In this article…
Retail media has been on everyone’s radar for a while. Commerce media has also established itself as a significant player in the AdTech industry over the past few years. While retail media focuses on engaging customers within a retailer’s ecosystem, commerce media goes beyond these boundaries to capture the entire shopping journey, spanning multiple touchpoints, channels, and platforms.
But what is commerce media, and why should we care?
Commerce media is here to stay
Estimated to hit $33.86 billion this year and more than double by 2028, the hunt is on to capture as much of retail media’s projected ad spend as possible. However, given the numerous verticals expanding their retail media strategy to include any touchpoint within the commerce channel, it might be time to lower the retail media flag and hoist the LUMA dubbed “commerce media flag.”
So why are Travel, Financial Services, and other verticals focusing on the commerce media ship?
- Authenticated and digital users (usually app-driven)
- Consented data that provides unique insight into the household’s or consumer’s intent/purchase behavior
- Emerging focus on advertising as an important revenue stream for the future
With all this “data” at their disposal — why is it not smooth sailing for commerce media to build an ad-supported business? What’s missing for them to acquire the lucrative billions efficiently and effectively?
Why retail media networks are important
Retail media networks (RMNs) are now a major tool for brands to connect with shoppers. These networks gather valuable data from customers who browse and shop on e-commerce sites and apps. What makes RMNs so powerful is that they allow brands to advertise directly to people who are already interested in buying, leading to more successful sales.
For marketers, RMNs offer a clear way to reach potential customers and ensure their advertising dollars are well spent. But as competition grows and consumer habits change, these networks must keep improving. To stay ahead, brands will have to find new ways to use RMNs effectively, linking them with other parts of the commerce media world to unlock even greater results.
Differences between building a loyalty program and developing ad products
Loyalty programs are the backbone of commerce media networks; however, creating a loyalty program is much different than building an advertising product. It requires commerce companies to bring on additional people, technology, and partners to execute flawlessly.
There are four areas to consider:
1. Organizing your data at scale
To successfully build an ad-supported business at scale, data must be organized to initiate action (targeting and/or measurement). However, this requires changes in company culture. Both the business and technology infrastructure must be updated. Additionally, commerce media companies must update their mindset around creating and selling products.
2. People
We have seen this story before, with large opportunities comes the requirement for new talent. Where are we seeing commerce media companies recruit from? AdTech and MarTech. Whether it’s engineers or data scientists, business development and partnership leads, or even your direct sales team, the poaching has begun. To build a successful business around advertising, experts are needed who can navigate the waters.
3. Partner vs. build
The Requests for Information (RFIs) and Requests for Proposals (RFPs) for any combination of agency, demand-side platform, supply-side platform, customer data platform, identity graph, clean room, and beyond are piling up. One trend is clear: commerce media companies are looking for collaborative partners to provide a true strategic partnership to take on the complexities of the transition away from retail media.
4. Identity will remain the keystone to success
All commerce media companies have some identity data that reveals a slice of their customers’ viewpoint. Yet, unlocking the broad view of these audiences is crucial to success. These companies need to use the “full pie” to see well-rounded profiles, gain the reach required to access them across many channels, and turn opportunities into revenue.
Advertisers can finally close the loop with commerce media networks
Commerce media companies with real-time transaction data enable advertisers to see true ROI on their ad spend when products move off the shelves. Measuring real product lift/sale touch points across multiple channels will put performance and measurement front and center. Programmatic was the promise of performance advertising. Well, commerce media may finally fulfill that vow, creating enough value for companies to make it a real competitor to social channels.
While retail media will always exist, the transition to commerce media has become increasingly popular and is here to stay. The journey might not be a straight shot to perfect results, but the data, partnerships, and resources are out there and ready to hop aboard to help guide commerce media companies to success.
The future of commerce media
Commerce media shows no signs of slowing down. More industries are seeing the benefit of making every customer touchpoint an opportunity to drive sales. Whether through social media shopping or in-app purchases, commerce media pushes businesses to create smoother, more connected shopping experiences for consumers.
In the future, brands won’t just compete on prices or products — they’ll stand out by offering simple, seamless shopping experiences across all devices. With better data and tools to track consumer behavior, brands will be able to personalize their ads and measure their success in real time. Commerce media allows brands to see a direct link between their ads and sales. Those who can adapt and keep up with these changes will come out on top.
Create a connected customer view with Experian
At Experian, we empower RMNs to unlock the full potential of their first-party data through comprehensive identity and audience solutions. Our data-driven capabilities enable RMNs to build a deeper understanding of their customers, optimize audience targeting across channels, and create enriched, actionable segments that drive measurable outcomes.
By seamlessly connecting our offline and digital data, we help RMNs organize identities into households, device IDs, and more. Each household is enriched with valuable marketing insights, allowing you to gain better customer understanding, create targeted advertising, and reach the right customers across different devices. Additionally, you’ll be able to measure the effectiveness of your advertising efforts.
With our support, RMNs can maximize revenue opportunities, extend reach, and confidently demonstrate the value of the network to advertisers.
Contact us today to find out how Experian can help you succeed in commerce media.
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It’s almost that time of the year again, the time to put away fourth of July merchandise and replace it with this year's favorite superhero backpacks. It’s almost back-to-school season, and parents and kids from kindergarten to college are preparing for school's "new normal." To navigate the challenge of 2021, Experian’s Marketing Analytics team is sharing Back-to-School shopping season insights with you. Download the eBook to learn more. Our outlook about this year's Back-to-School shopping season can help you better plan and improve your marketing effectiveness. The report covers who's actively shopping for school supplies, whether they're shopping in-person or online, and what they're buying this year. Here's a summary of what you'll learn in the report: Who (specifically) is shopping for back-to-school supplies this year? More than half of online searches related to Back-to-School were made by a small set of consumer segments. We’ve identified 4 Mosaic® groups as being in-market for back-to-school merchandise. To find these types of consumers, we used online behavioral data and filtered for households with school-age children between 5 and 15 years old. Each group, such as Flourishing Families, share similar shopping behaviors and needs. While each group of consumers has a need for Back-to-School merchandise, they have different circumstances that require more personalized marketing. Let's break down each Mosaic® group to better understand their size and key features so that you can build more personalized messaging. Contact us for segments and insights specific to your brand. Power Elite As you can see in our Mosaic® product brochure, Power Elite is categorized as Group A. This is the largest group analyzed in the report, accounting for 4.5 million U.S. households. Here are the Power Elite consumer types actively shopping for back-to-school merchandise this year: A01: American Royalty A03: Kids and Cabernet A04: Picture Perfect Families Key Features: Wealthy Highly Educated Politically conservative Purchase housewares and electronics in store Vacation and fitness retail influencers Luxury lease cars Flourishing Families Also called Group B in this report, Flourishing Families is comprised of 3.7 million U.S. households. Active consumer types: B07: Across the Ages B08: Babies and Bliss B09: Family Fun-tastic Key Features: Affluent Charitable contributors Athletic activities High-priced children’s clothing Home products & furnishings Sporting good Suburban Style Suburban Style, also Group D, is made up of 2.9 million U.S. households. Active consumer types: D15: Sport Utility Families D16: Settled in Suburbia Key Features: Comfortable lifestyle Ethnically diverse Politically diverse Instagrammers Children’s games Wholesale members Family Union The Family Union group, Group I, is the smallest of those analyzed in this report, but still a respectable size: 1.2 million U.S. households. Active consumer types: I31: Hard Working Values Key Features: Bilingual Married with kids Large households Hunting clothing Automotive tools Will they shop online or in stores? Prepare for a return to in-store shopping as the US moves post-pandemic. These consumers have shopped in-store for Back-to-School and have trended toward in-store shopping as the vaccine was distributed. Mobile location data shows these consumers actively shopped in-person during the 2019 Back-to-School season, and are shopping in-person again post-pandemic. Experian analyzed consumer mobile location data for big box retailers, department stores, malls and apparel-accessory stores since June 2019. The aggregated number of visits was indexed each month against 12-month average of that respective year. An index higher than 100 indicates shopping behavior that month was higher than the average of that year. An index less than 100 indicates shopping behavior that month was less than the average of that year. Planning store layouts and inventory will be more important this year for marketers as consumers return to the stores for Back-to-School shopping needs. What will they buy? Plan for Back-to-School product composition to be like pre-pandemic while you plan your inventory. Keep an eye on local outbreak risk which dictates whether school districts will pivot to remote learning. Product composition during the 2020 Back-to-School season was skewed away from apparel and towards virtual learning materials, such as home office supplies and technology, but should revert to pre-pandemic behaviors. Using ConsumerViewTM Transactional data, we compared consumer product composition during the 2019 and 2020 back-to-school shopping seasons. Children’s Apparel and Accessories: share was smaller in 2020, and was a more dramatic impact for Groups A, B, and D. Books: Groups B and D saw an increased share in 2020, but Groups A and I saw little change. Home Office: share was greater in 2020 for all groups, particularly Group A. Computers: share was greater in 2020 for all segments, particularly Group I Want to learn more? Improve your marketing ROI and grow your business during back-to-school season using Experian’s new Discovery Platform. No sign-up required: watch the demo to learn how retailers like you can use The Discovery Platform™ to track online versus in-store shopping and safely navigate evolving back-to-school consumer behaviors.
Third-party cookies have been a crucial component in people-based advertising and digital identity. With Google's recent announcement of delaying third-party cookie deprecation to 2024, the industry has more time to rethink how to effectively identify and communicate with consumers when the time comes. Preparing for cookie deprecation Solving for the post-cookie world is mission critical, particularly as consumer expectation for a relevant digital experience is heightened. We’ve seen a number of industry participants, including brands, publishers, data providers and technology platforms, work around the clock to find an alternative to third-party cookies—one that amasses the same scale and reach but also maintains consumer privacy. In fact, industry insights echo that sentiment. According to a white paper from Winterberry Group, Collaborative Data Solutions: The Evolution of Identity in a Privacy-First, Post-Cookie World, sponsored in part by Experian, one of the most frequently heard comments was the urgency for the industry to develop post-cookie, privacy compliant solutions that work in a more integrated manner. And if there was one overarching position regarding the research into the future of identity, it’s that collaboration is key. Participants in the white paper expressed that with the elimination of third-party cookies, there will be a surge in collaborative solutions across and within companies to accommodate changes in the digital marketplace. Collaborative data solutions must move beyond new post-cookie identity replacements and encompass more holistic approaches, including first-party data. First-party data sharing Currently, 64.3 percent of organizations in the US collaborate with other organizations to share first-party data for insights, activation, measurement or attribution, and 16.7 percent in the U.S. have plans to. Virtually all US companies surveyed were aware of the option to collaborate with other organizations and expressed openness to discussions around sharing first-party data. What is the solution to third-party cookie deprecation? The deprecation of third-party cookies is creating a shock in the marketing and advertising world because there has been an over-dependence on one type of identifier. Therefore, the solution to identify consumers across the digital ecosystem will not come from a single replacement for third-party cookies. Instead, it will rely on a combination of solutions, including collaborative data between organizations and implementation of proprietary first-party data strategies, as well as a framework that can connect all these touchpoints together. Experian can help you navigate the cookieless future Experian is focused on building a more effective advertising ecosystem that promotes the interoperability of digital touchpoints while enabling and fostering new innovations in a privacy forward way. Contact us today and get started with building connected identity in the ever-changing data landscape. To learn more, watch the recording of our webinar with The Vitamin Shoppe where we discuss identity and how you can drive more addressable audience strategies amidst diminishing data signals.
As today’s digital landscape gets more and more complicated there are more ways for brands to connect with users and drive purchases and more ways for ad tech to target and measure those touch points. As in-person shopping picks up steam due to the re-normalization of society post-COVID 19; the connection between digital ads and in-person purchases needs to be made once again. With the rise of Connected TV throughout the pandemic there are even more digital opportunities to target a user. But how do you make sure that those brand engagements are captured and correctly attributed to offline purchases and conversions? The answer lies in a holistic identity resolution strategy. Cross-device identity resolution with The Tapad Graph connects the identifiers and devices of individuals within a household to each other; enabling targeting, frequency capping, extension, segmentation and measurement or attribution between devices; including Connected TV and hashed (privacy-protected) email addresses along with Cookies, Mobile Ad Ids and IP Address. Brands can join their first-party data to The Tapad Graph to execute strategies that connect online and offline data for pre, mid and post-campaign efficiencies. Let’s imagine a scenario in which an outdoor retail brand is targeting users watching specific content on a Connected TV device. Powered by identity resolution, they start with a general ad on CTV and continue targeting down individual paths with each user. When one of them converts in store and makes a purchase; the outdoor retailer can connect that action through location and in-store traffic data with the cross-device identity resolution used to execute the digital campaign. Now the actions of the user online and offline are resolved for more accurate measurement and attribution after the campaign ends. But it doesn’t stop there– the brand's CRM data can be reactivated for the next digital campaign and leveraged to capitalize on the most effective media mix for the user who made the purchase previously. These combined insights can be invaluable in shaping up future campaign strategies with geo-contextual ads, recommended additional products and personalization to help drive more conversions and purchases in-store or online. As in-person shopping picks back up and marketers are tasked once again with balancing online and in-store KPIs, the right identity resolution strategy can unlock necessary efficiencies for retailers, ad tech vendors and agencies tasked with supporting these initiatives. Get started with The Tapad Graph For personalized consultation on the value and benefits of The Tapad Graph for your business, email Sales@tapad.com today!