Tune in to Time for A Reset
In this episode of Time For a Reset: The Marketing Podcast with Global Brand Leaders, host Paul Frampton connects with several industry experts at the MAD//Fest 2024 in London, including Dean Harris, Ollie Shayer, Carl Carter, and Jill Orr, to discuss the hot topic of retail media. Join them as they discuss the rising interest in retail media and the driving factors behind this growth. Learn about the importance of high-margin revenue for retailers and the significance of understanding buyer behaviour. Discover how retail media can target precise audiences, measure and reassure advertisers, and improve consumer understanding.
Carl Carter, SVP of Media & Analytics at Circana
Factors Driving Retail Media Growth
Carl discusses the impact of cookie deprecation and privacy changes on the advertising industry. Advertisers now seek new data sources for precise targeting and audience understanding, leading them to retailers with rich consumer data and high-quality inventory. This combination creates a “perfect storm” in the industry. Retailers, recognising the opportunity for high-margin revenue, are eager to monetise their data. The competitive nature of the UK market further drives this trend, which has a spin-off benefit for companies in the ad tech industry.
“I think retail media has become a hot topic for several reasons. One is, obviously, the deprecation of cookies and the privacy changes. So, advertisers are looking for new data sources, and retailers have incredibly rich consumer data. They have a great inventory. So, it’s a perfect storm. It’s a great opportunity for retailers to monetise their assets, but it’s a great opportunity for advertisers to reach audiences in a much more targeted way. And I think that’s why it’s become such a hot topic.” Carl Carter
Carl also emphasises the importance of high-margin revenue for retailers and the opportunities it presents for retailers and advertisers.
Dean Harris, Retail Media Leader at Co-Op Media Network
Coping with the Slow Pace of Retail Media Adoption at FMCG Brands
Dean explains that the retail media model for supermarkets doesn’t work for their business, emphasising the need to communicate that convenience is different. Brands must unlock value differently, using unique signals relevant to their proposition, such as targeting consumers based on specific events like watching football. While advertising communications can be launched quickly, aligning products with these strategies takes time. Despite being lower in market share as a grocer, they aim to attract media plans through sophisticated and differentiated approaches focused on customer needs.
In addition, Dean mentions that their growth comes from performance marketing channels, with brands shifting their spending from search and social to retail media. He highlights the importance of being additive to retailers’ core business and the need to support them in making informed choices that align with their retail proposition.
“We see our growth coming from performance marketing channels. So, brands are shifting spend from search and social media to retail media. And I think that’s because we’re additive to their core business. We’re supporting them in making informed choices that align with their retail proposition. So, it’s about understanding their business objectives and what their customers want, and then helping them achieve that through digital media.” Dean Harris
Jill Orr, Managing Director of Enterprise EMEA at Criteo
What Would You Reset in Retail Media?
Jill advocates discarding the traditional marketing funnel and using an inverted funnel approach. This method starts with a detailed understanding of product-specific data (e.g., purchase frequency, associated items, price points) to gain insights into consumer behaviour. Instead of broadly targeting audiences and guiding them to purchase, the strategy begins with the product and its buyers, then layers on marketing activities based on this rich understanding. This approach emphasises understanding buyer rhythms and customer engagement with the product for more effective marketing.
“I think the traditional funnel approach should be reversed. We need to start by understanding the product and its buyer behaviour, and then we can inform the marketing strategies based on that. So, rather than pushing people through the funnel, we need to start by understanding the product and its engagement with consumers and then build the marketing activities around that.” Jill Orr
Jill also discusses the significance of understanding product buyer behaviour and using that information to inform marketing strategies.
Ollie Shayer, Omni Media Director at Boots UK
How to Improve Retail Media Attribution and Measurement
Ollie Shayer discusses the shift in marketing focus from short-term, lower-funnel conversion opportunities to long-term, cumulative effects. They emphasise the importance of considering the duration over which advertising impacts are observed, especially for products used over extended periods. The industry is moving towards a more sophisticated approach, incorporating diverse data sets and evolving measurement techniques. Combining retailer data with traditional metrics, like linear TV effectiveness, will enhance understanding and optimise marketing efforts. The emphasis is on long-term, omnichannel strategies and continuous refinement.“I think measurement is a really interesting topic. I think we’ve been stuck in this world of looking for instantaneous effects from advertising, but we need to think about the longer-term and cumulative impact. So, as an industry, we need to move away from immediate metrics and immediate effects and think about the longer-term brand building and the long-term impact that advertising can have.” Ollie Shayer
You can read the full transcript episode here.
