After search and social, the third wave of media involves looking at omnichannel to ensure acceleration in the country and globally
Over the past three years, retail media has been making progress in strategic planning and is already being considered the third wave of advertising, after the social and search phenomena. The IAB Brasil committee for this brand exposure tool projects that revenues will exceed one billion by 2027 in the Brazilian market, which in 2023 already accounted for R$600 million. However, for Paulo Schiavon, director of the entity’s retail committee, the acceleration could gain momentum if omnichannel is put into practice by players, who still opt for classic trade marketing projects in physical retail, which accounts for 80% of business, while digital accounts for the remaining 20%. According to Schiavon, the data comes from E-commerce Brasil.
“Retail operates in all channels. And the industry is just beginning to explore this frontier in Brazil, having been regulated in the recent past. I participated in a working group at the IAB in the United States, which resulted in a playbook that talks about in-store OOH, that is, within physical retail stores. This book helps guide the expansion process. But it has not yet been translated into Portuguese. It can be accessed on the IAB USA portal,” says Schiavon, who left the specialized company Unlimital last month, a joint venture between Carrefour and the Publicis group in France for retail in that country.
The omnichannel proposal directly involves out-of-home (OOH) channels, but is open to other digital media formats. OOH allows geolocation to be a force for consumer approaches. In the Brazilian market, Carrefour and its brands, such as Atacadão and San’s Club, recently signed a contract with JCDecaux with a retail bias. However, Schiavon believes that the reach is still too small compared to the strength of the retail chain, the largest in the country. There are 90 stores that use the company’s OOH inventory only in external areas and not in galleries, which still do not have any screens. Carrefour has around 900 stores.
“A player that is making good use of retail in its POS is RD-Raia Drogasil. But it is not yet operating all screens. This is because this depth in the physical store is very young, even though the company is ahead and has the best operation. One ally of retail media is programmatic, which integrates the omnichannel vision. B.Drops also signed a contract with Smart Fit. It depends on advertisers, but the pharmaceutical, food and electronics segments are the ones that are exploring retail offers in Brazil”, guarantees Schiavon, who states that marketplaces, among which the leader Mercado Livre and Amazon, lead the advertisers’ preference in this media model.
Schiavon lists three pillars that can be decisive for digital retail media to have fluidity in the strategic environment. First, the so-called onsite on e-commerce platforms: “These are sponsored banners on retail websites. The most popular ones that make up the third major wave of media. They have more data, are easier to operate and are the format most used by marketplaces and their sellers. To imagine the potential, Mercado Livre has at least 200 thousand sellers investing in advertising on the platform. The same happens on Amazon and others.”
(Credit: Photo by Radek Grzybowski on Unsplash)
Read the full article in the edition of propmark August 12, 2024
