{"id":615285,"date":"2023-03-07T08:49:38","date_gmt":"2023-03-07T14:49:38","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/07\/retailers-have-become-premium-suppliers-of-ad-inventory\/"},"modified":"2023-03-07T08:49:38","modified_gmt":"2023-03-07T14:49:38","slug":"retailers-have-become-premium-suppliers-of-ad-inventory","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/07\/retailers-have-become-premium-suppliers-of-ad-inventory\/","title":{"rendered":"Retailers have become premium suppliers of ad inventory"},"content":{"rendered":"
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March 6, 2023\u00a0\u00a0\u2022\u00a0\u00a04 min read<\/span> \u00a0\u2022\u00a0 Sponsored by Experian Marketing Services<\/a><\/p>\n<\/div>\n

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Greg Koerner, vice president of vertical sales, Experian Marketing Services<\/strong><\/p>\n

Retail media is undergoing a significant transformation as first-party data collection and analysis develop. The biggest retailers in the U.S. \u2014 Target, Kroger, Lowe\u2019s, Best Buy, Walgreens, Dollar General, Albertsons and more \u2014 are investing heavily in advertising via retail media networks (RMNs) and other digital sources. Flush with valuable data and inspired by Amazon\u2019s recent success, these brands and direct-to-consumer digital natives like DoorDash and Instacart are finding online advertising to be a sizable revenue stream.\u00a0<\/p>\n

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Global retail media has grown by leaps and bounds and doesn\u2019t appear to be slowing down. Spend in this area is expected to account for 19.3%<\/a> of digital advertisers\u2019 allotments in 2023, almost double the share spent in 2019. Success stories abound: Retail ads have grown to account for 5% of Amazon\u2019s total revenue<\/a>, Walmart\u2019s digital ad business grew by 30%<\/a> in the last quarter of 2022 and Lowe\u2019s sales increased by 15.1% in the last six months.\u00a0<\/p>\n

The key to many of these retailers\u2019 advertising success is the effective collection and activation of first-party consumer data. Furthermore, many smaller businesses have begun dipping into retail media in the hopes of accelerating revenue growth.<\/p>\n

Retailers\u2019 data is reaching brands with first-party resources<\/strong><\/h2>\n

Taking a cue from the larger retailers, smaller brands have amassed an effective combination of resources \u2014 first-party data and direct sales capabilities \u2014 to place them on competitive footing with the largest incumbent publishers and ad networks.\u00a0<\/p>\n

Retailers\u2019 rich first-party data procured from audience sources has allowed them to become premium suppliers of ad inventory in a relatively short time. This inventory is often addressable and targetable based on high-intent signals from searches, shopping carts and other behaviors.<\/p>\n

Yet despite the success of the biggest retailers, not all brands in the space know how to extract value from first-party consumer data effectively. Many are scrambling to find solutions as they await the upcoming deprecation of third-party cookies. They\u2019re searching for ways to maintain an ongoing relationship with consumers while gathering valuable data that can be used to target audiences in the future.\u00a0<\/p>\n

Isolated networks are preventing retailers from successfully activating first-party data<\/strong><\/h2>\n

Retail brands are increasingly recognizing the value of first-party data, but many don\u2019t have an understanding of their customers beyond their RMNs. For example, they might know what a customer bought over the last two months (such as a specific brand or product), but they often don\u2019t have the demographic data that advertising teams require for further targeting and measurement.\u00a0<\/p>\n

These retailers\u2019 lack of knowledge about what happens outside of their RMNs and other properties poses a long-term risk of their networks becoming yet another walled garden for advertisers, shifting the burden of omnichannel measurement and attribution to their operations.<\/p>\n

To address these challenges, savvy retailers are making the most of RMNs by connecting them to other data sources, such as off-site partners or other media properties. This enables them to match their proprietary data to sources across the omnichannel environment, providing more actionable consumer insights.<\/p>\n

Retail brands are using data privacy and collaboration solutions to grow revenue<\/strong><\/h2>\n

Fortunately, many retailers understand the necessity of first-party data activation. They\u2019re developing new tactics to balance the need to safeguard their proprietary data while making it easier for advertisers to activate it as part of an omnichannel approach.\u00a0<\/p>\n

These brands are seeking ways to safeguard consumer data privacy while also connecting that data to other parties, whether it\u2019s matching first-party data, generating lookalike audiences or merging it with third-party segments. These tactics are helping them share high-quality data with ad partners while preventing data leaks and commoditization.<\/p>\n

Still, not all retail brands are prepared to adapt to these changes in data collection. For them, while this evolution has altered the retail media environment, there\u2019s still time to adjust campaigns and compete in a digital environment more reliant on first-party consumer data.\u00a0<\/p>\n

However, traditional retailers and brands new to the space won\u2019t become successful data and media companies overnight. They\u2019ll need innovative solutions to enhance their efforts in productizing, commercializing and securing valuable consumer data.\u00a0<\/p>\n

For instance, one of the most effective technologies brands are now using is the data clean room, which enables retailers to match the first-party information collected via their networks with shared, secure data sets. This is helping them connect their first-party data with a broader audience. And overall, procuring external solutions \u2014 whether innovative technologies or qualified partners \u2014 is assisting retail brands in developing effective first-party data strategies and enhancing their RMNs while productizing, commercializing and securing that data in the process.<\/p>\n

Sponsored by: Experian Marketing Services<\/p>\n<\/div>\n

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