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The Emergence of Retail Media

Retail media is on the rise. Future success will require a diversified strategy including a presence in emerging marketplaces beyond just Amazon. Join this session to learn about industry insights, marketplaces data, consumer trends, and why retail media is a must for your 2021 plan.

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The Emergence of Retail Media

  1. 1. 2021 Amazon & Retail Media Virtual Summit 2021 Amazon Advertising Strategies 10:00 – 10:45am PST | 1:00 – 1:45pm EST Unpacking Amazon’s A9 Algorithm 10:50 – 11:20am PST | 1:50 – 2:20pm EST Amazon Creative that Converts 11:25 – 11:55pm PST | 2:25 – 2:55pm EST Advanced Amazon Operations 12:00 – 12:30pm PST | 2:00 – 2:30pm EST The Emergence of Retail Media 10:00 – 10:45am PST | 1:00 – 1:45pm EST What’s Next in Walmart 10:50 – 11:20am PST | 1:50 – 2:20pm EST Win Big on Instacart 11:25 – 11:55pm PST | 2:25 – 2:55pm EST DAY 1 - WEDNESDAY, FEBRUARY 24TH DAY 2 - THURSDAY, FEBRUARY 25TH
  2. 2. The Emergence of Retail Media The Here, Now & Future of Retail Media: Your New Big Opportunity
  3. 3. Today’s Logistics Analicia Santaella Partner Marketing Manager Recording & slides will be sent by end of week 01 Submit questions for live Q&A 04 03 Download relevant resources Log back anytime with same link 02 02 Join our poll questions 05
  4. 4. Some of our clients Our Recognition Tinuiti is the largest independent performance marketing agency across the triopoly.
  5. 5. Our Speakers ANDY TAYLOR Director of Research JEFF COLEMAN Group VP, Marketplace Channels
  6. 6. Agenda layout ● Reviewing the major channels of Retail Media ● Unpacking Amazon data & maturation ● Predictions for the future of retail media ● Similarities & differences among retail media channels such as ROI & advertising ● Live Q&A 6
  7. 7. Poll Question What retail media platforms are you planning to expand onto this year? ● Walmart ● Target ● Instacart ● Kroger ● Other
  8. 8. Reviewing the major channels of Retail Media 8
  9. 9. Winter 2020 Rite Aid Performance Media (Quotient) Walgreens Advertising Group (WAG) Ulta Digital Marketing Partnership Program (DMPP) 9 Timeline: 2019 - 2020 Summer 2019 Roundel by Target is re-imagined. Home Depot pilots PromoteIQ for sponsored products. Winter 2019 Kroger announces PromoteIQ for sponsored products. Walmart Sponsored Products self service officially launches. Target cracks top 10 for eCommerce. Summer 2020 Instacart self service featured products launch. CMX (CVS) Media Exchange launches. 2018: Criteo Retail Media Division
  10. 10. Target re-launches Roundel Retail Media Has Been Busy Roundel HD pilots PromoteIQ by Microsoft for sponsored products Home Depot Joins Home Depot in piloting PromoteIQ Kroger Self-service Sponsored Products launches Walmart Launches self service featured products Instacart Cracks top 10 for ecommerce Target CVS launches CVS Media Exchange (CMX) CVS + CMX Launches Performance Media w/ Quotient Rite Aid Walmart launches Connect, & partnership with Trade Desk to power DSP Walmart Connect + TTD Walgreens Advertising Group (WAG) Walgreens Digital Marketing Partnership Program (DMPP) Ulta Accelerates US expansion w/ retailers like Macy’s Citrus Ad 10
  11. 11. Criteo HookLogic 2016 acquisition 11 Key Retail Partnerships & Acquisitions Walmart Instacart In 3 test cities The Trade Desk will now power Walmart’s DSP Target Ulta in store partnership Shipt 2017 acquisition PromoteIQ Microsoft 2019 acquired by Kroger & Home Depot are now key retail partners Other CitrusAd self service featured products launch
  12. 12. 12 Walmart Advertising Pro: Walmart Connect will connect Search, Display (powered by The Trade Desk), and In-Store advertising to performance both online & in-store. Partnership w/ TTD & tie-in to in-store data could make WMC a serious competitor to Amazon for brand ad dollars. Caution: Grocery and .com are still separate hallways in App and online. Internal alignment for omnichannel continues to be a challenge. +460% App Downloads 4,800 Stores 50K+ 3P Marketplace Sellers +97% Y/Y eComm Sales
  13. 13. 13 Target Advertising Pro: Always on option with Criteo Sponsored Products. Roundel Display has a lot of variety in targeting options of Target guest data. Very clear brand and demographic consumers. Circle coupon, programmatic options - self serve and managed. Caution: Lower competition onsite for sponsored products may mean paying for clicks you would have already gotten. Array of options can be paralyzing at first. +734% Drive Up Sales 1,868 Stores 10M New Guests in H1 2020 +195% Q2 Y/Y eComm Sales
  14. 14. 14 Instacart Advertising Pro: Retailer additions of 7-11 and Sephora building out beyond grocery. Testing with Walmart in 3 cities today. Competitive CPCs, (relatively) low competition, and quick pace of development of their ad platform leading to significant growth. Customer convenience will persist beyond pandemic. Caution: Huge hiring (300k+) spree. Self service (featured product) advertising launched April 2020 - lots of volume & improving quickly, but still a new product < 1 year old. +218% App Downloads 25K Stores 5,500 Cities in NA 18.5 Product Searches by Order
  15. 15. 15 Kroger Advertising Pro: Featured products & banners with PromoteIQ, dedicated team there and at KPM 8451. Advertising only displays when a user is signed in for a more relevant experience for the user. Always on (featured products) option and display/flight based campaigns. Caution: Currently in year 2 of a 3 year plan, more change is coming. Launch of marketplace powered by Mirakl at the end of 2020. 96% Captured by Loyalty Cards 2,800 Stores 85% Unbranded Searches +127% Q2 Y/Y eComm Sales
  16. 16. 16 Criteo Retail Media Pro: One platform, multiple retailers available to scale in either retailer specific or run of network options. Bid modifier options based on consumer behavior (like in market) built in. Caution: Not all retailers have their own instance yet and are run of network only today. Competition from Citrus Ad (Macy’s recently jumped ship) will be interesting to watch in ‘21 & ‘22. 100 Retailers Globally 44 Retailers in NA +300M Incremental Revenue for Retail Partners 65M Products Sold via Ads in 2019
  17. 17. Side-By-Side
  18. 18. 18 How I Evaluate Current Opportunity Any directionally early proof points Honesty in maturity of the offering % of eCommerce growth in last three years API/Tech sophistication or partner (for scalability) Retailer relationship/important to the brand Future Opportunity Strength of 1st party data today Data collection methodology and planned availability Total retailer revenue, number of store locations, geographic distribution Recent acquisitions or partnerships Viability External factors like workforce, IPOs, funding New customer acquisition plan Realistic timelines on roadmap or initiatives and commitment to Leadership and points of contact
  19. 19. 19 Brand Presence in the One to Many (and the budget to match) The importance of D2C: Still very much a part of the playbook, especially given how budgets for these new channels may be funded. The fundamentals are still the same, the game just has more players.
  20. 20. Elizabeth Marsten Senior Director, Strategic Marketplace Services Retail media isn’t having a moment, it’s having the moment.
  21. 21. Amazon has Charted a Path 76% 21 Amazon Share of Ecommerce Ad Revenue What kinds of similarities and differences between Amazon and emerging platforms can advertisers expect as these new platforms grow?
  22. 22. Mirror 1: Off-site Targeting Will Grow in Importance 22
  23. 23. Mirror 1: Off-site Targeting Will Grow in Importance
  24. 24. Mirror 1: Off-site Targeting Will Grow in Importance Amazon DSP spend has soared over the last two years, and in Q4 2020 W/W growth was the strongest of the last seven quarters
  25. 25. Mirror 1: Off-site Targeting Will Grow in Importance Sponsored Display campaign adoption is also rapidly growing, providing advertisers with an easy self-service way to target shoppers off of Amazon
  26. 26. Mirror 1: Off-site Targeting Will Grow in Importance Amazon properties are a big part of what makes its display advertising sing, but don’t let KPI comparisons dissuade you from going offsite.
  27. 27. Mirror 2: Campaign Optimization Tools Will Improve 27
  28. 28. Mirror 2: Campaign Optimization Tools will Improve Ad format evolution, such as the widespread rollout of SBV, can help to drive performance up and give advertisers more to work with in messaging consumers.
  29. 29. Mirror 2: Campaign Optimization Tools will Improve More refined targeting techniques help advertisers segment and optimize in ways that help them increase ad investment. It takes time for platforms to evolve in making key optimizations available.
  30. 30. Mirror 2: Campaign Optimization Tools will Improve Dynamic creative makes it much easier and faster for advertisers to target the full suite of available ad inventory.
  31. 31. Mirror 3: Auctions Will Get More Competitive Over Time 31
  32. 32. Mirror 3: Auctions Will Get More Competitive Over Time Pre-pandemic, Sponsored Products CPC growth was accelerating as vendors and sellers poured into auctions. The early days of COVID produced a temporary slowdown, but CPC growth is now soaring right back up.
  33. 33. Divergence 1: OFFLINE 33
  34. 34. Difference 1: OFFLINE Even at the height of the pandemic-fueled boost in e-commerce demand, offline sales accounted for > 80% of US retail sales.
  35. 35. Difference 1: OFFLINE The brick-and-mortar component of several emerging retail media platforms should impact not only advertiser perception of these platforms, but also the under-the-hood workings of ad algorithms.
  36. 36. Divergence 2: Different Markets Provide Different Opportunities 36
  37. 37. Difference 2: Different Markets Provide Different Opportunities The pandemic provided a huge boost to online grocery in particular, amplifying the opportunity surrounding platforms like Instacart and Kroger.
  38. 38. Difference 2: Different Markets Provide Different Opportunities Pandemic-related shifts extended beyond just consumers trying to stay home. They also included corporate benefit restructuring for many companies, and services like Instacart gain from more personalized, at-home benefits packages.
  39. 39. Difference 2: Different Markets Provide Different Opportunities Integration with food assistance programs will help online platforms reach some consumers who haven’t been fully served by existing platforms in the past.
  40. 40. Divergence 3: ROI Measurement 40
  41. 41. Difference 3: ROI Measurement Buy online, pickup in-store Online orders Digitally-induced store visits New-to-brand sales/market share impact Maintained and/or expanded shelf space Measuring ROI is steadily getting more and more complex, especially given the offline opportunity of many emerging platforms.
  42. 42. Schedule Your Consultation with a Retail Media Expert
  43. 43. Q&A
  44. 44. Thank you!
  45. 45. 2021 Amazon & Retail Media Virtual Summit 2021 Amazon Advertising Strategies 10:00 – 10:45am PST | 1:00 – 1:45pm EST DAY 1 - WEDNESDAY, FEBRUARY 24TH Unpacking Amazon’s A9 Algorithm 10:50 – 11:20am PST | 1:50 – 2:20pm EST Amazon Creative that Converts 11:25 – 11:55pm PST | 2:25 – 2:55pm EST Advanced Amazon Operations 12:00 – 12:30pm PST | 2:00 – 2:30pm EST The Emergence of Retail Media 10:00 – 10:45am PST | 1:00 – 1:45pm EST DAY 2 - THURSDAY, FEBRUARY 25TH What’s Next in Walmart 10:50 – 11:20am PST | 1:50 – 2:20pm EST Win Big on Instacart 11:25 – 11:55pm PST | 2:25 – 2:55pm EST

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