Retail media networks (RMNs) rank among the fastest-growing media channels. According to eMarketer, retail media spend is forecasted to account for more than a fifth of overall digital spending in 2025, and retail media spend will grow by 21.8%. For RMNs, the path to realizing this opportunity is marked by navigating through a series of critical stages, each with its own set of challenges and solutions.
Retail media strategies
Simply put, RMNs need to know who their customers are, where they are, and how to reach them to succeed.
But we know nothing is that simple. This blog post reviews the three pivotal stages of RMN success, offering a roadmap for networks aiming to optimize their operations and claim their share of the rapidly growing category.
Stage 1: Develop a data foundation
In a world where traditional tracking methods are fading, first-party data has become essential for targeted advertising. Retailers have a wealth of this valuable data due to their direct consumer relationships. The initial step in establishing an RMN is to organize and utilize this data effectively.
Steps to develop a data foundation:
- Organize data: Bring together fragmented shopper data, loyalty program information, and other customer data into a unified location. Clean and deduplicate this data to create consistent customer profiles.
- Enhance profiles: Gain insights into your customers and your brand’s customers so you can learn who your best, lapsed, and non-customers are. Append additional attributes to your shopper data, including media consumption habits, lifestyle preferences, demographic information, and more.
- Use identity graphs: Identity providers, like Experian, enable you to learn about the anonymous – and known – visitors on your platform and organize disparate customer data points into households. This will allow RMNs to connect addressable identifiers to the household, making it easier to reach customers across channels.
- Create audience segments: With a solid data foundation, RMNs can build audience segments beyond basic shopper data. These segments will make your data more attractive and actionable for media buyers.
For example, consider a retailer that knows its shoppers are primarily young professionals, but a CPG brand wants to target not only these shoppers but also young professionals who are parents. By partnering with an identity solution provider like Experian, the retailer can append additional data to identify and target the young parents within their existing customer base, enabling the CPG brand to reach both audience segments effectively.
“Retail media networks thrive on clean, accurate, and actionable data. Simply put, it’s crucial to know who your customers are, when they’re most engaged, and where to reach them to drive effective marketing strategies and maximize ROI.”
anne passon, sr. director, sales, retail
Stage 2: Become a publisher for optimal retail media growth
The next step for RMNs is to transition from building a data foundation to helping marketers reach their target audience, essentially becoming a publisher. This involves two main processes: organizing advertising inventory and connecting it to demand.
Steps to become a publisher:
- Audit and organize inventory: Conduct a thorough review of all existing ad spaces, including websites, apps, and in-store placements. Identify gaps and consider creating new advertising opportunities, such as website and app features, interactive digital experiences, or expanded in-store touchpoints.
- Connect inventory to demand: Integrate the organized inventory with platforms, allowing advertisers to access it easily. This often involves using supply-side platforms (SSPs) and demand-side platforms (DSPs).
Continuing with our example, the CPG brand can work with its DSP or SSP partners and easily access your ad inventory, and effectively target the young professional and young parent audience segments.
Stage 3: Scale inventory for retail media growth
As RMNs progress to the final stage of their success journey, they may face the challenge of limited inventory within their owned and operated (O&O) channels. To meet marketers’ expansive reach requirements and to continue to drive growth and profitability for their organizations, RMNs must expand their inventory beyond O&O.
Steps to scale inventory:
- Utilize data collaboration tools: Clean rooms allow secure merging and enrichment of data from various sources, creating richer audience profiles while maintaining privacy.
- Resolve identity and enhance addressability: Identity graphs help resolve known customer identifiers (e.g. emails) into addressable IDs (e.g. mobile IDs and connected TV IDs), which can be used to reach customers across all the platforms they consume media.
- Expand audience reach: Onboarders, like Experian, help extend data and audiences to programmatic destinations beyond a retailer’s O&O inventory. By mapping audiences to digital identifiers maintained by identity partners, RMNs can significantly widen their reach, meeting advertisers’ needs for engaging with broader and more diverse audience segments.
The CPG brand can now reach young professionals and young parents on the retailer’s platform and in all the other places where they consume media, like watching their favorite shows on connected TV (CTV) or browsing the web on their phones.
Measurement across stages for retail media growth
Measurement is crucial and must be conducted during and after a campaign to understand and validate performance. Here are two types of measurement to consider:
- Cross-device campaign measurement: Measure performance by connecting an ad exposure in one environment (e.g. CTV) to an action in another (e.g. mobile purchase). This holistic, cross-device approach requires a partner for identity resolution as it will ensure that the impact of a campaign is fully understood.
- Aggregate performance analysis: Understand performance in aggregate across several campaign studies. Receive independent third-party measurement validation that you can promote to advertisers to drive increased spend.
For our CPG brand, these measurement reports ensure that they can track the performance of their campaigns from the initial exposure on a CTV to the final purchase made on a mobile device, providing comprehensive insights and validation of their advertising strategy. The retailer can aggregate these studies and promote their network’s effectiveness to prospective advertisers.
Accelerate retail media growth with strategic partnerships
The journey through the stages of RMN success is riddled with deep technical challenges that are often beyond the institutional capabilities of non-media businesses. The intricacies of data management, audience insights, identity resolution, precise cross-device targeting, and measurement require specialized expertise and technologies that may not be readily available in-house.
RMNs stand to benefit from forging strategic partnerships with companies that possess not only the necessary technological tools but also a profound understanding of the media landscape. The steps outlined here will accelerate your growth and ensure you capitalize on the opportunity in front of you.
Connect with a member of our team to learn how we can support your journey toward RMN success.
Contact us to enhance your retail media strategies
Latest posts
The Tapad Graph Now Offered in Adobe Audience Manager, part of Adobe Analytics Cloud New York, NY — August 7, 2018 — Tapad, now part of Experian, is advancing personalization for the modern marketer, announced today that its proprietary Tapad Graph is now integrated with Adobe Audience Manager, part of Adobe Analytics Cloud, helping marketers expand their view of consumers and boost results through Tapad’s probabilistic solution. Tapad has been working closely with the Adobe Audience Manager team on this integration. With the Tapad Graph integration, customers based in the U.S. and Canada can use the Tapad Device Graph to expand the reach of audiences defined and activated in Adobe Audience Manager to extend first- and third-party data and deliver personalization across paid, earned and owned channels, publisher sites, programmatic, and more. Tapad worked closely with Adobe to develop the integration, allowing marketers to enable first-party data that has been previously tied to cookies and mobile. This offering has been beta-tested by leading organizations across retail, financial services, telecom providers, and more. “We're excited to publicly announce the solution our team has been closely designing over the past 12 months with Adobe,” said Chris Feo, SVP, Global Data Licensing and Strategic Partnerships at Tapad. “This solution will give marketers in the U.S. and Canada the ability to unlock increased value from Adobe Audience Manager through the power of the Tapad Graph and its ability to expand customer prospects.” Tapad has repeatedly proven its ability to provide marketers with a unified view of the customer across channels and screens. With the Tapad Graph, a global identity graph that currently supports more than 100 enterprise customers and 200 integration partners, marketers can extend their reach and customize messages based on user and household-level data. Contact us today
Marketers Can Now Harness The Tapad Graph In Concert With Twine’s Vetted, Verified TrueData™ Identity Graph. Los Angeles and New York – August 2, 2018 – Tapad, now part of Experian, is reinventing personalization for the modern marketer, today announced that it is partnering with mobile data leader Twine Data to bring Twine’s hundreds of millions of deterministic mobile identity connections to The Tapad Graph. Together, the two companies will create one of the largest portable identity graph & CRM onboarding services in the U.S., through the integration of Tapad’s best in class cross-device capability and Twine’s deterministic identity graph. "Twine is a respected player in the onboarding space", said Chris Feo, SVP of Global Data Licensing and Strategic Partnerships at Tapad. "Through Tapad and Twine’s partnership, our clients can now use their first-party CRM data to leverage the full power of The Tapad Graph — fueling a wide range of data-driven marketing use cases, including audience extension, attribution, and personalization." At the core of one-to-one marketing and true personalization is identity resolution. For marketers, the ability to accurately and safely connect customer activity across desktop/laptop, mobile, CTV, tablets, as well as CRM and offline touchpoints is ultimately what enables informed and personalized future conversations with each customer. Tapad is known for the precision, accuracy, and scale of their cross device connections, setting them up as an ideal partner for Twine’s TrueData deterministic identity graph. “We believe that by combining Tapad’s renowned cross-device connectivity and our deterministic identity graph, marketers will finally be able to seamlessly segment users based on digital and offline behaviors as well as easily distribute those audiences to both DMP and DSP environments for personalized messaging,” said Elliott Easterling, CEO of Twine Data. With this partnership, Tapad will build a client's cross-device graph off of identities onboarded by Twine from a client's offline CRM. The resulting identity graph can either be delivered directly to brands looking to host their own identity graph, or can be leveraged in a managed fashion for marketers looking for simple connectivity of their offline CRM audiences to their DSPs. To date, Twine & Tapad have seen full connectivity rates* for CRM segments from advertisers at between 259 percent and 322 percent at major DSPs. *Full Connectivity Rate is defined as {total unique desktop, laptop, and mobile devices active at DSP} / {unique CRM users in original audience post cleansing}. It represents the final match rate of the clean audience in CRM format to onboarded audience at a client’s DSP instance. This metric encompasses Twine’s onboarding & linkage validation and Tapad’s cross-device amplification. Contact us today About TapadTapad, Inc. is the marketing technology company reinventing personalization for the modern marketer through its identity-driven solutions. The company's signature Tapad Graph connects millions of consumers across billions of devices. The world's largest brands and most effective marketers entrust Tapad to provide an accurate, privacy-conscious and unified approach to connecting with consumers across screens. In 2018, Tapad introduced its Tapad Customer Data Platform (CDP), purpose-built to offer marketers a highly personalized and privacy-safe platform to convert first-, second- and third-party data into actionable, results-driven campaigns. Tapad is based in New York and has offices in Chicago, London, Oslo, Singapore and Tokyo. Tapad's numerous awards include: Forbes' Most Promising Companies, Deloitte's Technology Fast 500, Crain's Fast 50, TMCnet Tech Culture Award and Global Startup Award's "Startup Founder of the Year." Tapad was acquired by the Telenor Group in 2016. Telenor Group is one of the world's largest mobile operators across Scandinavia and Asia. About TwineTwine is a mobile data platform that believes true, honest, accurate data is the fuel that helps our partners grow their businesses efficiently and effectively; Twine’s TrueData is used by brands, agencies, and ad tech partners across the country and across the globe. Twine’s app publisher partners generate revenue while maintaining control over their data; their marketer partners get comprehensive, high quality mobile targeting and intelligence. To learn more about Twine, visit www.twinedata.com.
Marketers Using Centro’s DSP Basis Can Leverage Tapad’s Technology for Extended Cross-device Reach Chicago – May 15, 2018 – Centro, a provider of enterprise-class software for digital advertising, today announced that its Basis programmatic ad platform has licensed cross-device marketing technology from Tapad, a part of Experian, the company reinventing personalization for the modern marketer. Media professionals using Basis can now drive better performance by identifying a person across the different devices he or she uses, serving ads in the most optimum environment, then analyzing performance to see what ad worked best based on creative, device, location and time of day. Today’s digital media ecosystem is fragmented. People consume content on their multiple devices from multiple locations. According to digital analytics firm GlobalWebIndex, a typical consumer owns three digital devices and has seven digital ID’s active in the last 60 days. Advertising technology that treats every device as a single user would not be able to guide customers down the marketing funnel according to how users jump from one device to the next. Furthermore, they wouldn’t see when conversions occur on a device different from that in which the ad was first shown to the user. The Tapad Graph identifies the point of conversion across all screens – smartphones, tablets, home computers, and smart TVs – so that marketers can better gauge the efficiency and return on ad spend. “Our technology helps brands gain a deeper level of understanding of their customer, enabling marketers to better deliver services and products users want,” said Chris Feo, SVP of Global Data Licensing and Strategic Partnerships, Tapad. “With our technology as part of Basis, Centro is providing robust, accessible tools for marketers that want to advance their knowledge of the consumers they want to reach.” Centro’s Basis enables advertisers to plan, buy and analyze real-time bidding (RTB), direct, search and social campaigns in a single platform. It is the only platform that combines all of these elements with cross-device conversion attribution and advanced reporting features in a DSP. With the Tapad Graph integrated into Basis, marketers can now identify consumers across all of their devices during any point of the consumer journey. This can help marketers determine ad spend effectiveness for optimizing campaigns in real-time or for the future. Other cross-device marketing capabilities for Basis users include: Frequency Capping: Apply frequency caps at a unique person-level rather than at a device-level to prevent saturating users with ads and showing them more impressions than desired. Audience extension: Expand the reach of a campaign by learning what other devices a single user may have, then deliver ads to single users’ other devices. Reporting insights: Learn how users interact with ads across their devices. Gain insight about how consumers respond on devices to improve targeting parameters. Conversion attribution: Record conversions on devices different from that in which the ad was displayed to learn the true effectiveness of advertising efforts. “Cross-device analytics and optimization aligns with our vision that converging the different parts of digital media to create a holistic view of campaigns will drive performance,” said Katie Risch, EVP of customer experience, Centro. “Having Tapad’s powerful capability of personalized marketing gives our advertisers high-quality data to cultivate relationships with customers, wherever they are in digital channels.” About Tapad Tapad Inc. is the marketing technology company reinventing personalization for the modern marketer through its identity-driven solutions. The company's signature Tapad Graph connects millions of consumers across billions of devices. The world's largest brands and most effective marketers entrust Tapad to provide an accurate, privacy-conscious and unified approach to connecting with consumers across screens. In 2018, Tapad introduced its Tapad Customer Data Platform (CDP), purpose-built to offer marketers a highly personalized and privacy-safe platform to convert first and third-party data into actionable, results-driven campaigns. Tapad is based in New York and has offices in Chicago, London, Oslo, Singapore and Tokyo. Tapad's numerous awards include: Forbes' Most Promising Companies, Deloitte's Technology Fast 500, Crain's Fast 50, TMCnet Tech Culture Award and Global Startup Award's "Startup Founder of the Year." Tapad was acquired by the Telenor Group in 2016. Telenor Group is one of the world's largest mobile operators. About Centro Centro is a provider of enterprise-class software for digital advertising organizations. Its technology platform, Basis, is the first of its kind SaaS advertising solution unifying programmatic and direct media buying, along with workflow automation, cross-channel campaign planning, universal reporting and business intelligence. It boosts media, team and business performance by enabling advertisers to plan, buy and analyze real-time bidding (RTB), direct, search and social campaigns in a single platform. Headquartered in Chicago with