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The power of data in Retail Media - Adsmurai

Written by Paula Moreno | Oct 22, 2024 8:28:40 AM

In today's digital world, data is the most valuable resource, and Retail Media is no exception. Brands' ability to connect with consumers effectively is increasingly dependent on their ability to leverage behavioral data and Big Data. This data provides unprecedented insight into consumers' habits, preferences and needs, enabling the design of highly personalized and efficient advertising campaigns. 

TABLE OF CONTENTS


Big Data as a driver of Retail Media

Big Data has revolutionized the way brands plan and execute their advertising campaigns. In the context of Retail Media, massive data analysis allows retailers to gather detailed information about consumer behavior across multiple touch points: both online and in-store platforms.

Accurate and customized segmentation

Big Data enables brands to segment audiences with unprecedented precision. Through the analysis of demographic data, purchase histories, online interactions, previous searches and browsing patterns, advertising campaigns can be personalized to target the right consumers at the right time. This targeting capability improves both ad relevance and conversion rates as consumers receive messages aligned with their interests and behaviors.

Behavior prediction

Predictive analytics technologies based on Big Data make it possible to anticipate consumer behavior. For example, a brand can predict which products are most likely to be purchased based on past purchase patterns and seasonal trends. This makes it possible to optimize inventories, adjust advertising campaigns and even propose discounts or recommended products that fit the customer's immediate needs.

 

First-party data: retailers' strategic asset

In the Retail Media ecosystem, first-party data is the most valuable asset a retailer can offer brands. This data is what retailers themselves collect directly from their consumers, whether through purchases on their platform, interactions on their mobile apps or visits to their websites. Unlike third-party data, which is being progressively limited by regulatory and technological changes (such as the elimination of third-party cookies), first-party data provides rich and highly accurate information.

Personalization and relevance

First-party data enables brands to create highly personalized advertising campaigns by providing direct insight into consumer interactions and preferences. Retailers, who know the specific buying patterns of their users, can help brands target their ads to consumers who have shown interest in relevant products or categories. This personalization not only increases click-through and conversion rates, but also enhances the customer experience by delivering more relevant content.

Omni-channel integration

One of the great benefits of using first-party data is the ability to integrate the consumer experience across multiple channels. Retailers can combine data from online and in-store interactions, allowing brands to create campaigns that are tailored to the entire consumer journey. For example, a customer who searched for a product online but did not purchase it could receive a special offer when visiting the physical store or while browsing other products on the mobile app.

Loyalty and retargeting

First-party data is also key to retargeting and customer loyalty. Through historical purchase data, brands can re-engage consumers with complementary products, personalized recommendations or exclusive promotions. This type of campaign not only helps to increase sales, but also strengthens customer loyalty to the brand and the retailer.

 

How brands can harness the power of data in Retail Media

Brands have a unique opportunity to leverage both Big Data and retailers' first-party data to improve the effectiveness of their campaigns. Here are some key approaches:

Collaboration with retailers

To maximize the value of first-party data, brands must establish collaborative relationships with retailers. This involves working together to analyze data and develop campaigns aligned with the insights obtained. Retailers can share data on past campaign performance, customer behavior patterns or even loyalty program subscription data.

Real-time optimization

Retail Media, thanks to its direct connection to consumer behavioral data, allows brands to adjust their campaigns in real time. Through continuous analysis of performance data (clicks, impressions, conversions), brands can modify their ads, adjust bids and retarget their efforts to audience segments that offer higher conversion rates.

Focus on privacy and transparency

With the use of personal data comes great responsibility. Brands must ensure that their advertising campaigns comply with privacy regulations, such as GDPR in Europe or CCPA in California, to ensure that consumers feel comfortable sharing their data. In addition, being transparent about the use of that data can build trust and strengthen the relationship between brands and consumers.

 

The value of first-party data and server-side signals in Adsmurai

At Adsmurai, we are committed to the evolution towards an advertising environment based on first-party data and the use of server-side signals, a strategy that offers greater flexibility and efficiency without relying on third-party cookies. In a world increasingly focused on data privacy, this approach is not only essential, but is making a difference in campaign results.

Why is this approach crucial?

  • Minimizing reliance on third-party cookies: By focusing on proprietary data, brands can have greater control over the quality and accuracy of the data used, improving the reliability of segmentation and personalization of campaigns.
  • A valuable asset for privacy: In a context where privacy is increasingly relevant, having a solid first-party data infrastructure ensures that brands can remain competitive without compromising consumer trust.
  • Adsmurai One Tag: With our solution, companies can capture and manage data more efficiently, allowing them to adjust their advertising strategies with agility, improving both the effectiveness and performance of their campaigns.

Proven results: The success of betting on first-party data

Numerous companies are already experiencing the benefits of this strategy. Universae has managed to increase its leads by 9% and reduce its cost per lead (CPL) by 14%, while Stradivarius has increased its checkout volume by 82% and decreased its CPA by 28%.

In the era of Retail Media, data is not only a valuable resource, but a determining factor in the success of advertising campaigns. Big Data makes it possible to segment and predict consumer behavior, while retailers' first-party data provides crucial insights to create personalized experiences and improve ad relevance. Brands that harness the power of data will not only optimize their campaigns, but will also be better positioned to connect with consumers in a meaningful way and build long-term relationships.