Brands have more ways to reach consumers at different parts of the purchase funnel, especially as ecommerce sites show advertising amid product listings. Many retailers also have collected consumer purchase data that can be harnessed for more effective ad targeting.
“The continued advances in digital technology and in connectivity are enhancing the customer experience and making the shopping process more convenient and more enjoyable for end consumers,” Frank Kochenash, chief executive of ecommerce at ad agency Omnicom, said in this interview with Beet.TV. “That has a corollary of creating additional business opportunities for retailers and for brands.”
Not only can retailers generate additional revenue from advertising, but brands have another avenue for engagement. As video screens in the living room, kitchen or car become more interactive, they also help to drive transactions, Kochenash said.
Retailers As Media Outlets
As retailers become media outlets, their role switches from a customer of brands to a supplier of services. Ad agencies have a role in the growing area of commerce media in helping brands to manage these changes.
“The preponderance of the relationship is the retailer is a customer of the brand. As retail media grows, it flips that — and the brand is now the customer of the retailer,” Kochenash said, “but you can’t easily divorce those two.”
Role for Smaller Retailers
Large online marketplaces like Amazon and retail chains like Walmart have become leaders in retail media with their massive scale, but there are opportunities for smaller ecommerce sites to participate in the digital ad marketplace.
“We start to see roles of what some platforms and aggregators networks play,” Kochenash said. That’s — Criteo being a prime example there — where it’s doing two things, creating a network across retailers, but also providing the technology that allows the mid-size and smaller retailers to cost-effectively and meaningfully participate in this opportunity.”
You are watching “The Road to Cannes 2022 – Commerce: The New Cannes Conversation”, a Beet.TV Preview Series presented by Criteo. For more videos from this series, please visit this page.