What is Retail Media? Retail Media, sometimes called Commerce Media, is a capability used by retailers, hospitality companies, and similar enterprises to enable brand advertising to be displayed on their websites, re-targeted to their customers on off-site platforms, and on digital out of home venues in physical stores, all as a means to increase revenue similar to how media companies drive revenue today. Why is Retail Media increasing in popularity? Two major trends have accelerated the interest in Retail Media – the “death of cookies” and the COVID-19 pandemic. Advertisers historically used third-party cookies to track prospects across the internet. However, privacy concerns and government regulations have combined to stifle the use of third-party cookies. Browser makers are responding with Apple’s Safari, Google’s Chrome, and Mozilla’s Firefox all phasing out support for third-party cookies. This change has forced advertisers to find new ways to track prospects. One popular technique is to use “First Party Data” in lieu of third-party cookies. Retailers and similar companies have a wealth of First Party Data that can be used in lieu of traditional cookies. This data, which represents a closer connection to real customers in the purchasing journey, is now being monetized by retailers that have learned to leverage First Party Data. The COVID pandemic caused shutdowns of physical venues but a dramatic increase in virtual shopping. Many transactions which would have been accomplished by in-store shopping were replaced by virtual shopping with delivery or curb-side pickup. For example, supermarket websites got little traffic pre-Covid. However, those sites became critical means to buy groceries during the pandemic. Each virtual shopping experience captured a wealth of First Party Data that now can be monetized. It is believed that these behavioral changes in shopping will continue long after the pandemic is over. Infinitive’s deep experience with global media companies and understanding of how they run their businesses to monetize their content, has enabled us to develop a guide for retailers, hospitality/travel companies and similar enterprises on the journey of how to ‘make money like a media company.’ We call this the “8-Ways Framework to make money with Retail Media.” 8 Ways to make money with Retail Media: 1. Sell access to First Party Data for analysis and activation. Retailers, hospitality/travel companies, and other similar enterprises can “lease” secure access to their First Party Data to companies seeking to use that data to advertise more effectively. For example, a supermarket could allow access to its First Party Data to enable better placement of advertising by cereal makers. To respect privacy and the protection of personal data, this “leasing” a retailer’s First Party Data is accomplished via the use of clean-room technology. This database-centric technology allows access to consumer data by third parties while masking data elements that are protected by various privacy laws. This is also accomplished without any data ever leaving the data owners’ IT environment. Retailers can also provide brands and third parties secure access to First Party Data (again using clean-room technology) for brands to do product and campaign specific analysis against the retailer’s customer data. Access to this Frist Party Data to run analysis and better targeted campaigns is value-add that retailers can now bring into the marketplace. 2. Off-site marketing. Companies have established Retail Media Networks (RMNs) that not only allow advertising on the retailer’s own web property but also allow advertising on other web properties. The same First Party Data is used for retargeting to these other websites. In essence, the retailer becomes something of an advertising agency on behalf of the brand advertiser and expanding the brand’s advertising campaign beyond only the retailer’s website. 3. Enhance experience and loyalty across customers and brands. First Party Data is leveraged for analytics capabilities and enhanced personalization in moving the retailer’s customers through the purchasing journey. This improves up-sell and cross-sell effectiveness of the retailer’s products and services and can also result in closed loop attribution reporting for brand partners. This closed loop attribution is valuable information to brand advertisers and results in significant increases in advertising revenue for those retail companies which can provide it. 4. eCommerce advertising, sponsored search, display, and video. Retail media providers typically have standard website functionality like searches. Just like Google, these retail media providers can auction keywords to advertisers seeking to get to the top of search results via a sponsored ad. Retailers can also include sponsored advertising via display and video ads on their eCommerce sites which increase brand recognition and brand purchases while customers are at the point of purchasing decisions. 5. Partnerships and bundles. The rise of Retail Media Networks and recent proliferation of turn-key clean room technology now allows companies to design more easily, and offer, bundled products, services, and advertising products across like-minded partners that want to provide end-to-end customer experiences. For example, a retailer that wants to sell specific sports equipment (e.g., pickleball court shoes and high-end pickleball paddles) may partner with other product and services organizations via clean rooms to sell a bundled “Pickleball Resort Getaway for two” package. By partnering with a travel agency, a resort that specializes in pickleball tournaments, a media platform that provides video training for beginners, and a high-end restaurant located close to the resort for a celebratory dinner, all aspects of the customer’s full experience in enjoying the sports equipment can now be connected. The retailer not only sells more of their products, but they also build loyalty and enjoyment with their customers, and memories that their customers want to share with their friends and family. 6. In-store and Out Of Home (OOH) digital advertising. More and more advertising is being done in the public display environment. From screens inside a physical store to screens at self-service gas pumps, the world of advertising is getting increasingly distributed. Retailers, malls, etc. increasingly have programmable displays that can be used, in conjunction with a retailer’s first party data to place ads in the physical world. The screens inside a retailer’s establishment (or a hotel room) are potential money-makers for companies offering Retail Media. Nearby screens (such as those at bus stops) could be addressable by the retailer through a Retail Media Network. Geo-targeting and location beacons are also being used to leverage the customer’s mobile phone in their hand as an additional screen for advertising and customer engagement while they are physically shopping. 7. Video & streaming storytelling. Video storytelling is a relatively new approach to retail eCommerce advertising that uses a more subtle approach to building affinity to the brand and getting attention for a product. The technique often provides a story that “hooks” the viewer early and holds their attention via a story seemingly unrelated to a product. At the end, the product is revealed. One example is a PlayStation ad. A retailer could be a great venue for such advertising with screens attached to physical shopping carts, in checkout lanes, at self-service gasoline pumps, on the customer’s mobile devices, and on the retailer’s eCommerce website. 8. Optimize influencer and affiliate sales campaigns. Affiliate marketing is a way for content creators to earn commissions by referring customers to brands. In turn, brands reach an expanded audience while only paying for real business results (not just exposure). This is known as a pay-for-outcome or cost-per-action model. The retailers can also expand brand campaigns to include engagement with influencers that the retailer is already partnering with. Brand sponsorship can be added to social campaigns with influencers and affiliates which not only increase retail sales but create brand engagement and sales. The retailer sells an expansion of the brand campaign into these additional social media marketing channels that they are already using. Infinitive has been a leader in First Party Data management and monetization. We fully understand the Retail Media space and can help companies get started or help a company already engaged in Retail Media expand their capabilities. Contact us today to discuss Retail Media and Retail Media Networks.