In 2022, advertising contributed $37.7 billion to Amazon’s total revenue. The wealth of shopper data it has access to gives the brand a significant advantage, but so does the technology stack it owns. For starters, Amazon lays claim to a fully-fledged DSP and, in 2019, acquired Sizmek’s ad-serving and DCO technologies for deeper capabilities.
As it stands, few (if any) other retailers have the muscle to invest in a media proposition like Amazon does. Despite this, the opportunity to add new streams of high-margin, incremental revenue means that creating a media network has become a strategic priority for any retailer with a large enough audience.
But retailers are historically media buyers -- not sellers. In order to maximise the commercial value of a retail media network, retailers must learn from media owners how to build a robust adtech stack that can properly monetise their audience data across owned and third-party media.
While many retailers have begun to assemble various technologies to create an offering, they’ve quickly encountered a series of challenges.
To become competitive, retail brands need an intelligent technology stack that can process large volumes of customer data and deliver media campaigns for advertisers from the information gathered.
Your stack should consist of three clearly defined layers (as shown in the diagram), awarding function and ease-of-use without compromising capability. While we summarise the key parts of these systems below, you can find more detail in our recent whitepaper, “The Retailer’s Guide to Unlocking Data-Driven Advertising Success”.
Sufficient access to behavioural and transactional data is a fundamental starting point for any retail brand that wants to execute onsite and offsite marketing campaigns. To efficiently collect and process data, your technology stack needs an Online Analytical Processing Engine working behind-the-scenes. This would allow for the seamless aggregation of your data to create a single customer view, crucial to powering the rest of your technology stack.
To successfully publish adverts at the right time, to the right audience and, in the right format, every technology stack needs an element of campaign management. This includes the ability to query your data management layer to create audience insights and segments and then activate those into digital media for advertisers. An integrator technology helps to push these segments through product recommendation tools (like Criteo) and DSPs (such as Google) to then return campaign data to your data management layer for accurate measurement.
Your technology stack needs to be catered to its end user. Often, this is a retailer’s internal data team. Ideally, though, it will be your marketing team or even your end clients who operate your retail media technology. The UX layer sits on top of the other layers to transform the entire system into something usable - meaning individuals don’t have to work through a complicated bundle of Application Programming Interfaces (APIs) and database languages.
Once you can access insightful customer data with ease, your organisation will have opened the door to a whole world of potential.
At mediarithmics, we’ve spent years carefully designing a technology that’s capable of translating vast volumes of customer data into actionable segments.
In partnership with Bleu Capital and Spring Invest, we’ve put together a paper that will teach you more about data technology, aid your decision-making, and help you successfully navigate the competitive retail media landscape.
Download "The Ultimate Retailer's Guide to Unlocking Data-Driven Advertising Success” to find out more, today.