1、Retail Media:Onsite2025In partnership withCOLIN LEWIS 2|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|INTRODUCTIONContentsOnsite retail media advertising is the life blood of retail media.One only has to look at the big players such as Amazon,Wal-mart et al to see that sp

2、onsored products which is how onsite tends to manifest itself to consumers to see just how important it is.But behind this success lie myriad technologies and techniques that make that happen.From understanding search which is what powers onsite to when in the funnel to serve up that ad or product,t

3、hrough to knowing how to measure how well that is working is a complicated and ever-evolving issue.In this report we take an indepth look at what onsite retail media is,how it works,where its pitfalls lie and who is doing it well all so that you,as a retailer,can deploy it to great effect.And what g

4、reat effect it can have.Today,onsite advertising accounts for 80%of retail media revenues and with retail media globally valued at around$170bn in 2025,it is plain to see how crucial onsite is to brands,marketers and above retailer bottom lines.Welcome to Strategic overview 03Market dynamics 05Onsit

5、e models:display advertising 07Onsite models:sponsored products 08Onsite models:sponsored pages 10Onsite success factors 12Data success factors 15Experience success factors 17Relationship success factors 18Technology success factors 20Avoiding the ad load trap 21Measuring onsite performance 23CASE S

6、TUDY:Amazon Advertising 26CASE STUDY:Douglas Marketing Solutions 28CASE STUDY:GrubHub 30CASE STUDY:MediaMarkt 31CASE STUDY:Stadium 32CASE STUDY:Tesco Media&Insight 33CASE STUDY:Uber 35Onsite strategic considerations for 2026 37Partner perspecitve:Imagino 39Partner perspective:Koddi 41Partner perspec

7、tive:Mirakl 43Key learnings 45References and further reading 46Colin Lewis Editor-In-Chief Retail MediaX3|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|STRATEGIC OVERVIEWStrategic overviewBefore we dive into onsite retail media,lets first look at where it fits in the broa

8、der retail media cannonvirtual cousin to end-of-aisle or instore point-of-sale promotions in bricks-and-mortar stores.However,the proposition is more compelling than a typical end-of-aisle promotion given that retailers first-party data allows it to identify consumers who make a purchase after seein

9、g an advertisement on their ecommerce site.Data is the keyThe key is to understanding the power of retail media is understanding the power of data.Retailers have tonnes of purchase data thanks to the huge number of transactions with their customers happening every day.This data is supercharged furth

10、er by the depth of data collected by retailers through loyalty schemes.There are other reason why brands like retail media:Brands can target shoppers at their point of purchase when they are looking to buy Brands can capture shoppers interested in a specific category,such as almond milk on a superma

11、rket site,or paint or on a DIY marketplace Brands can target shoppers who are looking at competitor products The advertising creative used in retail media can be used to match the native retailer customer experience,making conversion more likely Post sale,brands can attribute their retail media inve

12、stment to a specific transaction called closed loop measurement(see next section)Messaging can be personalised to specific shopping occasions in the year,such as back to school,seasonal promotions or even in reaction to world eventsWhat is Retail Media?Lets start at the beginning:what is retail medi

13、a and why is it important?Retail media is advertising within a retailers ecommerce website or apps.Its typically sold by retailers to brands who wish to boost visibility on the digital shelf and promote their brands in a more focused way to a targeted audience and as close to the point of sale as po

14、ssible.If a retailer has shoppers searching for a particular product and can map media assets to that product,retailers are equipped with the capabilities to become a media platform.This is what is now called a Retail Media Network(RMN)the advertising platform that enables a retailer to sell ad spac

15、e across all its digital channels,from apps and websites to instore digital signage.Retailers also use of non-owned,or offsite,channels,such as Facebook,Google,Pinterest,or programmatic,or direct-buy display ads.In all cases,though,the retailer leverages its direct relationship with the shopper its

16、first-party data to create customised audiences for its brand advertiser to target.Think of retail media as any communication and marketing used on an online purchase journey that can be sold to third-parties such as brands to drive sales.In many respects,one can argue that retail media is a Closed

17、loop underpins the success of retail mediaOf this list of benefits,one of the biggest delivered by retail media is the opportunity for closed-loop measurement and attribution.Actual sales data from the retailer means that advertisers can tie campaign and budget spend activity back to direct sales im

18、pact and return on investment.Retail media offers better measurement,more accountability and a better way to discover which ad exposures to shoppers are driving incremental sales.4|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|STRATEGIC OVERVIEWRetail media formatsRetail

19、media is a fast-growing advertising channel,so many retailers are still coming to grips with the opportunity.There is currently,for instance,a lack of standardisation of advertising units and slots available from retailers.The typical retail media formats are split into onsite,offsite and instore.On

20、site This includes ad placements directly on the retailers digital properties web,apps and even email newsletters across banner ads,sponsored product listings,search result placements and native advertising within product pages.Offsite This extends the reach of RMNs beyond the retailers owned proper

21、ties,using the same retailer data to target the same audience segments across the open web through programmatic advertising platforms.It can also see ads placed through partnerships with other retailer websites or marketplaces to expand brand reach to a wider audience with similar shopping interests

22、.Offline/instore While primarily digital,RMNs are starting to integrate physical store experiences such as instore displays that can showcase targeted advertising based on shopper demographics or location within the store.This can extend beyond instore screens and displays to instore radio services,

23、Point of Sale(PoS)and receipt real estate,instore magazines and shelf screens.Other digital inventory RMNs are exploring other areas such as integration with social media platforms,allowing brands to leverage retailer data for targeted advertising within social media feeds.Connected TV(CTV)services

24、delivered through the internet are opening up to retail media,as are traditional,linear TV services.There is also the possibility of placing ads through voice assistants such as Alexa or Google Home,with RMNs incorporating voice-activated advertising opportunities within the shopping journey.The pow

25、er of sponsored products The most common type of formats seen in onsite retail media are sponsored product also called sponsored search advertisements and sponsored display ads.Sponsored product/search ads These are a lower funnel performance and conversion-drive ad format.Sponsored product ads appe

26、ar on search,category and product detail pages.They are the biggest format in retail media advertising and are sold as cost-per-click.Sponsored display ads These ads can feature both retailer and brand assets and can appear both on and off the retailer website(for example,as advertising on Facebook)

27、.Sponsored display ads are also triggered by shoppers using a specific search term,at which point targeted search banners will appear at the top of the results.Display ads are sold on a CPM basis.Sponsored display ads are also applicable to offsite display,programmatic and social media advertising.I

28、nstore These are the latest form of retail media drawing on newer technologies such as digital screens as well as older channels repackaged for the world of retail media such as instore radio and magazines.This report focused on onsite sponsored products the most important and the biggest form of ad

29、vertising in Retail Media.Key take awayInvesting in retail media allows advertisers to convince and convert shoppers to drive revenue growth for their brands at the same time as connecting the dots between spend and sales down to individual SKU level.5|RetailMedia|February 2025Subscribe to Retail Me

30、dia at https:/ 2025 ONSITE|MARKET DYNAMICSMarket dynamicsHow the retail media market is performing,from growth drivers to what the market is actually worth in 2025While the other off site retail media segments are all growing strongly tipped to reach$20bn in 2024 from$7.5bn in 2023 onsite will conti

31、nue to take the lions share of revenues for the foreseeable future thanks to it typically having much higher margins and the direct access to shoppers that it gives.Retail media in digital marketingThe rapid rise of retail media can clearly be seen in how it has shifted from being a minor 15%part of

32、 digital ad spend in 2018,to consistently taking around 20%of total digital ad spend across 2020 to 2023.This is significant because it reinforces not only how retailers keenly exploit their data but also how brands and ad agencies are also seeing retail media as a key channel for engagement with co

33、nsumers.The consistency of the proportion of spend also indicates that it is seen by the agency and brand world as a key part of a broader ad strategy.Retailers can take heart from having cemented their place at the centre of brand marketing.For marketers,the way they spend on retail media is also c

34、hanging,shifting to being a greater part of their ad spend between 2022 and 2024.Almost a third of marketers are looking to shift their spending towards retailer media,with 28%of them looking to commit 6%to 10%of their budgets to it,compared with 19%in 2022,and 28%looking to take up to 20%,compared

35、to just 6%in 2022.Those prepared to spend more than 40%of their digital ad budgets on retail media has grown from zero to 6%since 2022,marking out how for some,retail media is now a significant part of their spend2.Retail media has been part of the digital marketing pantheon for many years and has u

36、nderpinned Amazons business model for more than a decade the buy box approach pioneered by the marketplace giant effectively being a sponsored products option.However,since the pandemic,growth has exploded,with interest in its use becoming fevered in the past three years.Yet an actual monetary value

37、 for the global retail media market is hard to define,since many of the retailers taking part in it dont necessarily report their specific retail media revenues as part of their results.However,looking at the numbers that are available,we can deduce that reported revenues totally around$153bn,having

38、 grown by$18bn 13.7%in a year.Predictions forecast that it will hit$177bn in 2025 and reach more than$231bn by the end of the decade1.While these are only representative of reported numbers and the actual total is likely far higher,these number reflect the growth rate and overall trajectory of the s

39、ector.Of this,some 80%is generated by onsite retail media sales2 while in Europe,26%of retailers and retail media networks reported that on-site ads accounted for 51%or more of their 2024 retail media revenue3.Challenges in the retail media marketDespite its strong growth and increasing popularity,r

40、etail media still faces some challenges.Fragmentation A rapidly increasing number of retail media networks has led to a fragmented landscape,making it difficult for brands to manage campaigns across multiple platforms.There is also a gap between the large market leading players and smaller more nich

41、e retailers,as we shall see later in this report.Lack of standardisation There is an absence of uniform metrics and measurement standards across different retail media networks,which hinders effective comparison and evaluation of campaign performance.This holds back investment by brands since measur

42、ing effectiveness of spend is hard to measure and even more difficult to compare across different networks,regions and more.Budget allocation As we have seen,retail media looks set to garner 20%of overall digital marketing budgets.While this will be more money as overall budgets rise,brand marketers

43、 are currently reluctant to shift more until they get better metrics.For now,brands are primarily relying on shopper marketing and trade budgets to fund retail media growth,showing reluctance to tap into other funding sources without seeing significant improvements in results.Complexity for CPG bran

44、ds Consumer packaged goods(CPG)companies face challenges in planning and measuring campaigns effectively across multiple retailers.This is again because of fragmentation and the lack of standards in the industry,as well as perceived issues with delayed reporting and the6|RetailMedia|February 2025Sub

45、scribe to Retail Media at https:/ 2025 ONSITE|MARKET DYNAMICSpotential for misaligned marketing goals across the CPG company and the retailers.Integration with existing strategies As well as attribution issues,marketers are also grappling with how to incorporate retail media into their overall marke

46、ting mix and measure its impact alongside other channels.Lower click-through rates Despite being an important and growing part of digital marketing and a much-needed ancillary revenue stream for many retailers,click-through rates for retail media ads are quite low.In the second quarter of 2024,click

47、-through rates(CTR)for these ads stood at around 0.39%5.This compares poorly with,say Google Ads,which see a CTR of more than 6%.However its important to note that Retail Media ads serve a different purpose,often focusing on product discovery.Key playersThe retail media market is made up of a very l

48、ong tail of retailers across all retail sectors but it is,currently,dominated by a few giant players who account for the bulk of all revenues.The largest player in the market overall is Amazon,which has an approximate 75%market share and generated around$57.2bn from retail media in 2024.It has unpar

49、alleled scale and huge amounts of customer data.It is also making further inroads into the market with the launch of Amazon Retail Ads,which was created to help smaller retailers leverage Amazons retail and brand database to make money from retail media.Behind Amazon come other big names all in the

50、US that take single digit percentages of the market.Chief among these is Walmart,with its Walmart Connect network accounting for 7%of the market,thanks mainly to Walmarts huge bricks-and-mortar store presence,where instore retail media is highly effective,but where onsite ads on Walmarts digital pro

51、perties drive customer to make purchases.Behind this come retailer Target,which leverages its huge,pan-US high value customer base to sell targeted ads led by fashion and apparel.Next,Kroger leverages its prominence in US grocery to leverage CPG advertising.Globally,Chinese sites such as Pinduoduo a

52、nd Alibaba are starting to become heavy hitters as Retail Media expands beyond the pioneering market of the US.Several major European retailers,such as the UKs Tesco and Frances Carrefour,are also using their dominance in their countrys grocery market to create strong onsite retail media business.Th

53、e power of retail media is even extending to companies that have rich first-party consumer data and large customer bases but which arent retailers in the conventional sense.Hotel chains,airlines,online taxis,food delivery firms and even mobile network operators are getting in on the ad trend,shiftin

54、g the market towards a generic commerce media play.Starting on page 26 we profile some of the key players and notable onsite campaigns,including Amazon Ads,Douglas Group,GrubHub,MediaMarkt,Stadium,Tesco and Uber.1 https:/ take awayWhile putting a number of the value of Retail Media is hard,it is a s

55、ignificant part of both retailers incremental revenues and of brands digital marketing spend.But will it ever exceed more than 20%of all online advertising?7|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|DEFINITIONS&MODELSOnsite models:Display adsAs we have seen,onsite re

56、tail media covers a range of ad types,typically ranging across leveraging display advertising,search advertising,sponsored products and sponsored brand pages.While superficially similar,each is very different in terms of what it can deliver,how it can be measured and the reason behind using it.ONSIT

57、E DISPLAY ADVERTISING Onsite display ads are digital advertisements shown on a retailers website or mobile app.They are the online equivalent of shelf-talkers or point-of-sale displays in physical stores,designed to capture shoppers attention while they browse,or shop online.These ads can appear as

58、banners,tiles or interactive formats on high-traffic areas such as home pages,category pages,search results and product detail pages.How it worksOnsite display ads leverage the retailers first-party data to target shoppers based on their real-time browsing behaviour,purchase history and preferences.

59、This ensures that the ads are highly relevant and personalised.Retailers use advanced ad tech platforms to manage these campaigns,enabling dynamic features such as real-time pricing updates and add to cart buttons.These ads aim to influence purchase decisions at critical moments in the shoppers jour

60、ney.This is often at the bottom of the funnel,where consumers are close to making a purchase,although they can appear anywhere from the home page through to the payment page.The location of these ads is dependent on where the retailer deems it most appropriate to feature them based on how its machin

61、e learning applies its data to each shopper.It is also dependent on what the retailer and,more importantly,the advertising brand,wants to achieve.Goals for brands and retailersFor brands,there are a number of considerations as to how to use onsite display ads in retail media networks,including:Incre

62、ase visibility Onsite display ads offer a direct line to engaged shoppers,enhancing product discovery Drive sales By targeting high intent customers,these ads aim to convert browsers into buyers Build brand awareness Custom ad formats allow brands to tell stories and educate shoppers about their pro

63、ductsRetailers have their own agenda in terms of how they want to leverage display advertising as part of their onsite retail media strategy,including:Generating revenue Selling ad space creates an additional revenue stream Enhancing shopper experience Relevant and personalised ads improve the overa

64、ll shopping journey,encouraging longer browsing sessions and higher conversion ratesMetrics of successThe success of onsite display ads is measured using several key performance indicators(KPIs)familiar to anyone who has had any dealings with any form of online advertising and typically include:Enga

65、gement metrics Click-through rates(CTR)and time spent interacting with the ad are perhaps the most crucial measures of success for retail media onsite display ads since they give an indication of how attractive the ad is to shoppers and how likely they are to be drawn away from the page they are on

66、to consider the product or offer.They are both measures of intent.Conversion rates The percentage of users who make a purchase after engaging with the ad is a second step in this process as it measures actual action in buying the advertised goods.Engagement is important but,in most cases,an actual s

67、ale is the main measure of success.Return on ad spend(ROAS)Revenue generated per dollar spent on advertising can also measure success since it links how much any sales generated actually cost(see page 23).Incremental sales Additional revenue directly attributed to the ad campaign can measure the imp

68、act of an onsite display ad campaign.Customer retention metrics Repeat purchases or increased loyalty among customers exposed to the ads indicates more tangential,though equally important,success.8|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|DEFINITIONS&MODELSOnsite mod

69、els:Search ads and sponsored productsONSITE SEARCH ADS/SPONSORED PRODUCTS Onsite search advertising are typically sponsored product or search ads that appear within a retailers website or app when customers use the search function.With 88%of people using retail site search functionality,this present

70、s a significant opportunity for brands to guide customers through their product discovery journey1.As a result,the success of these ads is attributed to their ability to reach high intent shoppers at a critical point in their purchasing decision,often resulting in higher conversion rates compared to

71、 other forms of advertising.For example,Amazon Advertising(see page 26)made more than$50bn in revenues in 2024 a 22%growth on top of the previous stellar years.During an analyst call about the results in late 2024,Amazon management indicated that Sponsored Product growth continued to be the main dri

72、ver with all the other cool new advertising types such as Amazon Prime still in the very early stages of adoption.How it worksOnsite search ads leverage the retailers first-party data and advanced ad tech platforms to target shoppers based on their real-time browsing behaviour,purchase history and p

73、references.When a customer searches for a product,relevant sponsored ads are shown alongside organic results.These ads often use machine learning to optimise performance in real-time,improving ad outcomes significantly.These ads are typically displayed at the top,bottom or interspersed within organi

74、c search results,and are labelled as sponsored or advertisement to distinguish them from regular listings.Just like advertising on Google or other search engines,these formats can be targeted by keywords and are presented to shoppers when they search for a product or need using onsite search.Sponsor

75、ed product ads appear on search,category pages and product detail pages and are the biggest format in retail media advertising.They are sold as cost-per-click.However,it is worth noting that search works a little differently at every retailer so to win,advertisers need to understand the search drive

76、r priorities of the retailer.This can be any combination of keywords,name and content,sales,conversion,content,taxonomy(how products are classified),clicks and traffic.Goals for brands and retailersFor brands,there are clear advantages to using sponsored product search ads,typically delivering:Incre

77、ase product visibility and discovery When shoppers are searching,they are very much engaged with the retailer and are looking to buy,so surfacing the most relevant products at that point is highly advantageous and often more likely to yield results.Immediate conversion These types of ads served at t

78、hese crucial parts of the search process and drive immediate sales by reaching high intent shoppers when they are most engaged in the buying zone.Boost brand awareness Sponsored product ads can deliver highly relevant brands slap-bang in the middle of the right context to not only woo the shopper to

79、 buy but to also discover or fall back in love with a brand due to relevance.New products can build awareness and trialling at a much lower cost than offline channels.Stand out from competitors Advertisers can target consumers who are looking at competitor products on certain Retail Media Networks.A

80、dvantages over other media Attribution,control and transparency are much better in Retail Media than in traditional approaches to trade spending,sponsorships,events and promotions.9|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|DEFINITIONS&MODELSFor retailers,the advantag

81、es are similar to those of display advertising,with the added relevance adding cache to the shopping experience by:Generating additional revenue through ad sales Enhancing the shopping experience with relevant product suggestions Increasing overall conversion rates and salesMetrics of successThe eff

82、ectiveness of onsite search advertising and sponsored products shares many of the tropes of onsite display advertising in terms of CTR,conversion rates and ROAS,as previously outlined.However,there are some specific differences with search to display,including:Conversion rates The measure of how oft

83、en clicks on ads lead to purchases can be hugely influenced by search,with those search users who find what theyre looking for often doubling conversion rates2.Sales lift A 10%increase in onsite search activity has the potential to generate a 5%increase in sales across any given category3.Engagement

84、 metrics Time spent interacting with search results and subsequent product pages show increase site dwell times and engagement lead to other purchases and return customers.Share percentage An indication of the popularity of specific search terms among users can be a useful measure of how effective s

85、earch ads and sponsored products can be.It is also useful data for honing retail media offerings going forward.Top clicked and purchased products A measure of what people buy provides insights into the performance or relevance of merchandising strategies,which products do well with which segments of

86、 the audience and against which parts of the shopping journey.1 https:/ https:/ is the worlds biggest advertising company.Of the$237.9 billion Google generated in ad revenue in 2023,$175.0 billion,or 73.6%,came from Google Search.Amazon Advertisings 2024 revenues are forecast to be$56bn almost highe

87、r than the major advertising holding companies Publicis,Omnicom and WPP annual revenues combined.What is the major part of Amazon Advertising revenues?Sponsored Search also known as“Sponsored Product”.In other words,the two of the largest and fastest growing advertising network on earth are 70%depen

88、dent on one type of(very powerful)ad unit based on search.So,how do you grow search advertising with retail media networks?There are three key steps:#1 Look the search technology being used:Sarah Mackinnon,product marketing director,Pentaleap says that:“Retail media networks use similar sophisticate

89、d tech to Google for organic products,combining keywords with contextual and behavioural data to ensure relevance”.However,“ads on these networks are often delivered through basic ad servers,detached from this advanced organic search tech”.In other words,when a user enters a complex search,the ad se

90、rver,relying solely on keywords,may miss relevant matchesresulting in lost ad revenue.#2 Adjustable ad placements:adjust ad positions within the grid based on a mix of ad relevance and organic content.Data from Pentaleap shows these“fluid”placements can more than double click-through rates compared

91、to static,fixed placements.Retailers using dynamic placements often have more available space per page,allowing for a greater number of ads without disrupting the shopping experience.#3 The keyword that matters relevance:Shoppers dont mind sponsored product advertising as long as those products meet

92、 their needs.When relevance is prioritised,engagement increases,click-through rates improve,and conversions rise.Advertisers also benefit,as their ads reach a more targeted,engaged audience,driving higher returns on their investment.Relevance is more than just a filter on which products to showits a

93、bout keeping the customer experience central to every decision.Without relevance,even the most sophisticated retail media efforts will struggle to maintain long-term value.#4 Invest in search ad relevance:More than a quarter of search ad revenue now happens on ecommerce sites,according to Emarketer.

94、However,according to retail media expert Andrew Lipsman,retail media search isnt always that great;queries often return results only tangentially related to the shoppers search query.This creates a CX problem that can both alienate shoppers over time and leave ad revenue on the table.Amazon gets awa

95、y with an average of 11 sponsored product searches per page because of its best-in-class search ad relevance.Other RMNs need to aspire to that same level of quality if they want to keep shoppers searching on their sites rather than resorting to AI search.HOW TO GROW SEARCH ADVERTISING WITH RETAIL ME

96、DIA NETWORKS10|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 Onsite models:Sponsored pages and brand storesONSITE|DEFINITIONS&MODELSExpanding the sponsored product relationship a retailer has with a brand leads to offering sponsored pages and branded stores-within-stores that ca

97、n offer many of the advantages of sponsored products,as well as cementing a deeper relationship with brands.While they veer into the realm of turning retailer sites into retailer-run marketplace,if there is a payment by the brand to have a sponsored page or branded store,it still counts as Retail Me

98、dia advertising.So what are they?Sponsored pages are custom landing pages on a retailers website or app that have been created by brands to showcase their products and messaging.These pages often include lifestyle imagery,brand logos and curated product selections to enhance brand storytelling.Brand

99、ed stores,by contrast,are more comprehensive digital storefronts within a retailers platform,functioning as a mini ecommerce site for the brand.They allow brands to display their full product catalogue,organise products into categories and highlight promotions or new launches.How it worksSponsored p

100、ages and branded stores are hosted on the retailers platform,ensuring seamless integration with the shopping experience.The retailer uses its first-party data to drive traffic to these pages through targeted ads,search placements or personalised recommendations,which the brands either pay towards di

101、rectly or share revenues with the retailer.Brands can then design these pages to align with their own identity,using visuals,messaging and layouts that resonate with their target audience.If done correctly,this ties in with some or all of the retailers customer base.Since these brand pages are often

102、 linked directly to the retailers checkout process,there is a much smoother path to purchase and,when tied in with sponsored product ads for the brand elsewhere on that retailers site,they make for a more joined-up experience for the brand to sell to that retailers interested customers.Goals for bra

103、nds and retailersFor brands,the goals of sponsored pages or branded onsite stores are clear:Increase brand visibility It establishes a prominent presence on the retailers platform and can be particularly useful in gaining enhanced ecommerce potential by leveraging the host retailers checkout,payment

104、 and marketing services.Drives product discovery Branded pages allow for the highlighting of specific products or collections to attract specific shoppers.These may be a subset of the brands existing base or can be a means to target parts of the brand offering at a new audience.For retailers,offerin

105、g branded stores and/or sponsored product pages delivers a range of benefits:Generate revenue As part of a retail media strategy,sponsored or branded store pages deliver revenues through selling ad space,in effect monetising all the customer data that the retailer has accrued.It also adds revenues t

106、hrough revenue shares on sales of products made through the branded store.Enhances shopper experience These pages can provide curated content that aligns with shopper preferences and brings both new products to the retailer site and new customers.Strengthens brand partnerships Such collaborations wi

107、th brands creates mutually beneficial campaigns that generate stronger links between the retail and the brand,both in the eyes of customers which can add a brands halo effect to that retailer as well as commercially between the two companies.11|RetailMedia|February 2025Subscribe to Retail Media at h

108、ttps:/ 2025 Metrics of successThe effectiveness of onsite sponsored pages and branded stores combine those of both onsite display advertising and sponsored product page and is evaluated using several key performance indicators(KPIs)including:Traffic metrics Page views,unique visitors and dwell times

109、 Engagement metrics Click-through rates(CTR)from ads or search results leading to the page Sales metrics The percentage of visitors who make a purchase and revenue generated directly from the page or store Return on ad spend(ROAS)Revenue earned per dollar spent on creating and promoting the page/sto

110、re(see page 23)Incremental sales lift Additional sales attributed to the presence of the sponsored page or branded store Customer retention metrics Repeat visits or purchases from customers exposed to the page/storeONSITE|DEFINITIONS&MODELSTHE IMPORTANCE OF INCREMENTALLYThe basic thesis of all marke

111、ting activity is that it must have an impact on sales,or else we are wasting our time on vanity metrics.Incremental sales are sales that would not have occurred without a marketing action.Retail Media is a form of marketing action and also the fastest growing advertising channel.Effective incrementa

112、lity measurement of retail media is investments will be essential to its continued growth.What are the approaches to measure incrementality?Experts all have their own opinions on which methods are best when measuring incrementality,but they all involve a combination of testing and experimentation.Pa

113、ul Dahill of Koddi suggests five approaches:1.Geo Holdouts Run campaigns in some regions while keeping others as control,then compare sales lift.2.A/B Testing Split audiences randomly into test(exposed)and control(unexposed)groups,then measure the difference in outcomes.3.Pre/Post Analysis Compare s

114、ales before and after a campaign,adjusting for seasonality and trends.4.Matched Market Testing Select similar markets,run media in one but not the other,and analyse the lift.5.Media Mix Modelling(MMM)Statistical modelling to quantify the impact of media spend while accounting for other marketing fac

115、tors.For digital media,Dahill points out that A/B Testing is the most rigorous for measuring true incrementality,directly measuring causality,but is harder to execute at scale.Even if you understand incrementality,what are your going to use it for:the answer is better marketing decisions.Thats the t

116、opline outcome.But there are distinctions within this topic.The key question isnt whether a single ad led to a saleits whether your overall investment in a campaign,ad product,or strategy is driving additional sales that wouldnt have happened otherwise.To make informed decisions,start by identifying

117、 the level at which you need insights.1.Campaign-level decisions:expand or cut?Example:You test whether boosting a retail media campaign spend by 10%results in a proportional lift in sales.2.Ad product-level decisions:where to allocate budget?Example:You might find that Sponsored Display takes longe

118、r to drive impact compared to Sponsored Search but provides greater long-term sales lift.3.Product,brand,or category-level decisions:What to Advertise?Example:If advertising a new product doesnt significantly increase overall sales but just shifts revenue from an existing product,it might not be a s

119、mart investment.12|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|SUCCESS FACTORSOnsite success factorsBefore diving into how to measure success,lets define what constitutes a successful onsite retail media strategyMeasuring the success of retail media is a thorny and much

120、 debated topic but before we can get to that,what are the success factors that a brand needs to consider when looking to create an onsite retail media strategy?And what do retailers need to do to make that happen?Onsite success factors for brands For brands using onsite retail media,understanding wh

121、at success looks like in this emerging form of digital marketing requires looking at a range of factors.To digital marketers working for brands,many are analogous to what they already keep in mind when advertising online anywhere else.However,there are some specifics to retail media that brands need

122、 to be aware of.These key success factors include:Full onsite strategy It is important,at least at the initial stages,to run a mix of all the kinds of onsite ads types that the retailer(s)you are working with offer.Include product listing ads and banner campaigns alongside sponsored products and mix

123、 up where on the site they appear to reach relevant shoppers at every stage of the onsite buying journey.This is also an important way to work out which types of ads work with what products,which helps to continually refine each campaign.Full funnel and continuous presence The full site approach sho

124、uld be viewed through the lens of making sure that onsite retail media campaigns target right across the sales funnel,not just at the bottom.This ensures that shoppers will see adverts at various stages of their shopping journey,building subliminal and real awareness of your brand,product or specifi

125、c offer.This also has to be seen as part of a continuous presence,or at least across the lifetime of the brand or product campaign.Understand that it is important to experiment with onsite retail media,especially if you are new to using it,since it does take time to yield results.Strategic timing Th

126、at said,timing is everything.Targeting shoppers when they are in the mindset to purchase is vital,so brand advertisers need to work with retailers to best leverage the data the retail has to deliver contextual and timed adverts in the shopping journey.This is often as simple as targeting an ad to a

127、specific onsite page or location that is relevant to that ads content advertising a new cereal in the breakfast section of the website or it can draw more deeply on the retailer data to be more specifically targeted to certain shoppers reaching a certain place or page.Personalisation All of the abov

128、e relies on leveraging the retailers first-party data to deliver highly personalised ads based on customer behaviour and context.This can run from simple contextual targeting and keyword search that targets relevant ads at shoppers who search for specific types of product or it can dig deeper into u

129、nderstanding where a particular customer is in the shopping journey and correlating that to what they or similar shoppers have done before.This can be used to target the right kind of ad,product or offer at the right part of the journey for that specific shopper,as we shall see later in this report.

130、Performance monitoring and testing Setting appropriate KPIs and measuring how the whole campaign is performing is essential to understanding and constantly adapting onsite retail media campaigns.The more data you can gather on performance over the retail cycle from peak to peak,the better you can un

131、derstand what works and how and when to deploy which kinds of adverts with which retailers.It is also important to test and adjust and adapt strategies based on how ads are received by target audiences.Adequate budget allocation All this isnt necessarily going to be cheap,so brands engaging in onsit

132、e retail media must ensure that healthy budgets are allocated to the whole campaign including to ongoing performance monitoring and testing in order to achieve success.It is also important to make budget available so that the brand can make a play in any relevant and emergent auction on retailer sit

133、es.Brand safety considerations Within all this,brands must ensure that ads are placed in brand-safe environments to maintain brand integrity.13|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 How retailers can deliver success While brands have defined goals from their marketing st

134、rategies and will have clear success factors to measure when using onsite retail media,retailers themselves also need to assess the success of their retail media offerings and adjust accordingly.To ensure they are offering brands the best onsite Retail Media offering,retailers must measure several k

135、ey success factors:Return on ad spend(ROAS)This metric indicates how effectively the ads are driving sales for brands,with onsite ads typically delivering higher ROAS compared to offsite placements(see page 23).While not the be-all-and-end-all of measuring retail media success,it is a good barometer

136、 of how well it is working.Conversion rates A measure of the percentage of ad viewers who make a purchase reflects the effectiveness of targeting and ad relevance.Taken alongside ROAS,this can help form a picture of how well a retailers onsite retail media offering is servicing its clients.Click-thr

137、ough rates(CTR)As with all online advertising,tracking how engaging the ads are in prompting user interaction shows how well they are working in terms of positioning and messaging.Using CTR and conversion together shows how well the programme works to deliver engagement that then turns into sales.Au

138、dience reach and engagement Allied to CTR,assessing the number of unique visitors exposed to ads and their level of interaction is another useful way to see how engaging the positioning and ad content down to the brands using the real estate actually are.It is also important to assess how tailored t

139、he ads are to individual shoppers,based on first-party data and real-time behaviour.Sales lift and revenue growth Quantifying the incremental sales generated directly from retail media campaigns is a measure of success of the retail media offering from the retailer.Likewise,ad revenue growth can sho

140、w how popular the Retail Media network offering is among brands.The more demand,the higher the chargeable rate for that real estate and,hence,an indication of the networks success.It is important here to also track how effectively available ad space is being monetised,potentially using machine learn

141、ing to optimise performance.Cross-channel performance Measuring how onsite ads complement and enhance performance across other channels in an omnichannel strategy can also give an insight into how well a retail media offering onsite works more holistically within the whole retail business.Customer l

142、ifetime value:Measuring how this impacts the long-term customer loyalty and repeat purchases habits across the whole business as well as how it drives repeat business among advertisers and brands is a longer term way to view the success of a retail media network among brands and customers.ONSITE|SUC

143、CESS FACTORS14|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 BRILLIANT BASICS:CREATING A SUCCESSFUL ONSITE RETAIL MEDIA OFFERINGWhat is the starting point for advertisers thinking of using retail media?Its great for increasing brand awareness,generating product trials,getting pr

144、oducts in the shopping basket and growing category share.So,where do you start if you want to achieve any of these goals?Here are four basic steps.Step 1:Understand the shopper journeyFirst understand the shopper journey.Next,understand the target retailers digital commerce store and then the retail

145、 media advertising on offers.Take for example,grocery shopping.Shoppers will have different motivations and mindsets:One shopper might be looking for inspiration and ideas of what to eat for dinner Another might be walking the virtual aisles to find an old favourite A third might be creating a weekl

146、y shop,filling a virtual basket with shopping that spans both food and non-food items Now that you see how target shopper mindsets can be different,a better way of creating our strategy is to know our shopper mission.Why are they shopping?Is it Speed To get in and out as soon as possible?Price To fi

147、nd the best deal?Inspiration Does our shopper want to learn about new products?Time of day Is our shopper wanting to buy lunch,dinner or just a quick snack?The great benefit of retail media is that it can meet the shopper whatever their shopper mission might be.Step 2:Know your brand objectivesOf co

148、urse,its not enough to know your shopper,you must also know your brand objectives.What are yours?As a retailer,you should define the end goal in advance:Define which brands and SKUs are a priority Know what challenge you are trying to address or which problem you are trying to fix Is it increased br

149、and awareness?Greater uptake?Or an increased purchase frequency?Step 3:Walk the store onlineJust as we should walk around a bricks-and-mortar store to find out how shoppers shop,a great tactic is to do the same online.Follow in the footsteps of digital shoppers to understand the experience of ecomme

150、rce shoppers.Here are seven steps to walk the virtual store and learn everything you need to know to help create your retail media network strategy:1.Go to the relevant retailers ecommerce site2.Search for your brand and search keywords related to your brand3.Examine the top brand and non-brand sear

151、ch terms that appear4.Pay attention to what the retailers search suggests as results5.Know how many competitors there are6.Understand how these are selling online 7.Crucially,make sure the search title is correct and that the spelling correctly matches a query.Secondly,and equally importantly,ensure

152、 the brand name is correctly labelledStep 4:Create content that convertsBefore spending any money,make sure you do a content audit so you have the best chance of converting on the digital shelf:Ensure you have high quality product and category page content Ensure you there are succinct product title

153、s,compelling images,clear product descriptions,customer ratings and reviews,and accurate categorisation of SKUs Ensure organic performance from search is monitored to ensure budget optimisationONSITE|SUCCESS FACTORS15|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|SUCCESS

154、FACTORS:DATAData success factorsThere are many things that drive a successful onsite retail media offering,with data at the forefront.What does a successful data strategy look like?Data is the foundation of retail media.So what data do retailers have?How can it be monetised through onsite advertisin

155、g?And,more crucially,how can a retailer make the most of its first-party data while still protecting the privacy of its customers?What data?Retailers have a wealth of customer data that grows all the time as customers interact with retailers more,both on and offline.Every one of these interactions c

156、an be measured in some way and can deliver an increasingly detailed view of the entire customer base,its individual cohorts and even down to individual preferences.This,in essence,is what Retail Media sells a way of connecting brands with the right customer at the right moment in their shopping jour

157、ney.Typically,this data comes from a variety of sources,both on and offline,although increasingly,a combination of the two,since shoppers are becoming ever more channel agnostic.It is drawn from:Loyalty programmes Customers sign up to receive discounts and benefits from being loyal to a retailer,in

158、return for giving that retailer increasingly rich data about who they are,where they are and what they like,do and buy.A good example of this is UK supermarket Tesco,which is seen as something of a retail media pioneer in how it worked with its partner dunnhumby to leverage the data of its Club Card

159、 loyalty programme.Tesco now has access to data from 23mn members across the UKs 28.3mn households(see page 32).Club Card membership has grown from 14mn in 2020 Online browsing behaviour This is data on how shoppers shop online based on what they look at,what they search for and what they buy.It can

160、 be anonymous,which gives a broad picture of who does what,or much more personal if it is tied in with loyalty programme or signed up users.A prime example here is Carwow,which uses customer browsing data to connect automotive manufacturers directly with potential buyers,bridging the gap between bra

161、nd marketing and dealer activation.Purchase history The analysis of every journey from browsing to buying and who buys what online.A recent example of this is Uber,which leverages aggregated customer data to offer personalized advertising based on user behaviour,such as frequent visits to city-wide

162、music venues or multiple trips to a specific restaurant.Customer profiles Data and information gleaned from all manner of customer touchpoints,from payments through to all and any data submitted when signing up to loyalty programmes.The data gathered across the above typically includes:Demographics

163、Product preferences Shopping frequency Average basket size Brand affinitiesHow to use this data This data allows retailers to offer brands highly targeted access to its customer base,allowing them to target the right consumers at the right moment.Creating a successful onsite retail media offering us

164、es this data to:Segment audiences for targeted advertising While retailers can use their data to slice their audience along the obvious lines of age,gender,location,purchase history,shopping frequency and spending,there is much more than that lurking in the data.Analysis of the retailer data can als

165、o reveal brand affinities,price sensitivity,how loyal(or not)they are,as well as their responsiveness to occasions such as religious festivals or discount drives.It can also be used to slice and dice the customer base down to almost individual levels,allowing brands to use retailer sites to hit cert

166、ain customers at certain points with specific ads that chime with some or all of these factors.Personalise ad content and product recommendations This deep understanding of the consumers is then used to personalise the content seen by each shopper when they hit the retailers website.For brands adver

167、tisers,this means serving up specific ads and recommending specific products at a point where that customer is most likely to engage.16|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 Optimise ad placements and timing Similarly,the right content should appear in an optimum positio

168、n at a point in the shopper journey based on their behaviour data to maximise the possibility of engagement with that ad or content.Measure campaign effectiveness and provide closed-loop attribution Knowing who is looking at what allows retailers and their brand advertisers to measure how effective

169、a campaign is since it allows for closed loop attribution,a technique that directly connects media spend to specific consumer actions,particularly online and offline sales.If you know the shopper,you can track what they do.Challenges to data success It is worth noting that using consumer data does c

170、ome with its own set of challenges:Privacy concerns and regulations What data is collected and how it is used and stored is highly regulated across the US and Europe through CCPA and GDPR regulations.These cover how consent is sought for gathering data,which has to be explicit from the user,along wi

171、th details of how that data will be used and stored.This is particularly true of sensitive data such as location,ethnicity and nationality,although it applies across all data.The issues are compounded for Retail Media networks since that data is effectively shared with brand advertisers regarded as

172、third-parties as far as the consumer giving the data is concerned.Retailers must be clear about this use case when collecting the data.Networks must also be careful how that data is used to make sure it remains within the regulations and the explicitly garnered permission to collect that data.Howeve

173、r,retailers must balance this against the advantages this data can deliver to personalisation.Consumers accept a degree of intrusion if what they get back is of value to them.Such is the balancing act in Retail Media.Data integration and management Aside from how to use the data,retailers face an ad

174、ditional range of challenges with managing the data they gather.Fragmentation is perhaps the biggest issue here.Retailers often have data scattered across different departments,making it difficult for retail media networks to leverage and leading to inaccurate targeting.It also leads to issues of no

175、 data standardisation across the company,again making it hard to fully leverage.This can result in issues with integrating the systems needed to manage data usage an serve onsite ads.It can also potentially cause privacy and regulatory issues since the data may have been collected using different te

176、rms and conditions of use,particularly among third-parties.Scale While large retailers with established data strategies may have sufficient first-party data to create effective retail media networks,smaller retailers face challenges in building similarly comprehensive datasets from their limited cus

177、tomer bases and lack of effective data collection strategies.This explains why smaller retailers might buy in data to help bolster what they have and to create a more compelling retail media offering.However,doing so can lead to even more issues with fragmentation,integration,data management and reg

178、ulatory compliance regarding data privacy.ONSITE|SUCCESS FACTORS:DATA17|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|SUCCESS FACTORS:USER EXPERIENCEUser experience success factorsA key success factor for onsite retail media lies in what the user experience is like for cu

179、stomersWhen customers get an experience that is seamless and that delights them,they are more likely to engage with ads and go on to make purchases of those products.So,what are the success factors for retail media from an experience point of view?Seamless integration Ads should blend naturally with

180、 the shopping experience,appearing as native content rather than disruptive elements.This is particularly true for sponsored products but also applies to banner ads and content.For retailers offering a variety of ad formats including sponsored products,sponsored brands and video sponsored shelf at t

181、he top of category pages making all slot in with what the shopper has searched for must be a seamless experience.It must also work across online and mobile.Ads have to be adaptive and responsive so that the experience is uniformly nice everywhere that the customer might touch.Context-awareness Simil

182、arly,displaying ads that are appropriate to the users current shopping journey and intent are part of making the ad offering seem unobtrusive and part of the process.Ads needs to look and feel as though they are being helpful and understand the shoppers needs.Personalisation Underpinning all experie

183、ntial aspects of retail media is the leveraging of first-party data to deliver highly relevant ads based on customer behaviour and preferences.Knowing as much as possible about who is looking can make it easier to offer that seamless experience.Moreover,it allows for contextual awareness to not only

184、 tap into where and when they are looking but also who is looking.Knowing as much as possible about the shopper allows for the experience to be more closely tailored to their preferences and habits,which ultimately leads to a more enjoyable and hopefully financially fruitful interaction.How to make

185、this work Doing this in practice requires a range of factors within the retailers set-up:Ad tech and data analytics Retailers need live data analytics to know who is looking at what and what they might want to see in terms of advertising.To then serve up these ads or sponsored products based on what

186、 is being looked at or searched for,retailers need to integrate data analytics with an ad management platform that contains the collateral.These two functions can often be combined into a single platform that manages assessing who the customer is and then seamlessly presents the right content at the

187、 predicted best point in their journey.Such platforms can track and help measure the success of the process.Aside from using tech to manage the process,there must also be good internal communication and cooperation between a retailers marketing,IT and sales teams.Continuous testing and optimisation

188、To refine ad placements and formats,testing and constant adjustments to how the data is analysed must be made.This includes constantly updating the data as new customers arrive and existing customers interact with the retail media offering,as well as what ad content is served.Testing different forma

189、ts,placements,wording and even colour palettes is an ongoing process.Remember that what constitutes a good experience is constantly shifting as users experience broadens and their tastes and habits change.Challenges to experience creation While user experience is a moveable feast,there are some cons

190、tant challenges that need to be met by retailers running retail media networks.Balancing ad revenue,relevance and user experience It is important to avoid ad overload that could detract from the shopping experience.For while there may be ample opportunity to serve many ads,does that help the shopper

191、?It is vital to make ads relevant and judiciously deployed to avoid ad fatigue.Balancing these factors with the need to make money is an ongoing challenge.Data privacy compliance Navigating regulations like GDPR and CCPA while leveraging customer data to deliver the optimum experience is an even tig

192、hter balancing act.Technical integration Ensuring smooth integration with existing ecommerce platforms and tech stacks is as vital as integrating teams within the business.Its harder than it sounds,too.18|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|SUCCESS FACTORS:RELAT

193、IONSHIPSRelationship success factorsWith the customer-retailer-brand relationship being key to retail media,what makes for a successful match?At the nexus of where retailer data meets customer experience lies the building of relationships.Customers have relationships with retailers,while brands want

194、 to capitalise on that its the fundamental principle of retail media.So,what are the key tropes of retail media relationships and what underpins their success?Why are relationships key?Relationships are key because they transcend the mere clicking on a timely ad or sponsored product and move towards

195、 something much more long-term and mutually beneficial to the retailer,the brand and,most importantly,the customer.For brands using onsite retail media,the goal is to increase customer engagement and conversion rates in the short-term before,in the longer-term,to build brand awareness and foster cus

196、tomer loyalty for repeat purchases and extended lifetime value.For retailers,the aim is to generate additional revenue from ads and attract more brand investment in their retail media platforms.However,its also looking for enhanced value,better experience and loyalty for its customers(and the brands

197、 it works with,see panel).Together,these are the basis of a long-term relationship between customer,retailer and brand,the success of which is measured in terms of sales uplift(for both brand and retailer),customer retention and increasingly lifetime value(again for both brand and retailer)and loyal

198、 customers who recommend the retailer and the brand,thus increasing sales.How to manage relationships Creating and managing these relationships involves a range of actions from retailers building their own brand identity and loyalty.These can involve what they sell and how much they sell it for,to w

199、hat sort of lifestyle idea they are selling and how they gather and use first-party data to create successful experiences for customers.Brands have the same challenges and follow many of these same rules.In a retail media context,bringing them together to leverage the data of loyal customers to help

200、 place relevant brands in front of them while they are searching and shopping online requires all the tactics and strategies we have covered so far,along with specialised tools to manage these relationships.And that means customer relationship management(CRM)tech.The role of CRM in onsite Retail Med

201、ia In a retail media context,customer relationship management(CRM)plays a crucial role in enhancing the effectiveness of advertising and marketing efforts.CRM systems are used to collect,analyse and leverage customer data to create the highly targeted and personalised Retail Media campaigns for bran

202、ds.CRM in retail media functions by collecting and collating the first-party data on customer behaviour,preferences and purchase history and then segmenting customers based on these attributes and behaviours.It can do this across on-and off-line and its the engine that drives customer interactions a

203、cross a retail business.It is the point where all the retailers customer data becomes something of value since CRM uses it to create customer profiles from which the rest of the retail media play flows.Measuring relationship success The success of CRM in retail media is measured through various metr

204、ics,many of which are the same metrics that retail media relies on to assess its own overall success.However,there are some differences.Typically,this involves:Customer engagement Participation rates in CRM programmes measure how well consumers are engaging not just with retail media campaigns but a

205、lso with all programmes initiated by the CRM Redemption rates This is a percentage measure of customers who act on personalised offers Sales uplift Increase in like-for-like sales pre and post-CRM implementation Return on investment Sales-to-cost ratio of CRM initiatives Customer lifetime value The

206、increase in long-term customer value and loyalty19|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 From a retail media perspective,specific CRM success factors include:Ad performance Improved click-through rates and conversion rates for retail media ads Brand attraction Increased

207、interest from brands in investing in the retailers media offerings.Relationship challenges The key challenges with managing relationships across the onsite retail media value chain lie in how to align all the moving parts of the process around the data being used.These challenges include:Technology

208、disconnect Fragmented systems and platforms make it difficult to plan,execute and analyse campaigns holistically Revenue cannibalisation Ensuring retail media generates new revenue streams rather than shifting existing ones Evolving supplier relationships Retailers need to understand and align with

209、advertisers needs,inverting traditional dynamics Internal politics Demonstrating the value of retail media to broader business stakeholders Data standardisation A lack of standardised and comparative measurement across different retail media networks Talent and capability development Retailers need

210、to acquire new skills to effectively sell and manage advertising solutionsMANAGING THE RETAILER-BRAND RELATIONSHIP While the relationship between consumer and retailer is primary in onsite retail media models,the relationship between the retailer and its brand advertisers is also key.In this relatio

211、nship,the brand and retailer are,in essence,looking to leverage and sell to consumers to mutual benefit.To successfully manage relationships with brands using their retail media networks for advertising,retailers should focus on:Data-driven insights Provide brands with valuable customer insights der

212、ived from first-party data in order to enhance targeting and campaign effectiveness Transparency Offer clear performance metrics and attribution models to demonstrate the value of retail media investments Personalisation Leverage customer data to create tailored advertising experiences that resonate

213、 with shoppers and drive better results for brands Omnichannel integration Ensure seamless integration of retail media across online and instore channels to provide a cohesive customer experience Collaboration Foster strong partnerships with brands by involving them in strategy development and offer

214、ing support in campaign optimisation Innovation Continuously update and expand retail media offerings so as to keep pace with evolving technology and ever-changing consumer behaviours Brand safety Implement measures to ensure that ads appear in appropriate contexts,maintaining brand integrity Flexib

215、ility Provide brands with various ad formats and targeting options that meet their specific marketing objectives Education Offer training and resources to help brands maximise the potential of using retail media networks Feedback loops Establish regular communication channels to gather brand feedbac

216、k and continuously improve the retail media offeringONSITE|SUCCESS FACTORS:RELATIONSHIPS20|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|TECHNOLOGYTechnology success factorsAlthough data and CRM underpin onsite retail media,many other technologies are also needed to make

217、it a succesRetail media is a tech-centric business that brings together a raft of technologies and tools in a carefully orchestrated symphony to deliver the personalised and seamless experience that retailers and brands need to create lasting relationships.We have already seen how data management,ad

218、 management and CRM platforms are the foundation of onsite.Yet a host of other technologies also play their part.These include:Advanced data analytics platforms These process and analyse first-party customer data in real-time,enabling personalised ad targeting and measurement.Examples include Mimbi,

219、Data Impact by NielsenQ and InfoSum.Customer data platforms(CDPs)These aggregate and unify customer data from various sources,creating comprehensive customer profiles for better targeting.Examples include Bloomreach,Tealium and Klaviyo.Ad tech platforms These manage ad delivery,optimisation and perf

220、ormance tracking across various formats and placements.Examples here include those from tech providers such as Criteo and CitrusAd,as well as those run by retailers such as Amazon Ads,Walmart Connect and Kroger Precision Marketing.Programmatic advertising solutions Fully programmatic approaches enab

221、le retailers to shape their media offerings across on-site,data monetisation and off-site campaigns.Examples here come from The Trade Desk,Criteo,Instacart and Outbrain.Self-service portals User-friendly interfaces allow brands and agencies to easily plan,execute and optimise their campaigns.Amazon

222、Ads and Walmart Connect both offer these to brands,with Criteo and CVS available to brands and retailers.Audience targeting technology This leverages customer data to create and target specific audience segments.These systems can be found as part of wider marketing offerings from Criteo,Microsoft an

223、d dunnhumby.Omnichannel integration tools These connect online and offline customer data and advertising touchpoints for a seamless experience.They are sold by the likes of Dentsu and Topsort.Measurement and attribution systems Closed-loop measurement creates a direct link between advertising and sa

224、les.AI and machine learning algorithms These power personalisation,optimise ad placements and improve overall campaign performance.Such tools are increasingly supplied as part of all the tech platforms that make up the retail media stack,although some bespoke suppliers include Cooler Screens and Gop

225、uff.Content management systems(CMS)These manage and deliver various ad formats across the retailers digital properties.Common CMS include WordPress and HubSpot Content Hub.How they fit together These technologies link together to create a comprehensive retail media ecosystem:Data analytics platforms

226、 and CDPs feed into audience targeting technology and AI algorithms to enable personalised ad experiences Ad tech platforms and programmatic solutions integrate with self-service portals,allowing brands to access and utilise the retailers first-party data for campaign execution Omnichannel integrati

227、on tools connect with measurement and attribution systems to provide a holistic view of campaign performance across all touchpoints AI and machine learning algorithms work across the entire stack to optimise ad placements,personalisation and overall campaign effectiveness21|RetailMedia|February 2025

228、Subscribe to Retail Media at https:/ 2025 ONSITE|AD LOAD TRAPAvoiding the ad load trapA word of warning:pursuing ad revenues at the expense of experience and relationships can create poblems.Heres how to avoid the ad load trapYou might be familiar with this story:you are a regular user of an app,or

229、a media site or a sports site.Gradually you notice that it is harder to get to the content you want,as you appear to be trapped in an obstacle course of sign-ups,pop-ups and ads.Eventually you sidle off sullenly to another site promising the same content only to find that it too gradually succumbs t

230、o the same cycle of more:more ads,more pop-ups and more things that get in the way.This gradual degradation happens as a result of the site prioritises revenue at the expense of user experience.Its a trap.Retail media expert Raj Redij-Gill believes the trap emerges when relevance is ignored in the r

231、ush for higher revenue.In the case of Retail Media,the simplest analysis of the problem is one of ad load an increase in the number of advertising units per page.Redij-Gill points out the sequence of events that leads to this trap:Stage#1:Retail media initiatives start with great promise.By adding a

232、 few sponsored product slots,retailers can generate immediate revenue without dramatically altering the shopping experience.Stage#2:The retailer is conservative and the balance between organic and sponsored products remains intact,and the shopper experience doesnt suffer.Stage#3:Initial success is a

233、chieved,everyone gets excited and senior management who dont know the outcomes of increasing the number of advertising units per page,asks the Retail Media team to increase revenue and by adding more ad slots.Stage#4:The retail media network starts prioritising revenue over relevance,targets over cu

234、stomer experience.Stage#5:As more ad slots are introduced,ad load per page increases and relevance starts to slip.Organic listings end up below the fold.Sponsored products take priority.Shoppers get frustrated with irrelevant result.Stage#6:Trust is eroded and shoppers set-off for other sites to get

235、 what they actually want,not what the retailer wants to sell themInitially,nothing happens.There are immediate gains.Long term,its another story.Click-through rates and conversions gradually drop,and advertisers get poorer results for their investment.Avoiding the trap The keyword if you will forgiv

236、e the pun relevance.Redij-Gill points out that“shoppers dont mind sponsored products,as long as those products meet their needs.When relevance is prioritised,engagement increases,click-through rates improve,and conversions rise.Advertisers also benefit,as their ads reach a more targeted,engaged audi

237、ence,driving higher returns on their investment.”Redij-Gill continues:”relevance is more than just a filter on which products to showits about keeping the customer experience central to every decision.Without relevance,even the most sophisticated retail media efforts will struggle to maintain long-t

238、erm value.”Here are five steps that retail media networks should take according to Redij-Gill:Step 1 Define your retail media principles view every decision through the lens of relevance:Many retailers already use bidding systems to prioritise sponsored products.However,its not enough to simply rewa

239、rd the highest bidder.Sponsored placements must also serve the shoppers needs,not just the advertisers.Retailers should move beyond standard bidding models means using data-driven algorithms to assess customer behaviour,shopping patterns,and contextual signals to ensure that the products being promo

240、ted align with shopper expectations.Step 2 Balancing sponsored and organic refocus on relevance:Relevance needs to be the driving force behind how retailers balance sponsored and organic products.Standard metrics such as ad-to-organic ratios,click-through rates,and conversions should 22|RetailMedia|

241、February 2025Subscribe to Retail Media at https:/ 2025 be looked at,but the most important question is“are these metrics reflecting relevance to the shopper”?Analysing all metrics through the lens of relevance improving the overall shopping experience Step 3 Personalisation elevating relevance,not j

242、ust performance:Personalisation is one of the key capabilities behind retail media.AI and machine learning are being used to create personalised product placements is great,but,again,the lens we must look through all if these is relevance.Ask yourself is our personalised advertising making our ads a

243、ppear as natural,useful recommendations that align with what the shopper wants as opposed to random insertions?Step 4 Reframe A/B testing and metrics monitor their success through relevance:A/B testing,monitor click-through rates,and track conversion rates are great tools for optimising performance,

244、but the key differentiator is how these tactics are applied with relevance as the primary focus.Raj Redij-Gill gives an example:“if you are running A/B tests to optimise ad placements,the goal shouldnt just be to maximise clicksit should be to determine how relevant those clicks are to the shoppers

245、intent.Metrics like click-through rates and conversion rates are essential,but they need to be interpreted with relevance in mind.“Step 5 Align with advertisers on relevance:The final point is that retail media networks should collaborate with their advertisers to align relevance as core strategy.Ad

246、vertisers may want results,but they also need to reach shoppers who are engaged and want to buy.Make sure you communicate with your advertising partners that campaigns that prioritise relevance over volume are what matters.Use the data and insights capability to share what resonates with shoppers to

247、 build trust.Reminder:relevenace matters Retail media networks must identify the point where they are tipping into prioritising revenue over relevance.While its tempting to add more ad slots and push revenue higher,this will lead to trust going down.Now,you might say that Amazon are increasing their

248、 ad load and they are getting away with it just look at Amazon Advertising revenues.The riposte to this is always the same:you are not Amazon.You are not a$600bn a year behemoth so you cannot replicate their strategies!The long-term success of retail media for every part of the industry retailers,ad

249、vertisers,adtech,marketers,agencies hinges on relevance.Lets leave the last point to Raj Redij-Gill:relevance drives engagement and engagement drives revenue.Retailers can ensure that their retail media strategy remains profitable and customer-focused through the lens of relevance.ONSITE|AD LOAD TRA

250、P23|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|PERFORMANCE METRICSMeasuring onsite performanceMeasuring the success of onsite Retail Media campaigns is essential to understanding their value yet actually doing so is another matterMeasuring the success of an onsite reta

251、il media campaign has become a central tenet of how retail media works.However,what to measure and how it correlates to success is far from simple.There are so many different variables and a plethora of factors that play into retail media that measuring them all can produce a muddier picture than ju

252、st picking a few key metrics.There is also the issue of different retail media networks and brands using different metrics,so comparison between how different sites perform becomes very hard to do.Measuring effectiveness To measure the effectiveness of an onsite retail media campaign,both brand mark

253、eters and the retailers that run the retail media network have a range of metrics that they can measure(see panel).However,there are some key measurements that can provide a holistic view of performance.Cost-per-click(CPC)Perhaps the most basic online ad metric is simply working out the cost for eac

254、h user interaction with each ad.This certainly helps brands and retailers get a feel for the value of any given onsite campaign.However,it only delivers an indication of how much it is costing to get someone to click.In reality,brands advertising through onsite retail media need to know not just wha

255、t a click costs but also what it yields.Return on investment(ROI)Looking at how the money spent achieving each click impacts revenue generation can be a more useful measure.ROI is calculated using the revenue attributed to the advertising,minus the cost of buying the ad placement divided by the cost

256、 of investment(then multiplied by 100,if you want it as a percentage).This provides a clear,quantifiable measure of campaign performance by directly linking ad spend to revenue generated.Measured by tracking and linking consumers who see an ad and then made a purchase,ROI can offer a simple way to a

257、ttribute revenue and sales uplift to any specific ad campaign.However,it has limitations.ROI focuses primarily on immediate financial returns,potentially overlooking long-term brand building effects or customer lifetime value.An overemphasis on ROI might also lead to neglecting the limited scale of

258、onsite inventory,which is restricted by the retailers website traffic and ad capacity.It can also be misleading,since high ROI doesnt necessarily mean high overall sales volume,which could lead to misguided decision-making if not viewed in context.Additionally,a focus on ROI can lead to increased co

259、mpetition for limited ad space,potentially driving up costs and reducing overall effectiveness.Return on ad spend(ROAS)The shortcomings of ROI as a metric to measure the success of onsite retail media is why many in the retail media market both on the brand and retailer sides prefer to look at ROAS.

260、Calculated by dividing the revenue attributable to an ad by the cost of the ad,ROAS can provide a clear,quantifiable measure of campaign performance by directly linking ad spend to revenue generated.It is also often seen as favourable when measuring onsite retail media performance because onsite typ

261、ically has a much higher margin than offsite advertising and generates more sales uplift due to it targeting engaged shoppers right at the decision or purchase point of their journey.ROASROI As the percentage of non-branded spend increases,ROAS decreases and top-line grows ROAS is calculated using d

262、igital attribution,which can vary from platform to platform ROAS decreases with increased incremental sales ROAS can foster a sense that channels competition rather than working together Focusing on high ROAS can lead to you targeting more and more heavy buyers,limiting growth ROI inversely correlat

263、es with profit growth ROI decreases as you spend more and increases as you spend less The easiest way to increase ROI is to decrease ad spend Focusing on increasing ROI limits growth ROI is not actually a measure of effectiveness but rather how efficiently you achieved it 24|RetailMedia|February 202

264、5Subscribe to Retail Media at https:/ 2025 ONSITE|PERFORMANCE METRICS However,it too has many of the same shortcomings as ROI:a focus on immediate financial return rather than long-term brand-building impact;flattening ad strategy into something that is only performance-led;and not giving a complete

265、 picture of customer engagement,brand awareness and market-share growth.It is also open to misinterpretation,with high ROAS not necessarily meaning high overall sales volume which can lead to misguided decision making by brands.Incremental return on ad spend(iROAS)This is a metric used to measure th

266、e effectiveness of advertising campaigns by focusing on the additional revenue generated directly from advertising efforts.iROAS is calculated by subtracting the cost of ads from the incremental revenue and dividing by the cost of the ads(before multiplying by 100 to get that as a percentage).It dif

267、fers from traditional ROAS in several key ways.Firstly,iROAS measures the revenue that would not have occurred without the specific marketing campaign,excluding baseline sales and accounts for the baseline consumer propensity to buy.This reduces measurement bias in digital marketing,leading to a mor

268、e detailed picture of what is happening with an onsite campaign.A high iROAS indicates that a marketing tactic is effectively driving growth,while a low iROAS suggests the tactic may be targeting people who arent willing to buy or would have bought regardless of marketing.As a result,iROAS is becomi

269、ng increasingly important in the marketing industry,especially in retail media,since it offers a more sophisticated approach to measuring campaign effectiveness and allocating marketing budgets efficiently.The measurement conundrum Despite all these approaches,there are still some nagging issues wit

270、h measuring the success of onsite retail media campaigns.Everyone talks about measurement frameworks,data,incrementality,ROI,ROAS,iROAS or standardisation as though they are talking about the same thing,when theyre not.This is because:Different marketing goals require varied metrics Marketers do not

271、 use the same metrics in every category and industry to measure success,such as alcohol versus clothing,for example Retailers do not have access to metrics because the information is buried in POS Instore retail measurement is impossible to measure reliablyAll the complaints will eventually be addre

272、ssed since measurement standards have evolved significantly over the past year due to the various IAB chapters releasing new standards for retail media for online,offsite and instore.The more these are adopted,the more the complaints should in theory go away.However,the complaint about standards wil

273、l continue since the pace of technological change means that new measurement methods will be needed for new methods of marketing.Currently,many brands use ROAS and ROI as their main KPIs because they were championed by Google and Facebook as measures for advertising.But are they the best way to meas

274、ure retail media?The marketing community is recognising that these measures are far from perfect.ROI is a very different metric than ROAS,yet both are used in retail media.THE TRANSISTION FROM ROAS TO IROAS RMNs generally cant outcompete Meta and Google on ROAS,but iROAS is a game they can win.Accor

275、ding to retail media expert Andrew Lipsman,there is good reason why they can come out on top.They offer contextually relevant ads powered by better data and closed-loop attribution are all the ingredients an advertiser should need to drive incremental sales.Analysis by research firm Clerdata of a CP

276、G brands cross-channel media spend finds that RMNs producing the highest iROAS with paid search and social barely above water,says Lipsman.Nevertheless,RMNs have acquiesced to the use of ROAS.In fact,theyve contributed to and arguably accelerated its adoption,Lipsman believes.The time has now come f

277、or RMNs to break advertisers of their addiction to a metric fundamentally disconnected from the P&L,he says.We now know that ROAS is easily gamed by targeting mechanisms designed to put ads in front of the audiences pre-disposed to convert.Yet the metric will continue to be used in the absence of so

278、mething better.If they havent already done so,RMNs should introduce iROAS into their standard KPIs and report it alongside ROAS.This will ease their transition to their new“god metric”while familiarizing themselves with the relationship(or non-relationship)between iROAS and ROAS.25|RetailMedia|Febru

279、ary 2025Subscribe to Retail Media at https:/ 2025 ONSITE|PERFORMANCE METRICSin 2021(audio speakers,computer printers,dolls,laptopcomputers,microwaves,power drills,running shoes,smartphones,tablet computers and televisions).Their papers showed that ROPO is“economically substantial”.Among the consumer

280、s who researched a product on Amazon,more end up buying it off-Amazon than on-Amazon across every analysed category.In other words,off-site purchases often exceeded onsite purchases,with ROPES varying from 0.5%to 10%across categories,with doll toys,printers and running shoes having higher ROPES than

281、 laptops or smartphones.Moreover,consumers who visit more product pages(PDPs),click more and spend a longer time on the products Amazon page are more likely to buy the product somewhere,be that on and off Amazon.Upper funnel advertising ROPO Professor Pauwels and his colleagues found that upper funn

282、el advertising such as Display Ads,Video Ads or Sponsored Display ads tends to have a relatively larger share of off-site sales contribution relative to lower funnel advertising such as Sponsored Products advertising that affects mainly onsite salesThey also found that always-on advertising strategi

283、es on Amazon showed greater impact on off-site purchase behaviour compared to time-limited campaigns.Alternative measures So,if ROAS and ROI are imperfect KPIs should you wish to grow,what can be used instead?The concept of being digitally influenced is called ROPO(research online,purchase offline).

284、There are many peer reviewed papers in marketing journals on the impact of retail media and the ROPO effect.For example,Professor Koen Pauwels,Professor of Marketing at Northeastern University in Boston,has written and collaborated on numerous papers.In one called Amplifying Off-site purchases with

285、on-site advertising,Pauwels and his colleagues introduced two key metrics to measure ROPO.They combined Amazon internal data from customers browsing behaviour on A and matched these with survey responses for the same customers about their offsite behaviour across 12 product categories.Professor Pauw

286、els and his colleagues created two brand-level measures to quantify the magnitude of off-site purchases among onsite researchers:Research onsite purchases elsewhere share(ROPES)and Amplifier Ratio(AR).ROPES(research on-site,purchase elsewhere share)The ratio of off-site buyers to onsite researchers

287、within a category Amplifier Ratio(AR)A proxy for amplifying ROAS by comparing onsite purchases to off-site purchases within the same categoryProfessor Pauwels research was based on serious data sizes:they collected survey responses of 41,946 Amazon customers across ten categories 26|RetailMedia|Febr

288、uary 2025Subscribe to Retail Media at https:/ 2025 ONSITE|CASE STUDIES:AMAZON ADVERTISINGAmazon Ads:a juggernaut that cant be stopped?Amazon Advertising is the retail media network arm of Amazon and is widely seen as the pioneer of retail media.Delivering$56bn in advertising revenue in 2024 up 21%fr

289、om 2023 and significantly ahead of the$37.8bn generated in 2022 Amazon Ads alone is larger than the revenue earnings of the entire global newspaper industry and almost$20bn more than Netflix annual revenues.It is not far off twice the revenues of the global music industry.Amazon only broke out the A

290、mazon Advertising business in its 2021 numbers but as is the case with most retail media businesses,it has 50%operating margins,which means that advertising delivered as much profit as Amazons much touted cloud business,AWS estimated at$20bn to$25bn all without the billions required in capex.The pri

291、mary driver of this growth is onsite sponsored products,which dominate marketers budgets on Amazon and continue to yield positive returns.Amazon exceeded the broader digital advertising market by 2.8%.Sponsored products make up more than 75%of all Amazon Advertisings advertising revenues.Most seller

292、s start their Amazon advertising journey with a sponsored products campaign because they are the most straightforward to set up.Some 70%of Amazon shoppers never click past the first page of search results.This is due to the platforms homogenised product listings page.Title,price,photo and rating all

293、 have a standard layout,making it challenging for individual brands to stand out when shoppers search for a product type.This homogenised listings page approach is one of the reasons why Amazon Advertising has been so successful.Amazon has been increasing the type,scope and capability of its adverti

294、sing options at pace.Today,there are five main Amazon Advertising solutions available:Sponsored Products Sponsored Display Sponsored Brands Sponsored Display Video Ads Amazon DSPMost brands start their retail media advertising journey with a Sponsored Product(also called Sponsored Search)campaign an

295、d then move to Sponsored Display.The Amazon Advertising juggernaut shows no real signs of stopping and indeed,it looks like its increasing as brands and sellers are spending more money on Amazon ads as inventory has increased.Company name:Amazon AdvertisingParent retailer:AmazonSector(s):AllHQ Locat

296、ion:USOperational in:Everywhere except Cuba,Iran,North Korea,Sudan and Syria.Restricted access in Algeria,Bahrain,Bangladesh,Bhutan,Bosnia-Herzegovina,Brunei,China,Egypt,India and IsraelSales revenue:$590bnRetail media revenues:$56bn(2024)Find out more:27|RetailMedia|February 2025Subscribe to Retail

297、 Media at https:/ 2025 ONSITE|CASE STUDIES:AMAZON ADVERTISINGThe advertising business is the make or break on getting the business to break even.As analyst,Russ Deiringer of Stratably writes,“Improvements in targeting and leadership around measurement,particularly with Amazon Marketing Cloud,along w

298、ith growing ad inventory are allowing it to continue to maintain the lions share of the retail media market.”Whats more surprising,according to Stratably Research,is that brands are shifting more of their Retail Media budget to Amazon than alternatives,despite it owning 70%to 80%of the market alread

299、y.Stratably point out that in the US,“There is a gravitational pull of Amazon when it comes to retail media.Most agencies and brands I speak to say that while there are a ton of potential Retail Media networks to expand to,they continue to devote nearly all of their attention and resources to Amazon

300、 because of the rapid pace of innovation and large opportunity”.In other words,despite its scale,Amazon Advertising continues to be the benchmark that all others must look up to.Amazon brings retail media to SMB retailers and brandsThere has been lots of talk about how the second and third tier reta

301、ilers could struggle to make a retail media network business work for them when they might not have the scale to make it attractive to brands,nor the ability to invest the resources in technology and heading.Another approach that has long been talked about in retail media is the network model,where

302、one stack and one set of people manage everything for a bunch of retailers who might pool their audiences to access the riches of retail media.However,Amazon is aiming to tackle this disparity with the launch in January 2025 of its Retail Ads Service.Amazons pitch to smaller retailers and brands is

303、as follows:Load up your catalogue through an API and you get to use the same Amazons adtech stack that powers the$50bn Amazon Advertising business You get access to a vast pool of advertisers already using Amazon Advertising You can manage your direct advertisers,all within the Amazon Ads console Yo

304、u receive comprehensive reporting and insights to help measure and optimise your advertising You get access to data clean rooms powered by Amazon Web Services(AWS)It seems pretty convincing for a smaller retailer but is that it?The question is whether this positions Amazon to strengthen its dominanc

305、e over retail media.Data privacy also looms large.With critics questioning whether Amazon can resist using other retailers data for its gain,does giving your data to the largest online retailer in the world really make sense?Larger retailers are less likely to embrace this offer,given their establis

306、hed infrastructures and greater concerns about competition.As one Retail Media executive observed:“The big question is whether retailers want to rely on the tech and support one of their biggest competitors.”For smaller players,however,the benefits of using Amazons ad tools may outweigh such concern

307、s.28|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|CASE STUDIES:DOUGLAS MARKETING SOLUTIONSDOUGLAS Marketing Solutions:the in-house agency approach The DOUGLAS Group is a leading omnichannel provider of premium beauty in Europe.Since its foundation more than 200 years ago

308、,the company has evolved into an international retail group with several brands across Europe,including DOUGLAS,NOCIB,Parfumdreams and Niche Beauty.It operates both physical stores and a comprehensive digital offering,including apps and online shops.Retail media has become an important new source of

309、 sales and a significant driver of profitability across the group.It is also a high margin offering that is reshaping the traditional relationship between the retailer and its suppliers.In 2019,the Group established its own retail media unit,DOUGLAS Marketing Solutions(DMS).This operates as an in-ho

310、use agency,providing its brand partners with consumer insights and tailor-made 360-degree omnichannel media strategies.This positions DMS as a key player in the future of digital advertising.There is no such thing as a typical retail media campaign at DMS,with each campaign tailored to the specific

311、needs and objectives of the partner.Based on ecommerce data,CRM insights and instore performance,DMS identifies key challenges and translates them into a customised campaign strategy.The data-driven approach not only forms the basis of the strategy but also ensures that campaigns have maximum impact

312、 and deliver the results that matter most to the brands partners.Onsite campaigns on DOUGLAS consist of Sponsored Product Ads and Audience Ads.Both have their advantages and start at different points in the funnel.Both types of ads sit directly at the moment of truth,which means that the user is alr

313、eady in the shop,directly at the point of sale.Sponsored Product Ads are located in the lower funnel,directly on the product level.They are sales-oriented and focus on sales and the return on ad spend.They are also a booster for the share of voice.These ads ensure that brands reach customers who bro

314、wse a specific category or search for a specific products.Sponsored Product Ads are present on the product overview and search results pages.DMS Sponsored Product Ads work on a CPC(cost-per-click)basis.The awareness aspect and the cost-per-click allow DOUGLAS customer brands and their products to se

315、cure a constant share of voice.According to the company,the overall ROAS is 8.30,which means that,on average,DOUGLAS customers invest 1 and get 8.30 out.Company name:DOUGLAS Marketing Solutions(DMS)Parent retailer:The DOUGLAS GroupSector(s):BeautyHQ Location:GermanyOperational in:Europe with a focus

316、 on DACH,the Netherlands,Belgium,Italy,France,Spain and PolandSales revenue:$4.8bn(2024)Retail media revenues:No disclosedFind out more:www.douglas-marketing-29|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|CASE STUDIES:DOUGLAS MARKETING SOLUTIONSAudience Ads,on the other

317、 hand,are located in the upper and mid funnel.These are intended to positively influence the purchase decision among a relevant target group and are therefore intended more for awareness generation and consideration rather than as a sales tool.These ads are about positively influencing the right tar

318、get group in the right direction by inspiring relevant users with a view to their shopping behaviour and preferences in a contextual way.Audience ads are an especially beneficial way for product launches or a complete brand launch to get noticed in a specific,relevant environment.The billing model i

319、s CPM(cost per thousand contacts),since audience ads are not aimed at sales,but rather at awareness and consideration.The key performance indicator here is the achievement of visual contacts in the relevant target group.Audience Ads are possible on all category pages in the shop,as well as on mobile

320、 and desktop.Across these two types of onsite adverts,DMS campaigns pursue very different goals.To this end,DMS has four major use cases:Always-on-campaigns Designed to consistently increase sales.Specific peak Particularly high-turnover times are used,for example Christmas or Mothers Day Innovation

321、/new in Completely new product launches are to be carried out in new categories A line extension This is the case when a new product is launched in an existing line that already has brand recognitionLooking ahead,DMS is in a strong growth phase with an ambitious three-year plan to further consolidat

322、e its leading position in the retail media sector.Its focus will be on rapid scaling across its nine existing markets,with particular emphasis on Benelux,Italy,France,Poland and Spain.The company also plans to significantly expand its product portfolio.It is currently working on launching an instore

323、 video solution,which will allow brands to tell their stories more compellingly at the point of sale.Additionally,there are plans to leverage its off-site expertise to integrate retail media into its physical stores,creating a fully comprehensive omnichannel approach.The goal of DMS is very specific

324、 to build a robust,full-funnel offering that is optimised to meet the evolving needs of its brand partners.The company aims to focus more on strategic partnerships,actively seeking collaborations within the ad-tech and advertising ecosystem in order to further drive innovation.30|RetailMedia|Februar

325、y 2025Subscribe to Retail Media at https:/ 2025 ONSITE|CASE STUDIES:GRUBHUB GrubHub:using onsite to power quick commerce Consumer demands are shifting and they now want delivery in an hour.Welcome to quick commerce,a trend thats expanded from being a good way to burn VC cash to something that consum

326、ers expect 247.Thanks to apps and new partnerships,consumers now expect that all food restaurant meals and groceries alike appears on demand.However,such fast delivery comes at a cost one that is currently being met by retail media.One of the ways to achieve sustainable income to drive quick commerc

327、e is to leverage traffic to create an advertising business.US food delivery service GrubHub shows the potential of this paring.Grubhub was one of the first quick food delivery marketplaces in the US.Today,it is a part of Just Eat T and has more than 33mn users and 375,000 merchants across 4,000 US c

328、ities.Whats unique about Grubhub is its partnership with Amazon.Since 2022,Amazon Primes 180mn members have had access to Grubhub+,the brands premium subscription offering,with zero delivery costs.In May 2024,direct ordering via the Amazon app and website was announced.Amazon shoppers can order from

329、 restaurants in all 50 states with Grubhub directly on A and in the Amazon Shopping app.If the customer is an Amazon Prime member,they get a free Grubhub+membership worth$120 a year,which includes no delivery fees,lower service fees and 5%credit back on pick-up orders.The partnership also includes e

330、xclusive deals on Prime Day.This Amazon partnership delivers substantial reach and substantially differentiated audience against US competitors such as Uber Eats or DoorDash.GrubHub has partnered with Koddi to launch the GrubHub ads network.The shift in retail media is a must to compete with Uber Ea

331、ts(see page 35)and DoorDash,which have long had large ad businesses aimed at restaurants.Ads will appear when shoppers search for specific cuisine or local restaurants.“As a marketplace with tens of millions of customers,were excited to give merchants and brands more opportunities to grow their busi

332、ness through Grubhub,”said Kyle Emmett,senior director of Retail Media and merchant solutions at Grubhub.“These new advertising tools are a natural extension of our long-standing efforts to make Grubhub an effective marketing channel for our merchant partners to acquire more consumers and a further

333、step to reach our full potential as an advertising channel.”Company name:GrubHub Parent retailer:JustEat Takeaway(JET)Sector(s):Food deliveryHQ Location:USA Operational in:USA and Canada Sales revenue:$2.1bn(2023)Retail media revenues:Not disclosedFind out more: 31|RetailMedia|February 2025Subscribe to Retail Media at https:/ 2025 ONSITE|CASE STUDIES:MEDIAMARKTHow MediaMarkt onsite campaign booste