LAS VEGAS – Retailers have emerged as significant players in the advertising market as brands seek to reach consumers not only when they’re most ready to shop, but also because retailers have troves of first-party data that provide insights into people’s shopping habits. The data are a valuable resource that gives retailers greater power in the ad marketplace.
“We’re now shifting to this world where there’s increasingly more power on the supply side and it comes up in different ways,” Conor McKenna, director at LUMA Partners, said in this interview with consultant Joanna O’Connell at ShopTalk 2023.
Developments such as the disappearance of third-party cookies amid changes in privacy regulations, the push toward supply path optimization (SPO) to remove middlemen from the programmatic ad marketplace and the scarcity of premium video content are driving these shifts in the media ecosystem.
“In CTV, you have scarcity of inventory because it costs a lot more money to make a TV show than a news article online,” McKenna said, “In retail media and commerce media…as there’s more signal loss and we start using more purchase data into the platforms, there’s a scarcity of data. Again, power shifting from demand over to supply.”
Retailers not only can parlay their data into advertising sales on their own online marketplaces or in-store settings that are equipped to show digital ads, but also on other websites.-
“There’s very valuable data — you can use it to monetize on your own site and you can use it to monetize off-site,” McKenna said. “That is really creating audiences and being able to find people both direct first-party deterministic, as well as potentially probabilistic and expanding that.”
You are watching ‘Inside Commerce: Retail Media & What’s Next? Reports from ShopTalk 2023,’ a Beet.TV Leadership Series presented by Criteo. For more videos from this series, please visit this page.