At MikMak, we’re often asked to share our point of view on the impact of retailer-specific data, such as product SKU inventory, purchase intent, and basket-level sales, on advertising and marketing strategies. Given that by-retailer performance is a core component of our Insights Platform, we are big believers in its power in not just driving advertising and media strategies, but business decisions as a whole. That being said, this topic of discussion also often leads to unpacking the evolving dynamics between retailers and advertisers, many of which still have much room for improvement. Here’s a quick summary of the trends we see today and things to keep in mind.
The Rise of Retail Media
Retailer data has always been a cornerstone of business operations, but its availability and breadth have expanded dramatically in recent years with the rise of retail media. Retailers are increasingly keen to leverage this data beyond traditional retail functions as they realize how much power these insights hold. The tailwinds of retail media, propelled in particular by the looming depreciation of third-party cookies, have made retailer data the primary form of first-party data that can be monetized for advertising. This shift has fundamentally changed the relationship between retailers and advertisers, with retailers now wielding considerable influence over advertising tactics.
Collaboration is Key
A collaborative approach between retailers and advertisers is central to effectively utilizing retailer data and insights in advertising. By tapping into valuable datasets such as product SKU inventory and basket-level sales, and combining them with psychographic and demographic insights on consumer behavior and preferences, advertisers can align consumer demand with available inventory, driving tangible results for both parties. Platforms like MikMak facilitate this collaboration by enabling multi-retailer checkout and providing comprehensive analytics to inform advertising strategies, across brands’ entire digital media mix, including retail media.
Overcoming Challenges & Seizing Opportunities
Despite the wealth of opportunities presented by retailer data in advertising, challenges remain. Retail media data standardization emerges as a significant hurdle, akin to the early days of social media advertising. Siloed data, lack of rules in measuring performances, and limited self-serve tools hinder scalability and efficiency. Addressing these challenges requires ongoing dialogue and concerted efforts to establish industry standards.
Although challenges remain, the potential benefits of leveraging retailer data in advertising are substantial. Advertisers can gain a competitive edge by optimizing performance against peers, improving marketing effectiveness, and bringing new products to market with precision. Real-world success stories underscore the efficacy of retail-data-driven advertising across regions, with MikMak brand partners like Biocodex and BodyMark by BIC achieving notable results.
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Looking Ahead
As the retail landscape evolves, integrating retailer data into advertising strategies will become increasingly indispensable. By fostering collaboration, overcoming challenges, and seizing opportunities, businesses can unlock the full potential of retailer data, driving growth and innovation in advertising campaigns. Retail media standardization will contribute to a more holistic understanding of advertising investments, and to a more equitable relationship between retailers and advertisers with regards to retailer data insights. As a result, both retailers and advertisers will benefit from better capacities to optimize their marketing to drive their common business forward.
MikMak helps the world’s leading brands use proprietary, retailer-specific consumer insights in joint planning discussions to strengthen retailer relationships and unlock shelf space and media value. To learn more, schedule a demo here.
