The retail media loop
Why retailers became ad companies: they know what people actually buy, and can prove an ad led to a sale.
The retail media loop
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Retailers know what you buy
Every loyalty card swipe and online order is first-party data: what was bought, when, and by whom.
- Retailers know what you buy: Every loyalty card swipe and online order is first-party data: what was bought, when, and by whom.
- Brands pay to reach those shoppers: A cereal brand pays the retailer to advertise to people who buy breakfast foods. The retailer runs a retail media network.
- Ads on the store itself: Sponsored products appear right where people shop, at the moment of decision.
- And off the store: With off-site retail media, the retailer’s audiences are used to target ads on other websites, apps and streaming TV.
- Closing the loop: Because the retailer sees both the ad and the purchase, it can report sales driven by the campaign: closed-loop measurement. That proof is why budgets moved here fast.
Step by step
- Retailers know what you buyEvery loyalty card swipe and online order is first-party data: what was bought, when, and by whom.
- Brands pay to reach those shoppersA cereal brand pays the retailer to advertise to people who buy breakfast foods. The retailer runs a retail media network.
- Ads on the store itselfSponsored products appear right where people shop, at the moment of decision.
- And off the storeWith off-site retail media, the retailer’s audiences are used to target ads on other websites, apps and streaming TV.
- Closing the loopBecause the retailer sees both the ad and the purchase, it can report sales driven by the campaign: closed-loop measurement. That proof is why budgets moved here fast.