Data collaboration between retailer, advertisers and publishers and people-to-people advertising are strategic for retail in this period
With the commercial dates of great strength for retail squeezed into less than two months, this end of year proves to be unique, important and intense for commerce. Added to this is the post-election context and the change in consumption profile in the first period of post-pandemic parties.
After the period of exclusive digital experimentation, which marked social isolation, a normalization of the consumption journey is expected. Therefore, the shopping habit from today until the end of the year will say a lot about the behavior of consumption in the coming years.
The consumer journey that combines the face-to-face experience is now allowed and encouraged with the practicality and added value of e-commerce already known to users. All you have to do is decide how to buy, from a simple beer for the World Cup games to the last gift wrapping for the secret friend!, says Marcelo Mattar, executive director of Retail Media at LiveRamp Brasil.
By aggregating data from the holiday seasons of previous years and the real consumption profile of buyers, the industry gains even more breath and direction to make marketing investment decisions in the coming years. This habit, or journey, formatted in a new world of consumption should help brands understand and meet customer demand, explains Mattar.
The actual consumption data available with Retail Media is there to help agencies plan actions more creatively, as finding the right customers is no longer an issue. With this data, it is possible to offer, if not today, but in the near future, consumption advantages based on loyalty, activated by data and delivered through personalized relationship channels (such as push notification, without dispersion, for example). All of this becomes a very important strategic issue when combining creativity with assertiveness and the perfect media equation.
Competing for consumer attention
The pressure for retail to recover from the poor performance of the third quarter and to close the targets for the year increases, and the competition for consumer attention and decision will be exceptionally fierce in these last two months. Investing in digital advertising wisely, based on the connectivity of real people’s data, brings an unprecedented competitive advantage to companies that opt for Retail Media.
IBGE data show that restricted retail trade (excluding automobiles and construction materials) had a 0.8% drop at the margin and a 5.2% drop in the third quarter, compared to the same period last year. Restricted retail is only 0.5% above the pre-pandemic level, while extended retail is 3.8% below.
The IDV Instituto para Desenvolvimento do Varejo already indicated a recovery, predicting a rise for the segment of 6.7% in September, 6.2% in October and 6.9% in November over 2021.
With Retail Media, whereby retailers and advertisers work together, you can maximize your efforts to get a better return on your digital advertising investment. Retail Media is already impacting the way advertising is done. With the right technology partner, it is possible to have secure data collaboration, with accurate market analysis and with full respect for user data, says executive Marcelo Mattar.
He explains that it is possible to have campaigns based on people, evaluate the journey and the customer’s life cycle until the purchase, in addition to accurately measuring their conversion, which was intangible until then, with the direct connection of the result of the investment in average with the numbers of real sales.
How Retail Media Transforms Digital Advertising
Just as big players, such as Facebook and Google, shook and transformed digital media a few years ago, with a new way of advertising, Retail Media is also shaking up current structures. Of course, this is nothing new for anyone in the retail or advertising markets, but the fact is that this future has already arrived. The numbers show that the retail market has been leveraging the use of data exponentially, because the result is there.
Walmart announced that it made no less than $2.1 billion from its ads solution. Amazon reported having invoiced US$ 31 billion in 2021. Carrefour showed growth of more than 50% in e-commerce in the first quarter of 2022 in Brazil.
A McKinsey study shows that Retail Media Networks (RMNs) are growing by more than 10% year on year in the UK. What used to be considered a side business that generated supplemental revenue from sponsored products is now a strategic way for retailers to drive consumer loyalty. In the US, NMR growth could account for up to $100 billion in ad spend by 2026. With overall NMR operating margins in the 50-70% range, companies across the retail spectrum should be aware of the potential economical.
In Latin America, it is no different. Large retailers are moving and investing heavily. Carrefour, for example, is strengthening its Retail Media-focused business arm, Carrefour Links. Carrefour Links brings a reliable solution to the largest global consumer brands, which benefit from Grupo Carrefour data to generate customer insights, activate people-based campaigns and accurately and assertively measure their conversion into real online and offline purchases, says Mattar, responsible for the partnership in Brazil.
The most profound difference is that you will return to Carrefour, because there they understand the customer and react to their journey, giving discounts, advantages, incentives based on consumption and customer profile, which is loyal to the retailer or brand and should be rewarded, for example. This relationship building rule, fully based on data to improve media delivery, is already a reality for large retailers and can bring expressive results for brands.
Also Read: Five Benefits of Building a Retail Media Network
Collaboration for Data Intelligence
With a few months until the end of the year and commercial dates with the potential to increase sales, analyzing the behavior of the user and purchases against the same dates in the previous year is fundamental when planning the investment in online advertising to ensure greater assertiveness and focus, accurate and, consequently, higher return on media investment in a quarter where digital advertising receives 30% more investment than the rest of the year. The market focuses on this period to sell more and activate more, as the public is prone to spending.
This particular year is due to the World Cup in November, which practically links other seasonal dates. Therefore, analyzing prices, distribution, most purchased categories, basket of products, frequency of purchases in the period, that is, the behavior of real consumers in previous years and consumption prediction, the correct direction to activate and find the right consumer, at the right time. in which he wants to receive a commercial or promotional advantage, so this should be the reason that the advertiser seeks data intelligence, with these data and profiles in hand, it is simpler to hit the target audience with the correct product offer, for which price and where.
The advanced and detailed analysis of purchases, compared with the user profile in a period of great retail impulse, generates more targeted offers. In this way, the advertiser (or CPG brand) knows in more detail where, how and why to invest in a particular product or category.
For this, agencies and advertisers can rely on technology to map a customer’s purchasing behavior, define a communication strategy to connect them at the right time with the right product, and make advertisements increasingly targeted and relevant. All this without relying on third-party data and with the campaign running on various online channels and in Carrefour’s media ecosystem.
LiveRamp and Carrefour Links: technology and data for greater assertiveness
LiveRamp’s solutions in partnership with Grupo Carrefour promote data collaboration between various retail players and positively impact the scenario of this market in Brazil. LiveRamp brings its data connectivity platform to the safe and effective use of information, which provides market intelligence for advertisers and agencies.
This platform, a global leader in data, allows companies and their partners to increase market intelligence by better planning, connecting and measuring the effectiveness of their marketing campaigns in an environment that prioritizes accuracy and assertiveness.
With the ability to ‘anonymize’ the data that demonstrate the purchasing behavior of a Carrefour customer, the technology provides strategic information for advertisers and agencies to plan their actions more assertively and obtain better results from their investments, explains Mattar.
In practice, it is possible to map a customer’s behavior, define a communication strategy to connect them at the ideal moment with the right product and make the advertisements increasingly targeted and relevant.
The platform can be used by industry and its agencies to address four universal use cases:
Analysis of consumption and consumer performance by providing access to a vast library of data and insights from Grupo Carrefour
Audience Building by enabling promotion to the right consumers, in the right channel, at the right time
Activate digital marketing campaigns across multiple online channels and Carrefour ecosystem
Measure real sales results from campaign activations, bringing effectiveness and a more accurate and accurate return on investment (ROI)
The technology ensures data collaboration in full compliance with the strictest standards of privacy protection, 100% GDPR-aligned. Even to enrich data from advertisers with the Carrefour database.
The media, whatever it is, in whatever channel it is used, aims to generate efficiency in sales and assertiveness in the public, this has become a data science, allied to partnerships and the latent creativity of the Brazilian, it has the right formula to leverage the traceable brand growth.
Also read: LiveRamp and Carrefour the start of a successful partnership
Success formula for Danone
Danone’s project with Carrefour Links used the collaboration of consumer data from Carrefour customers to discover new audience insights, changing its approach to media.
The manufacturer has successfully optimized audience segmentation and achieved a strong level of addressability and measurement, improving its consumer intelligence in the process. The techniques allow the brand to own its data and build direct relationships with consumers, something rare for consumer packaged goods (CPG) brands, but not an impossibility with this data collaboration we’ve built, says Mattar. As a result, Danone had a 17% increase in e-commerce sales and a 24% incremental impact on total sales measured through targeted media.
Also read: Danone boosts your Customer Intelligence and the addressable reach of your advertising with LiveRamp’s Safe Haven
