More retailers are selling advertising space on their websites, giving brands a way to reach consumers when they’re most ready to shop. Merchants that have gathered customer data have a rich source of information that helps brands to figure out which consumers can be targeted for conversion, similar to how direct-to-consumer (DTC) marketers behave.
“If you’re a DTC marketer, you have your own data for targeting and for measurement. Retail media networks are now using ad-tech and building out their own offerings,” Megan Pagliuca, chief activation officer at Omnicom Media Group, said in this interview with analyst Joanna O’Connell.
Retailers are adopting a variety of ways to work with brands, including those that traditionally have filled their store shelves with products, and with ad-tech companies that can provide the systems to sell advertising. Discount chain Walmart, as one example, last year began a partnership with ad-tech company The Trade Desk to launch its own demand-side platform, Walmart DSP.
“What Walmart’s done with Trade Desk really is an innovative approach,” Pagliuca said, adding that other retailers have partnered with sell-side platforms to provide a way for brands to reach audiences across different websites.
There are opportunities for smaller retailer to participate in selling ads, even if they don’t have the same scale as a large chain or online marketplace, she said.
“We’ll work with SSPs, we already have our own PMPs [private marketplaces] and inventory packages and our own rates that we’ve curated, but then trying to apply those smaller retailers where we can use their audiences against our inventory,” Pagliuca said.
You’re watching “Retail Media: What’s Next?” a Beet.TV Leadership Series presented by Albertsons Media Collective and Criteo. This video was produced at Beet.TV’s Retail Media Leadership Dinner in NYC. For more videos from this series, please visit this page.