Hannah Rook. Credit: Magna
Despite strong intent to spend more on retail media, few marketers are tapping the full potential of purchase-based data outside of walled gardens.
While 98% of marketers plan to maintain or increase their investment in retail media networks (RMNs), just 9% are using purchase-based insights via demand-side platforms (DSPs), according to experts from Magna and The Trade Desk.
Hannah Rook, head of intelligence and insights at Magna, told AdNews many brands and CMOs have yet to fully grasp the potential of retail media data use outside of walled environments.
“With retail data being accessible in the programmatic market an advertiser can use this data outside of a retailer’s ecosystem with increased flexibility in how they execute on this purchase data,” she said.
Rook said the market currently favours the use of retail media data for lower-funnel tactics.
“This makes a lot of sense as purchase data and these high intent consumers excel at driving conversions,” she said.
“However, this rich first-party data held by retailers can be leveraged throughout the entire customer journey, from awareness to consideration and ultimately, purchase.”
James Bayes, VP ANZ at The Trade Desk, told AdNews marketers still have a narrow definition for retail media.
“One of the biggest misconceptions about retail media is that it starts and ends with onsite placements,” he said.
“The missed opportunity is in activating retail data offsite that involves activating purchase-based insights into the broader open internet through DSPs.
“This means reaching qualified shoppers where they spend most of their digital time from watching BVOD, to streaming music and reading news.”
A recent campaign by Australian food brand Yumi’s highlighted the potential.
Working with Coles 360 and The Trade Desk, Flybuys data was activated across BVOD and premium short-form video, delivering a 158% lift in sales and a 52% drop in cost per acquisition compared to a control group.
However, Bayes said, measurement still remains challenging.
“One of the biggest hurdles is access to data. Many brands can’t directly link sales to their ad spend because they lack first-party data,” he said.
“More anonymised, privacy-safe customer data is entering the ecosystem, giving brands access to high-quality second-party data.
“This data is helping brands measure impact more accurately.”
Bayes said 36% of marketers in Australia are already placing RMN ads offsite but Rook called for broader use of retail data.
“Retail data should be informing brand campaigns across the full journey, not just at the point of conversion,” she said.
Rook also cautioned against overstating social media’s reach.
“The dominance of social media may suggest the market is confusing retail media messaging with the use of retail data,” she said.
“I think it’s important to highlight the lack of purchase data driving much of this retail media spend in social, but the risk is not recognising the potential limitations of data signals currently in use in social.”
Rook said that when it comes to retail data, Australia is keeping pace with the US, despite being a much smaller market.
“While we may not have the scale of some global players, we're agile, adaptable and focused on responsible data practices,” she said.
Bayes agreed, saying he expects the 36% figure to grow sharply as retail data activation broadens.
“Offsite retail media is expanding rapidly in Australia,” he said.
In just the last year alone, The Trade Desk has doubled its retail marketplace across Australia and New Zealand.
“One of the biggest opportunities is taking retail data beyond the retailer’s own channels and using it to reach those same high-value shoppers wherever they are online,” Bayes said.
“By activating purchase insights through a DSP, brands can combine that data with premium environments like BVOD, streaming audio or trusted news sites and clearly measure the impact across the whole customer journey.”
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