Before having access to data and actionable insights, there was a significant amount of “guessing” involved in the day-to-day decision-making of businesses.
While there were, of course, market trends to follow… retailers were largely making assumptions about the actions and behaviours of their customers.
This lack of knowledge acted as a barrier between them and their ongoing success.
Luckily, as the ecommerce ecosystem and the technology which underpins this industry continues to develop, so has the volume of insights available to leaders everywhere.
However, despite the digital solutions becoming available in the market, retailers weren’t acting quickly.
In fact, it took a few years for them to even consider adopting data technology and, as a result, industry digital transformation is still slow today.
The retail industry’s unwillingness to embrace change is so monumental that even Harvard Business Review has recently called them out…
“For years now, executives have been told that advanced analytics can provide better answers to almost every business question. Yet, in retail, surprisingly few companies have taken full advantage of the opportunity.”
Truthfully, without key players like Tesco, Carrefour, and Ahold Delhaize leading the charge for a digital revolution, retailers would be much further behind than they are today.
Similarly, specialist industry service providers (like mediarithmics) also have to be credited for their role in kickstarting the data-driven market.
Historically, retail media investment has been an inefficient and ineffective process.
Advert purchases were solely contextual, with shelf and checkout space being bought with the simple aim of reaching as many customers as possible. Although this certainly promised quantity, the leads lacked quality.
More recently, through the implementation of data technology, businesses have instead gained the power to target their adverts with precision. 90% of the insights available today were generated in the last two years alone, demonstrating the sheer scale of change that’s on the horizon.
As the retail media landscape has become increasingly more digital and commerce media has entered the scene, the arena as a whole has become significantly more performance-focused.
Rather than trying to convince their customers to throw money into the void and hope for results, retailers can promise buyers a specific and measurable return on investment.
This has led to a considerable spike in retail media investment, where eMarketer projects the United States digital ad spending will grow 25.8% to reach $51.36 billion in 2023 and $61.15 billion in 2024.
Other sectors are also taking note of the potential offered by data technology. A recent media alliance between Channel 4 and Nectar360 hinted at a brighter future for retailers everywhere. Their data partnership will “revolutionise advertiser targeting on All 4” – benefiting Sainsbury’s considerably.
As the world has become increasingly information-focused, businesses have raised their standards when it comes to their marketing.
They want results.
When purchasing adverts from retailers, therefore, brands of all sizes are expecting data-driven solutions that guarantee exposure to their specific target audience.
As such, anyone selling media needs to be deeply digitally integrated; gathering relevant data from multiple sources to provide evidence of their value. Before a contract can be signed, retailers must be able to demonstrate the benefits of advertising through their channels.
That’s where data technology offers the perfect and flexible solution.
In a market littered with complex growth challenges, retailers must prioritise consolidation their data. This will enable:
Alone, any of these benefits would be enough to convince a brand to partner with you over a competitor. Together, they are powering the future of retail media so don’t get left behind.
Additionally, commerce or retail media players are in a unique position to help brands across the entire funnel, from upper-funnel branding campaigns, to more performance driven campaigns down the funnel, with the ability to close the measurement loop throughout
With the aid of our Customer Data Platform, you’ll be able to take your media sales to the next level and grow your profits considerably.
Ready to learn more? Contact mediarithmics, whose next-generation data platform was specifically designed to support retailers in achieving their global goals.