SAN JUAN, Puerto Rico – In the new world of first-party marketing data, retailers have the keys to a new kingdom.
Limits on traditional audience identifiers may have propelled that trend.
But, in this video interview with Beet.TV at Beet Retreat San Juan, Havas Media Chief Data Officer Mike Bregman says retailers now have an incredible opportunity to predict ad outcomes – if they can be convinced to open up their data.
Bregman, who, once upon a time, worked on statistical techniques and retail brand analytics for Cannondale Associates and Market Fusion Analytics, told panel host Zach Rodgers the capabilities these days are extraordinary.
“These queries used to take days to run,” he says. “You can run these queries now with fast processors in minutes with (panels of) 200 million.
“You can run these queries so fast that, theoretically, you could optimise in DSPs (demand-side platforms), you could push them into different publisher environments.”
Predict the future
Thanks to customer data platforms, data management platforms and data clean rooms, the tools for using marketing data for ad targeting have developed such that Bregman sees the rise of “citizen data scientists”.
“If you train the analyst well enough, they can create their own bespoke (audience) segment,” he says.
“That doesn’t have to be someone who’s bought the product before. It could be someone who has bought a competitive product. It could be someone that’s bought it three times, but not four times. It’s not just about reaching the consumer. It’s about trying to build lifetime value.
“Within retail, what you want to see is not someone buying ketchup once – you want to see them buying ketchup once a month, every month, multiple years. Based on what they’ve done in the past, you can predict what they’re likely to do in the future.”
Open the ecommerce door
Clean rooms are starting to allow owners of first-party data to match and deduplicate customer sets in a privacy-compliant manner.
Bregman warns against data owners and others adopting too-siloed an approach to their use of their data.
“The Walmarts and CVSs and other types of retailers, Krogers, 84.51° – they give you access to the panel that they think is representative,” he says.
“It’s a really smart business move for a lot of these e-commerce companies. They don’t want brands, especially the marketing teams, thinking about moving the dollars from one retailer to another. They want to keep it as a closed loop within their own environment.
“As the ecommerce space becomes more expansive and more cross retailer, it’s going to be hard for them to figure out which one actually got the conversion or which marketing dollar caused the conversion at that retailer.”
You are watching coverage from Beet Retreat San Juan 2022, presented by AppScience, Infillion, MadHive, SpringServe, Univision & VideoAmp. For more videos, please visit this page.