Cannes Lions 2024 Series: Retail Media Everywhere
RAUS Global attended a session on Retail Media at the Microsoft Beach while in Cannes for the Lions 2024. Retail Media is one of many new frontiers for marketing procurement to understand and work with marketing stakeholders to drive value, efficiencies and competitive advantage.
Retail media is one of the fastest-growing sectors in the advertising industry, making it an essential area for marketing procurement professionals to understand. As the landscape continues to evolve, understanding retail media’s intricacies and future trends will be crucial for staying ahead in the competitive market. This article will delve into the current state of retail media, its integration into overall marketing strategies, and the future directions that marketing procurement professionals should anticipate.
The Current Landscape of Retail Media
Retail media involves advertising within a retailer’s ecosystem, including their website, app, and physical stores. It leverages first-party data to deliver targeted ads, which can significantly enhance the relevance and effectiveness of marketing campaigns. The rise of e-commerce and the decline of third-party cookies have propelled the growth of retail media, as brands seek more direct and data-driven ways to reach consumers.
Integration into Marketing Strategies
One of the most significant shifts in retail media is its integration into broader marketing strategies. Traditionally, retail media was seen as a separate channel, often siloed from other advertising efforts. However, industry leaders now recognize that retail media must be part of a holistic approach. As noted by the industry experts, simplification and integration are key. Retail media should not be treated as an isolated tactic but as an integral part of the overall strategy.
This integration involves educating teams across the board to understand retail media, rather than having specialized teams. By doing so, companies can ensure that their retail media efforts align with their broader marketing goals, creating a seamless and cohesive strategy.
The Importance of Simplification
The complexity of retail media can be daunting. With numerous networks and platforms, the landscape is highly fragmented, especially in regions like Europe. Simplifying these processes is crucial for maximizing the efficiency and effectiveness of retail media campaigns.
Technological advancements have played a significant role in this simplification. Investments in retail media technology have made it easier to manage and measure campaigns, though there is still work to be done. Standardization of measurement and reporting practices will be vital for the industry’s continued growth. Simplifying these processes allows for better collaboration between teams and more streamlined operations, ultimately leading to more effective marketing campaigns.
The Role of Connected TV (CTV) & Data Integration
Connected TV (CTV) represents one of the most exciting developments in retail media. As cord-cutters and cord-nevers outpace traditional pay-TV subscribers, CTV has become a cornerstone of many video strategies. CTV offers the ability to integrate retail media data, providing a comprehensive view of consumer behavior and enabling more precise targeting.
The integration of retail media with CTV allows for better storytelling and more engaging customer experiences. By leveraging data from both online and offline sources, brands can create more personalized and relevant ads, driving higher engagement and conversion rates.
Moreover, retail media’s expansion into CTV highlights the importance of bringing retail intelligence to all channels. This approach moves away from viewing retail media as a mere transactional tool and towards using it for broader brand-building efforts. As retail media continues to grow, the ability to integrate data across various channels will become increasingly important.
Future Trends and Innovations
Looking ahead, several key trends are poised to shape the future of retail media. These include the rise of shoppable TV, advancements in data cleanrooms, and the increased importance of non-endemic brands.
Shoppable TV
Shoppable TV is a significant innovation, allowing viewers to purchase products directly from their screens. Integrations with platforms like Walmart and Shopify enable consumers to see an ad, push an offer to their phone or email, and complete a purchase seamlessly. This interactivity transforms the TV viewing experience, blending entertainment and commerce in new and exciting ways.
Data Cleanrooms
Data cleanrooms are secure environments where multiple parties can share and analyze data without compromising privacy. They are becoming a critical tool for retail media, allowing for more effective data collaboration between retailers and brands. By using cleanrooms, companies can gain deeper insights into consumer behavior while ensuring data privacy and security.
Non-Endemic Brands
Traditionally, retail media has been dominated by endemic brands — those that sell products directly through the retailer’s platform. However, non-endemic brands, such as automotive and pharmaceutical companies, are increasingly recognizing the value of retail media. By leveraging retail data, these brands can gain valuable insights into consumer behavior and create more targeted and effective campaigns.
Governance and Transparency
In today's dynamic marketing landscape, the governance and control of retail media and other agency partnerships are crucial for ensuring sustained success. Effective governance establishes clear frameworks and guidelines that guide how brands engage with retail media platforms and marketing agencies. It ensures alignment with strategic objectives, maintains brand integrity, and optimizes resource allocation.
Centralized governance frameworks enable brands to maintain control over their messaging and brand image across diverse retail channels and agency partnerships. By establishing standardized processes and performance metrics, brands can evaluate the effectiveness of their marketing investments and optimize them for maximum impact.
Moreover, governance fosters transparency and accountability, essential for building trust between brands, retailers, and agencies. Clear communication channels and defined roles mitigate risks and conflicts, ensuring that all stakeholders are aligned towards achieving common goals.
In the rapidly evolving digital ecosystem, where consumer behavior and technology are constantly evolving, robust governance ensures agility and adaptability. It allows brands to capitalize on emerging opportunities while mitigating potential risks associated with compliance, data privacy, and ethical considerations.
Ultimately, prioritizing governance and control in retail media and agency relationships is not just about managing risks; it's about positioning brands for sustainable growth, fostering innovation, and enhancing customer experience in an increasingly competitive marketplace.
Challenges and Opportunities
Despite the promising future, retail media faces several challenges. Fragmentation and lack of standardization remain significant hurdles. Additionally, the rapid pace of technological change requires constant adaptation and learning.
However, these challenges also present opportunities. By fostering collaboration between brands, retailers, and technology providers, the industry can develop more unified standards and best practices. This collaboration will be crucial for addressing fragmentation and ensuring that retail media continues to grow and evolve.
Marketing procurement professionals play a vital role in navigating these challenges and leveraging the opportunities presented by retail media. By staying informed about the latest trends and advancements, they can ensure that their organizations are well-positioned to capitalize on the potential of retail media. Since it is such a high priority marketing channel for almost all brands, the Association of National Advertisers (ANA), ISBA, World Federation of Advertisers (WFA) and other industry associations have made significant resources available to their members to learn more and be part of shaping the industry going forward.
Conclusion
Retail media is transforming the advertising landscape, offering new opportunities for targeted and effective marketing. For marketing procurement professionals, understanding this rapidly evolving field is essential. By integrating retail media into broader marketing strategies, simplifying processes, and leveraging technological advancements, companies can unlock the full potential of retail media.
The future of retail media is bright, with innovations like shoppable TV and data cleanrooms leading the way. By staying ahead of these trends and fostering collaboration, marketing procurement professionals can ensure that their organizations remain competitive in the ever-changing world of retail media. Embracing these changes and continuously learning will be key to success in this dynamic and exciting field.
