What is the cause of this unexpected growth in retail media spend? Lesley Myers-Lamptey, Head of Commerce Strategy at mSix&Partners - the joint venture between independent agency network The&Partnership and GroupM - speaks on the evolution of retail platforms improving the customer experience and driving business outcomes.
In your opinion, what has been the catalyst for this explosive growth of retail media?
The catalyst for the explosive growth of retail media has been the pandemic. COVID-19 had a profound impact on the retail industry, which brought unprecedented levels of consumer demand for online shopping as bricks and mortar closed. Retail media is now an essential tool for brands to connect meaningfully with consumers and to help them navigate to the products that are right for them. By tapping into the wealth of data and insight from eCommerce platforms, brands are delivering targeted and relevant advertising that directly drives business outcomes.
Retailers are becoming media owners. How will this impact brand strategy and media planning?
The industry is fascinating thanks to the abundance of consumer data that retailers now possess. It's amazing how much information can be gleaned from a customer's shopping habits, such as whether they've recently become a parent, had a promotion, or are focused on improving their health. The power of combining retailer data with geo accuracy means that cookie deprecation shouldn’t hold marketers back. At mSix&Partners, we obsess with improving business outcomes for our clients through our Performance Mindset, which applies incrementality experimentation methods through the funnel for maximised ROI. Retailer data is essential to this approach, as it provides an accurate understanding of the omnichannel impact of our campaigns.
We also predict a shift towards offsite use of onsite retailer data, which will allow brands to leverage valuable shopper data within other media channels such as CTV and digital outdoor. Shoppable TV and livestream shopping will become more widely adopted and emerge as established subchannels of the retail media space. Additionally, retailers will begin to incorporate these engaging formats onto their platform which opens up more content and partnership opportunities. This is a game-changer for non-endemic brands who can now use retailer platforms and their data to reach audiences in new ways.
To drive incremental growth beyond natural demand, we're building advanced audience segmentation and targeting strategies based on customer value and propensity to purchase. The richness of retailer and shopper data that we draw upon to do this has step-changed our brand strategy and planning, ensuring media investment is even more accountable to our clients’ business outcomes.
What opportunities do AI and CX data offer brands in the customer journey?
AI fuelled by CX data will deliver the next level of personalisation. One example of this is the AI-powered chatbot, which provides customers with quick and efficient support, while also shining a light on where brands can further personalise to individual needs and challenges.
CX data can also help brands understand how people interact with products and services. By analysing customer feedback and behaviour, brands can adapt and innovate to exceed customer expectations. There are already some interesting innovators in this space already, such as Nibble, which allows visitors to negotiate the price of an item with AI - reminiscent of haggling at a market stall. It will be fascinating to see how generative AI and improvements in augmented reality will change the digital shopping experience, potentially making it more desirable than in-person.
Overall, I believe that the marriage of AI and customer data holds an unprecedented opportunity for improving the customer experience and we are only beginning to scratch the surface of its potential.
How can brick and mortar locations evolve so that they remain relevant in a digital world?
To remain relevant in a digital world, brick and mortar locations need to adapt and evolve. We believe that creating a seamless omnichannel experience is now a matter of hygiene, and we help clients create connected commerce strategies. Increasingly, digital behaviours are being used to help customers navigate offline for greater personalisation. Today retailers can only create the cohesive customer journeys that are expected of them by meshing physical and digital worlds.
Physical stores will always maintain the advantage of being able to offer a tactile and sensory experience. We encourage clients to focus on creating an inviting atmosphere, offering personalised service, and providing unique in-store experiences that leave a lasting impression. Overall, the key to remaining relevant in a digital world is to embrace technology while cultivating the unique advantages of a physical location.