What Makes a Best-in-Class Retail Media Network
Digital advertising is in constant flux. Amidst this change, retail media networks (RMNs) stand out as a beacon for brands that are eager to shine and retailers eager to monetize. And with a staggering 73 percent of advertisers amping up their RMN investments, it's clear there's something special brewing.
So, what's the magic ingredient? It's all about first-party data.
With third-party cookies heading for the exit, retail media, powered by first-party data, steps into the limelight. Let's unravel how first-party data is revolutionizing RMNs and paving the way for new retail media ventures.
The Power of First-Party Data
Having immediate insights into customers' preferences and behaviors allows for precise targeting, accurate measurement, and smart attribution. Brands once relied on cookies and third-party data, however, their relevance is waning because it was often collected without consent.
Enter first-party data, which offers a transparent and direct approach, especially within RMNs.
Using this data, either directly or via a trusted RMN partner, brands can sharpen their advertising focus. This means delivering ads to consumers actively seeking products, both during their online shopping journey and beyond.
But there's a nuance. A retailer's first-party data must be streamlined across online and offline channels for optimal results. The emerging solution? Identity-focused customer data platforms (CDPs) and data clean rooms (DCRs). These tools convert raw data into actionable insights, ensuring successful integration across all partnerships.
It's not just about the retailer's data. Brands, whether endemic or not, possess invaluable insights, and they need to be systematically arranged for effective collaboration. For a symbiotic relationship, brands must also adopt both CDPs and DCRs to bring in their first-party data, to amplify the customer journey, boost revenue, and lead to more conversions.
CDPs: Elevating Audience Connections
In retail's competitive realm, discovering and engaging new audiences efficiently is crucial. Here, a robust CDP is your ace of spades. Through ID resolution, it merges various datasets, connecting them to unique customer identifiers like disparate email addresses.
A comprehensive customer profile is a treasure for both retailers and partnering brands. Brands can dissect this data to assess loyalty and engagement. With this intel, they can design tailored marketing campaigns, hitting the sweet spot for their audience. The outcome? Consumers receive relevant ads, while brands witness increased return on investment, loyalty and retention. But the magic happens when both retailers and brands operate on a unified customer data foundation.
Data Clean Rooms: A New Age of Data Collaboration
Imagine tapping into another brand's customer data without any privacy breaches. This is the power of DCRs. They ensure a safe environment to share first-party data, balancing transparency with privacy.
As the digital landscape evolves, brands and retailers will find themselves partnering with multiple DCRs. This, however, poses challenges in scale and security. Here, a robust CDP becomes instrumental because it aids in seamlessly handling various DCRs, ensuring data is not only scalable but also secure, streamlining collaborations and making data-driven decisions more efficiently. Incorporating insights from DCRs into your RMN strategy grants deeper comprehension of the customer journey.
Navigating the Future of RMNs
The horizon of marketing and advertising is painted with data. As the RMN sphere grows, standing out will be all about offering precise audience insights and innovative collaboration tools. The key? Stellar first-party data.
Both endemic and non-endemic brands must tidy up their data houses. Why? To mesh seamlessly with not just one, but the multitude of media and retail media platforms sprouting up. As market opportunities fragment, brands must command their insights for both in-depth analysis and nimble collaboration with partners.
Brands without first-party data might veer towards alternative marketing resources, potentially bypassing RMNs and, by extension, their revenue potential. Retailers, take heed. To sidestep this trap, gear up with tools like CDPs and DCRs.
Embrace these and brands can sustain their edge by providing them with insights that elevate their marketing endeavors. But remember, first-party data isn't just a component — it's the pulse of a thriving RMN ecosystem.
Matt Hallett is the head of product solutions at Amperity, a customer data platform.
As the head of product solutions at Amperity, Matt Hallett boasts over two decades of experience in the MarTech & AdTech spheres. Specializing in marketing automation, product management, data analytics, and business intelligence, Matt's expertise sets him apart. He's sculpted cutting-edge solutions for Fortune 500 companies, drawing on his rich history with notable ventures including Appature and IQVia/IMS Health.
More than just roles, Matt's entrepreneurial spirit has propelled him to the forefront of CRM, CDP, and customer data innovations. He's dedicated to harnessing first, second, and third-party data, transforming the way organizations enhance customer experiences and achieve stellar business results.