Retail media may be one of the oldest forms of advertising, with shopper marketing—advertising products in-store—as old as commerce itself. However, in 2023, it became the hottest topic within the industry. Attending an industry event without hearing a discussion on retail media was impossible. In 2024, retail media has moved from hype to reality as retailers, brands, and other media owners throw their hats into the ring. As retail media networks become a mainstay, GroupM’s This Year Next Year report predicts retail media will grow by 17.5% globally in 2024.

But as with any emerging media, we’re still just scratching the surface of their potential. Currently, Consumer Packaged Goods (CPGs) are the sweet spot for these solutions. They enable these consumer brands, primarily selling exclusively through retailers, to deliver personalized advertising experiences across the retailer's media properties.

Eventually, for these retail media solutions to break through to the next echelon of media, they will need to start attracting advertisers who do not sell through their stores (online or offline) and are, therefore, not a natural fit—non-endemic brands.

The Value of Retail Media to Non-Endemic Brands

Retail media has exploded due to the wealth of online and offline shopper data that retailers have amassed over the years. Retailers such as Target in the US, tout over 165 million shoppers. At the same time, in the UK, Tesco has 21 million loyalty card members, an audience of significant value to the brands that sell within the supermarket. However, this data is precious not only to the brands on those shop shelves, whether virtual or physical, but also to advertisers who don’t sit on those shelves.

Let's explore some examples of how non-endemic brands can tap into the huge potential of retail media networks. 

Retain and attract new viewers

Eyeballs are more sought after than ever. It's been said that broadcasters are no longer just competing with other channels but with every movie and television show ever made. Broadcasters and streaming providers need innovative strategies to break through the noise and attract new viewers. As a broadcaster prepares to launch the latest season of their baking show, an ideal audience may include individuals who have purchased baking goods or products in the last six months. By collaborating with a grocer, the broadcaster can analyze last year's viewers and compare them to shoppers who recently purchased baking products. This allows them to serve targeted ads for their hit show across the retailer's properties, with customized messaging for both returning viewers and potential new fans.

Bolster app subscribers

Another example could be a gym or fitness app looking to attract new members. It would be reasonable to assume that individuals who purchase health foods, supplements, and sports equipment are likely part of the ideal buyer persona. By accessing the shopper data of a health retailer, the gym or fitness app can target those shoppers while suppressing their current members to minimize ad waste.

Battle subscription fatigue

Subscription fatigue is a real issue in 2024. YouGov recently reported that 31% of UK consumers have canceled or removed at least one streaming service in the last 12 months. Therefore, increasing your subscriber base is more challenging than ever. A highly engaged audience for your subscription service might be individuals who have just purchased a new TV and want to unleash its full power. As a streaming provider, collaborating with an electronics retailer to target recent TV buyers with an introductory offer could be a fantastic way to increase your subscribers.

This is just the start. By utilizing retail media networks, non-endemic brands can effectively reach a broader audience, increase brand visibility, and create synergistic marketing campaigns that align with the retailer's customer base and shopping behaviors.

These relationships are also symbiotic. The baking show viewers are also a prime audience for the retailer to sell their baking products, the fitness app subscribers are a fantastic audience to offer exclusive deals on the health retailers' supplements, and the electronics retailer would benefit from advertising their latest TV or soundbar through the streaming platform. 

Finally, these partnerships can nicely close the loop on measurement. Incrementality, a method used to measure the impact of a marketing campaign, plays a crucial role here. By comparing the behavior of a group exposed to the campaign with a control group that is not, advertisers can determine the true effect of their efforts. For example, the fitness app can bring data on new app subscribers, while the retailer contributes exposure data - those shoppers targeted by its ads. This analysis enables a clear understanding of the campaign’s impact on sign-ups.

To do so most effectively, these companies must be able to safely and efficiently collaborate across their various first and second-party datasets. 

The Importance of Data Collaboration

Data collaboration is the critical component that enables retail media networks to thrive. Data Clean Rooms enable data-driven partnerships without risking customer privacy or competitive advantage.  

Firstly, by empowering brands to match and compare their customer base to the customer base of other businesses, they can identify native synergies that can easily be tested and validated before committing any resources or capital. 

Secondly, it ensures that all parties are in the driver’s seat with full control over their data, creating an opportunity for experimentation. Finally, data collaboration leverages first-party signals directly from the customer, producing natural and unintrusive campaigns. Here’s why:

1. Enhanced Targeting: Data collaboration allows non-endemic brands to leverage detailed shopper data to create highly targeted campaigns. By understanding consumer behavior and purchase patterns, brands can tailor their messaging to resonate with specific segments of the retailer’s audience.
2. Personalized Advertising: With access to retailer data, non-endemic brands can deliver personalized ads that align with individual shopping habits. This increases the relevance of the ads, making them more engaging and effective.
3. Improved ROI: Targeted and personalized advertising leads to higher engagement rates and better conversion, resulting in improved ROI for non-endemic brands. Efficient data use ensures that marketing budgets are spent wisely, reaching the most relevant audiences.
4. Seamless Customer Experience: Data collaboration helps create a seamless customer experience by ensuring that advertising feels natural and relevant. Non-endemic brands can integrate their messages into the shopper’s journey in a cohesive and non-intrusive way.
5. Future-Proofing: As privacy regulations evolve, data collaboration strategies prioritizing transparency and consumer consent will be better positioned to adapt. Retailers and brands that work together to manage and utilize data responsibly will maintain consumer trust and stay ahead of regulatory changes.

Data collaboration within a clean room is key to unlocking the full potential of retail media networks for non-endemic brands. By working together, retailers and advertisers can create highly effective, targeted, and personalized campaigns that benefit both parties and provide a better consumer experience.ben