Retail Media Demands A New Organisation Dynamic
Lyndall Campher, former media director at L’Oréal and group director at UM, Mindshare and MediaCom explains that retail media demands a new kind of organisational layout than traditional media.
There have been a plethora of articles written about retail media, especially since the Stanley Morgan Report was released in December last year.
It has been predicted by the IAB that the size of the market will grow from some $850 million to approximately $3 billion over the next few years, possibly as soon as 2026.
Morgan Stanley posited that this growth will be at the expense of traditional media to the tune of $1.1 bn, which has aroused much comment.
Some other aspects of this trend deserve consideration as companies learn to maximise the effectiveness of all their communications.
The Importance of Dovetailing
We anticipate that there will be a further blurring of the lines between what we used to call Above-the-Line media (ATL) which was focused on broad mass reach media e.g. Television, radio etc. to Below-the-Line media (BTL) which tended to be more narrow-cast; media options such as retailers’ websites, catalogues, and instore audio to drive sales. Digital communications, initially a narrowcast medium, has evolved into broadcast media and now forms an integral part of ATL.
The status in most marketing organizations is that the sales teams undertake the negotiations to take up options to spend on retailers’ media as they negotiate shelf space, retailer promotions, gondola ends etc. Depending on the organization, there is full or limited participation by the marketing team, media agency or internal media department.
A lack of synchronicity can result in too much emphasis on certain target audiences and too little on others.
The implication is that organizations are going to have to change their way of undertaking negotiations with retailers. They need to involve assistance from marketing, media agencies and media divisions to dovetail all communications and so achieve the best possible reach and frequency combinations.
Retailer Offering Fragmentation
The retail media landscape in Australia has become more fragmented as illustrated by the different retailer set ups below: Now, advertisers have to deal separately with a whole list of retail media platforms:
- Coles 360
- Cartology (Woolworths)
- MixIn (Dan Murphy’s and BWS screen network)
- Myer Media Network
- Amplify (David Jones)
- Catch Media Network
- Kmart Group Media
- JB Hi-Fi Solutions
- Harvey Norman Media
- Officeworks Media
- Bunnings Warehouse Media Centre
- Chemist Warehouse
- Priceline.
Retailer ads can take on very different forms or formats, the list below from the Retail Doctor Group includes what is available to advertisers currently:
- Audio Ads: tapping into the rise of podcasts and music streaming.
- Dynamic Creative: ad content dynamically updating in real-time, based on the shopper and personalised context.
- Signed Media: retailers forming exclusive partnerships with brands in certain categories.
- Digital OOH: digital billboards, signage, and mall media offering bold impact.
- Voice Commerce: ads on voice assistants guiding consumers to purchase.
- Connected TV: streaming ads reaching cord-cutter audiences.
- Shoppable Video: interactive video seamlessly bridging entertainment with shopping currently being pioneered by News Corp.
- User Generated Content (UGC): customers co-creating compelling digital content around products.
- Retail Media APIs: open APIs allowing advertisers to directly tap into retail media platforms.
- Business Messaging: leveraging mobile messaging apps for customer engagement.
- Product Sampling: brands providing free product samples to key retail media audiences.
- Influencer Marketing: Collaborating with social media to promote products.
- QR codes: using scannable codes to unlock deals, product info, shopping features.
One could also add in Affiliate Marketing which is an advertising model in which a company compensates third-party publishers to generate traffic or leads to the company’s products and services. The third-party publishers are affiliates, and the commission fee incentivises them to find ways to promote the company.
As the above examples demonstrate, the possibilities with retail media which span the omnichannel spectrum are extremely varied. To stay ahead of the curve, retailers will need to “test and learn” different formats as an example, e.g. Live streaming which to date has not had much traction locally but is set to grow, based on Chinese retail experience as have TikTok shops.
JBPs and APIs
The one area that is becoming critical to the success of retail media is the signing of JBPs (Joint Business Partnerships) between advertisers and retailers whereby shopper data and behavioural data of customers can be negotiated as part of the value exchange between retailer and advertisers. In addition, APIs (application program interfaces) should be included in the JBPs so that advertisers can have direct access to the reporting of sales and the ROI delivered: thereby owning ‘the last mile’ of the shopper journey. The current situation is that there is little, or no reporting being delivered to advertisers.
Advertisers need reporting at all stages of the consumer journey: from awareness to interest to consideration, desire and, finally, sales of the products or brands.
It is important for advertisers to ensure that their advertising agencies are involved so that retail media is an integral part of the media mix and can be used to dovetail brand building with retail media or alternatively, use retail media to focus on different segments of the audience, whilst ensuring coverage of a different segment. As an example, most retailers still rely on linear TV to reach the all-important grocery buyers and older segments of the market, whereas the brand advertising could focus on the younger element by using TikTok or gaming.
The rise of retailer media in terms of money and sophistication necessitates adaptation and increased skills across the spectrum of advertisers, media agencies and retailers to maximise effectiveness.
Please login with linkedin to comment
Retail mediaLatest News
TV Ratings 29/4/24: Farmer Wants A Wife And Lego Masters Lock Horns In Overnight’s Battle
Who won the battle of the big guns - Lego or Farmer Wants A Wife? One thing's for sure, it wasn't Great Train Journeys.
Nielsen Data Reveals Brands Spending Big To Attract Aussie Tourists
Nielsen Ad Intel data has revealed that the travel and tourism industry spent more than $153 million on advertising in Australia in Q1, 2024 – an increase of 8 per cent from the previous quarter, with TripADeal the biggest spender, followed by Virgin Australia, then the Flight Centre-owned Ignite Travel. As many Australians return from […]
IAS Awarded New Responsible AI Certification From Trustarc
Integral Ad Science tossing up over the mahogany or teak frame after being awarded TRUSTe Responsible AI Certification.
AWARD Calls For Hall Of Fame Nominations
B&T's noms for AWARD Hall of Famer includes Louis The Fly, Chums' talking Scottie dog & Mumbrella's coke dealer.
Havas Red Wins PagerDuty PR Account
Havas Red wins PagerDuty's PR. And judging by B&T having to Google PagerDuty, it could probably do with some help.
ACA Poised To Release Results Of 2023 Create Space Census
The Advertising Council unveils date for its census results. Hey, why not coincide it with an office lamington drive?
Why Fear Is Essential To Fernando Machado’s Creativity
If there's anyone B&T loves to chat to, it's fabled marketer Fernando Machado. Although the 5am time difference sucks.
Superdry Drafts AFL’s Patrick Lipinski For New Campaign
B&T fast regretting that poncho we just bought, as it appears the puffer jacket returns as winter's hottest trend.
Elon Musk vs eSafety: Legal Experts Warn That ‘Rogue Operators’ Like X Are Unlikely To Win Federal Court Battle
If this legal stoush boils down to who can afford the better lawyers, B&T's backing Mr Musk every single time.
Amy Poehler Presents First Look At Inside Out 2 At Vivid Sydney 2024
Vivid isn't about freezing your arse off while looking at lights on a wall, as you'll learn with this Amy Poehler news.
Mutinex Launches DataOS Improving Data Warehousing & Quality For MMM Marketers
Work in marketing? Does your data warehousing resemble a teenager's bedroom? Here's a Marie Kondo-approved read.
IMAA Celebrates Three Years Of Group Trade Credit Insurance Deal
Are you a struggling indie? Thinking of firebombing the building for the insurance money? IMAA has you covered here.
Adam Sandler Seemingly ‘Slams’ Ukraine In Pro-Kremlin Campaign
Host of A-list celebs caught slamming Ukraine's president. Thankfully it does have the Milli Vanillis about it.
New Marketing & Comms Agency For Defence & Aerospace Industry Takes Flight
As painful as this is to say, judging by current world events, the bomb & tank industries must be in rude health.
Opinion: Do Punters Want To Wear Your Brand?
This columnist asks do punters want to wear your brand? B&T'd say yes if you were Nike, no if you were Anusol.
WiredCo Builds Portfolio With Appointment To G.J. Gardner Creative Account
WiredCo 'cements' its relationship with home builder G.J. Gardner. Did you see what B&T cheekily did there?
Keep Left Reveals ‘Strategically Assembled’ Strategy Team
PR agency announces serious upgrade to its strategy offerings. Thankfully stops short of calling them Delta Force.
Initiative’s Michael Chong: What Do Mountaineering, Media & Marketing Have In Common?
Yes, B&T's running an inspiring mountaineering story. And this from people who won't come to work if the lift's broken.
CMOs To Watch: DrinkWise’s Part Time Builder, Part Time Marketer, Nathan Kent
Despite his love of DIY, B&T can't see Drinkwise's Nathan Kent in any "you can get it" VB ads anytime soon.
Mari Kauppinen Pops Up As MD Of ITA Group ANZ
Mari Kauppinen set to bring some zing, some song and some va-va-voom to her new role at ITA Group.
“It Is Getting Better But At A Glacial Speed”: PR Guns On Shaping A More Diverse Media Industry
B&T has a love-hate relationship with PRs. Love if they take us for a boozy lunch. Hate when you send releases as PDFs.
GoTransit Media Group Unveils The Power Of Regional Transit Advertising
Need reminding lots of people live outside the Surry Hills enclave? It's the regionals &, yes, they have almond milk.
Slew Of Promotions For Special Senior Creative Leadership Team
Special announces a slew of promotions in its creative team. And, no, they didn't order Uber Eats to celebrate.
Kantar: AVOD Subscribers Double In 12 Months
Study finds Aussies happy to watch ads on their streaming services. Or, are they just putting the kettle on more often?
Val Morgan Digital Exceeds All Campaign Uplift Benchmarks Via A 12-Month Brand Metrics Study
Val Morgan announces it has exceeded all its campaign benchmarks. Still can't get under an hour for the City To Surf.
Australian Retirement Trust launches monster of a campaign, by M&C Saatchi and Bohemia
Get offered a seat on the bus today? Knees creak like an old pirate's galleon? This retirement ad may be of interest.
Print Audits To Discontinue As Audited Media Association Of Australia Pivots To Support Influencer Marketing
Is it just B&T or are audits in the media industry suddenly becoming murkier than Roxy's husband's tax returns?
News Corp Australia Launches 2024 National Education Advocacy Initiative With Expanded Program
News Corp set to shine a light on the nation's schools in new series, giving illegal bikie gangs a well-earned rest.
Decoding The Consumer Maze: Urban List Report Reveals How Modern Shoppers Spiral From Discovery To Purchase
Latest report unravels a shopper's journey from the joy of discovery through to a nasty letter from a debt collector.
Cosmo Returns To Australia!
Ever get the feeling we've weirdly warped back to 1988 at the moment? Confirm it with the relaunch of Cosmo in print.
People & Culture Consultancy Human Kind Collective Launches To Plug HR Gap For Media Agencies
Does the very mention of HR have you struggling to remember last year's Christmas party? Get the sweats with this news.
‘We Want To Be A Growth Partner, Not Just A Media Buyer Or Someone That Makes Ads’ – Bohemia Boss On Agency’s Ambition
B&T's chatting with Bohemia boss Paul ‘Hutch’ Hutchison. Although we do think 'the dagger' a far superior nickname.
Initiative’s Geoff Clarke: ‘Youth Hits Targets With Enthusiasm, Experience Hits The Targets You Can’t See’
Initiative’s CCO Geoff Clarke on the value of experience in agencies. Not to mention quoting lines from Pulp Fiction.
The Iconic Teams Up With 5 Aussie Athletes For Latest Campaign
Fashion label brings in the athletes for new campaign, many of whom appear to have prepped with re-runs of Zoolander.
Seven West Media Secures New Director Of News & Current Affairs
After a tumultuous few weeks, Seven unveils director of news & current affairs. And B&T never uses tumultuous lightly.
Seven Network Expands NSW Sales Team With Two New Group Business Directors
Seven ramps up its NSW sales team. Both of whom are well versed in pronouncing Manu Feildel's croque-monsieur.