to choose their audience targeting, and then generalize it against a nationally branded campaign.

Examples are already there. Walmart Connect began synergizing with The Trade Desk, and has a much wider opportunity to activate and scale campaigns alongside other media and platforms.

Why is this important to the brand?

This is important not only for campaign frequency controls, but also for brands understanding their customers over time.

If they have 200,000 to 500,000 customer records – essentially accounts in their CRM – they want to be able to add data to those records and understand customers over time. What are the demographics? How often do they buy your product and what else do they buy? What other types of media do they link to before buying?

Those are questions you can start answering with an open forum approach.

What can brands do to drive more data into their retail media campaigns?

Factors such as cost of production and transportation and cost of inflation have reduced the CPG margin. And with that said, CPGs will have to see where they can cut spending to help them meet top line and bottom line numbers.

So within these supply chain issues the advertising starts to play. Questions are now important about raising awareness of funnels and taking consumers to the shelf with the bottom funnel retail media campaign.

How do we incorporate supply-chain data that tells us we don’t have supplies? We can save this margin on advertising, but does it potentially lose the customer to someone else?

These are the big ideas that we’re seeing within CPGs across the board. And this is where I think there’s a balance between retailer media events, national branded campaign programs, and supply-chain data.

Retail media programs are heavily linked to the supply chain, as they target where specific inventory exists, and thus can be levers more directly linked to data and margin performance.

Will retailers sell their data to other advertising platforms for attribution?

I believe it is under consideration. For example, Kroger and Target’s Roundel have measurement deals with CTV Services. [Kroger has a partnership with Roku to attribute sales, as do Target and Disney.]

Not every retailer will have the same level of quality media programs, technology, and resources to invest in an advertising platform. But retailers that won’t become full-blown media network-type platforms still have valuable data. [Those] Retailers can push the data to where advertisers already buy media. There are privacy and regulation concerns slowing that option, but the technology and processes for it already exist.

This interview has been edited and abridged.

Nation World News Deskhttps://nationworldnews.com
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