Originally appeared on Total Retail
Retail media networks (RMNs) continue to demonstrate how they can be a powerful monetization driver for retailers, creating a win-win-win for everyone involved. Retailers can monetize their valuable first-party data as well as their online and in-store inventory, while customers benefit from timely, relevant content that enhances their shopping experience. At the same time, advertisers can reach highly targeted audiences at critical moments near the point of purchase
Achieving this type of success requires overcoming challenges around fragmented and incomplete first-party data, which can limit a retailer’s ability to organize and use their data effectively. Additionally, many RMNs lack the analytical capacity to generate customer insights, build addressable audiences, and accurately measure success. To realize the full potential of their platforms, RMNs need partners that provide complementary data, strong identity solutions, and the expertise to transform insights into actionable strategies. This allows RMNs to drive winning outcomes for themselves, marketers, and their customers.
Here are the five steps an RMN should consider when selecting the right partner.
1. Build an identity foundation
First, the right partner needs to be able to organize and clean customer data. Given the millions of customer records and data points that a retailer has, RMNs need to make sure their data is highly usable. Whether it is a known customer record or an unknown customer with incomplete data, partners should fill in missing information and connect fragmented customer records to a single profile. For example, RMNs need to know that a purchase made in-store is by the same customer who bought online. The best partners will then organize those profiles into households since targeting (and purchasing) is often done at the household level. Without a strong identity foundation future steps of segmentation, insights, audience creation, and activation will not be successful.
Experian identity
Experian’s identity solutions provide RMNs with a comprehensive and accurate view of their customers across both offline and digital environments. We clean an RMN’s first-party data and organize their customer records into households since targeting is often done at the household level and purchases are made at the household level.
Using Experian’s Offline and Digital Graphs we work with the RMN to fill in the missing information they have on their customers (e.g. name, address, phone number or digital IDs like hashed emails, mobile ad IDs, CTV IDs, Universal IDs like UID2 or ID5 IDs). This ensures that the retailers’ entire customer base can be reached – and measured – across devices and channels.
2. Segment your customers
An RMN’s ability to segment its customer base and derive insights depends on the availability and usability of their data assets – not to mention some serious analytical chops. Some RMNs will split their customers into different product segments based on what’s relevant to an advertiser. For example, a home improvement retailer may segment customers by who is buying DIY supplies versus improvement services. Other RMNs may develop custom segments from their customer data and third-party data sources, so that advertisers can personalize their marketing based on life stage, age, income level, geography, and other factors. Either approach is effective but requires working with a partner who has high quality data and deep analytical expertise to develop those segments.
Segment with Experian
Experian Marketing Data helps an RMN learn about their customer beyond their first-party data. With access to 5,000 marketing attributes, RMNs can fill in the holes in their understanding of a customer. We provide them with demographic, geographic, finance, home purchase, interests and behaviors, lifestyle, auto data and more. RMNs can use this enriched data set to create addressable audience segments.
3. Generate actionable insights about these segments
Once the RMN determines how they will segment their customers, they can utilize demographic, attitudinal, interest, and behavioral data from a trusted partner to develop a customer profile that compares its customers against a relevant sample of consumers. Here, the RMN will gain insight that will help them answer questions about its customers. Examples include:
- What age and income groups are more likely to purchase my product?
- What is the current life stage of my customers – do they have children, are they married, are they empty-nesters?
- Is price or quality more important to customers in their decision-making process?
- What sort of activities do my customers enjoy?
- How frequently do my customers shop for similar merchandise?
- What media channels do my customers use to get their information?
Expanded insights with Experian
With Experian’s advanced customer profiling, RMNs can go beyond basic customer segmentation. We build detailed customer profiles by utilizing accurate, attribute-rich consumer data, so RMNs can gain a more comprehensive understanding of their customer’s preferences, life stages, and purchasing behaviors. Having this insight enables the RMN to:
- Design a targeted email campaign promoting home essentials to recently married new homeowners.
- Develop a social media post announcing the opening of a new hardware store to users within a specific location interested in do-it-yourself products.
- Create brochures and flyers at a local community event tailored towards parents with small children that promote equipment for youth sports leagues.
4. Create high quality lookalike audiences
The RMN now knows what distinguishes their customers from other consumers and can create audiences that enable advertisers to run personalized marketing campaigns at scale. RMNs can do this in several different ways:
- Work with a data provider who can create custom audiences for the RMN (e.g., Ages 40-49 and Leisure Travelers and past purchase of travel item)
These custom audiences are created by joining multiple first- and third-party data attributes found to be significant in the customer profile or using machine learning techniques to develop a custom audience unique to the advertiser.
Custom audiences with Experian
With an enriched understanding of their customers, RMNs can create addressable custom audience segments, including lookalike audiences, for advertisers.
5. Expand addressability of audiences and activate on multiple destinations
Once audiences are created, RMNs will want to increase a marketer’s reach across on-site and off-site channels. With the right identity graph partner, an RMN can add digital identifiers to customer records that enable activation across media channels, including programmatic display, connected television (CTV), or social. RMNs should work with identity providers that are not reliant on third-party cookies. They should select partners that offer more stable digital IDs in their graph like mobile ad IDs (MAIDs), hashed emails (HEMs), CTV IDs, and universal IDs like Unified I.D. 2.0 (UID2).
Experian powers data-driven advertising through connectivity
Using Experian’s Digital Graph, RMNs expand the addressability of their audiences by assigning digital identifiers to customer records. Marketers will be able to reach an RMNs customers onsite as well as offsite since Experian provides several addressable IDs.
Audiences can be activated across an RMNs owned and operated platform as well as extended programmatically to TV and the open web through Experian’s integrations across the ecosystem.
Maximize your RMN’s revenue potential with Experian
Organizing customer data, segmenting customers, generating insights, creating addressable audiences, and activating campaigns are all critical steps for an RMN to realize that revenue potential. RMNs should select a partner that provides the data, identity, and analytical resources to create the winning formula for marketers, customers, and retailers.
Experian’s data and identity solutions are designed to help RMNs maximize their revenue potential.
Reach out to our team to discover how we can support your path to RMN success.
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The rise of streaming TV advertising is revolutionizing the marketing landscape, bringing together the best of traditional television's broad audience reach and digital's precise targeting capabilities. Marketers now have a new platform to explore, but it comes with its own set of challenges and opportunities. To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from AMC Networks, Disney, OMG, Paramount, Roku, and Experian. In this blog post, we'll explore the effectiveness of TV as a performance channel and audience targeting. TV as a performance channel Television has come a long way over the years. The evolution of linear TV to connected TV (CTV) is opening new possibilities for targeting and performance measurement, like what we're accustomed to in search and display. However, there's still a way to go. What's preventing us from fully realizing the potential of CTV? Let's explore what's holding us back. Three challenges Advertisers are captivated by CTV, a media platform that combines the best features of TV and digital advertising. With its unparalleled data and identity capabilities, alongside the immersive TV experience, it has the potential to be a powerful performance channel. However, we still face three challenges as performance dollars take center stage. "CTV is a valuable household device that provides direct audience insights. However, to gain a comprehensive understanding of the household and the individuals in the household, we need different techniques. The implementation of such methodologies from user level profiles to algorithmic inferences are still evolving across different companies." Louqman parampath, vp, product, roku Client education Performance marketers and agencies are still primarily focused on social and search. It's important to reassure them that CTV aligns with their established standards. Optimize KPIs We need to address the challenges around attribution and incrementality. We should optimize for the KPIs that performance marketers desire, which are different from the metrics commonly used in social media and search marketing. Results-driven interactions You should invest in interactive ad formats and novel experiences to give users clickable options that deliver the instant impact of performance marketing. While conversions and purchases can happen after seeing an ad thanks to view-through attribution, your goal should be to make video ad experiences feel like performance-based engagements. This transition is crucial to building trust and familiarity among performance marketers and agencies. Strategies to effectively reach audiences across different mediums There are various mediums to connect with consumers — TV, digital, and mobile offer multiple avenues. Which strategies should you prioritize? Data interoperability When it comes to buying unified audiences, programmatically is the easiest route. By prioritizing data interoperability, you can ensure a seamless buying experience across all screens. "At Disney, we focus on data interoperability with industry solutions such as The Trade Desk/UID2, Google PAIR, and Experian and the LUID, making it effortless to buy unified audiences programmatically across all screens. With an identity graph as the foundation of our tech stack, we help our clients reach their target audience across linear, digital, and streaming properties."jamie power, SVP, addressable sales, disney Advanced targeting capabilities in linear TV Don't limit your perspective on television consumption to traditional streaming platforms alone. While streaming is popular, it's equally exciting to see advanced targeting capabilities integrated into linear television. Viewer habits are shifting, with appointment TV becoming a thing of the past. Today, viewers have more options to watch a variety of programming, regardless of its age. "Streaming has become another platform for viewers to consume programming, and it's exciting to see digital targeting capabilities being applied to linear TV. Viewer behavior has changed, with more opportunities to consume programs at different times, so it's important to use targeting capabilities like linear addressable to effectively reach the audience across multiple channels."evan adlman, Evp, commercial sales & revenue operations, amc networks While live premieres still attract a substantial audience, utilize linear addressable targeting to reach viewers across channels. By doing so, you can ensure your message reaches the right viewers at the right time. The viewership landscape has diversified – it's time to adjust our strategies. Make TV viewing patterns predictable To bring predictability to the unpredictable and fragmented landscape of TV, advertisers can create products that simplify and unify the viewing experience. This allows users to effortlessly transition between episodes, resulting in a cohesive and engaging viewing journey. Watch our Cannes panel for more on the future of streaming TV advertising We hosted a panel in Cannes that covered the future of streaming TV advertising. Check out the full recording below to hear what leaders from AMC Networks, Disney, OMG, Paramount, Roku, and Experian had to say. Watch now Check out more Cannes content: Our key takeaways from Cannes Lions 2023 Insights from a first-time attendee Four new marketing strategies for 2023 The future of identity in cookieless advertising Maximize ad targeting with supply-side advertising Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. 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As a marketer, you know that the digital landscape is always changing. That's why it's important to make sure you're equipped with the right tools every step of the way – no matter how rapidly things change. You want to ensure your strategies and tactics stay ahead of any changes in technology or consumer behavior, so what new marketing strategies should be in your toolbox in 2023? Discover what industry leaders from Experian, Adweek, FreeWheel, Tubi, and Instacart had to say about what should be in every marketer's toolbox in 2023 at Cannes. Keep reading to learn the top four new marketing strategies you need in your marketing toolbox for 2023 and beyond. 1. A plan for signal loss The first item you should have in your marketing toolbox is a plan for signal loss. The phasing out of third-party cookies presents both a challenge and an opportunity. This shift not only poses challenges but also opens up opportunities for alternative strategies. On the one hand, it makes it more difficult to track users across channels and measure the effectiveness of marketing campaigns. On the other hand, it forces marketers to focus on building relationships with their customers and collecting first-party data. Consumer behavior is changing When we consider signal loss in a traditional sense, we think of the implementation of iOS 14, where we couldn't track click-based data from campaigns. It's important to reflect on the fact that the paid media ecosystem needed to adapt to new consumer realities. Younger demographics are less likely to click on ads and instead engage in video environments. They discover brands through platforms like TikTok or Instagram. It's crucial to understand how people behave, where they discover products, and where influence takes place. This understanding becomes even more vital when targeting a young audience demographic. Four things to consider when planning for signal loss There are four things you should consider when building out a plan to address signal loss and fragmentation. Channel diversification You need to reach your customers on the channels where they are already spending time, such as social media, email, and your own website. You should work with platforms that have first-party data to understand how your customers interact with your brand. Data privacy You need to be transparent about how you are collecting and using customer data. You should also anonymize data whenever possible. First-party data First-party data is now more crucial than ever, awakening its importance in shaping our actions. The combination of channel diversification and first-party data will be essential in the years to come. By focusing on these two areas, you can build stronger customer relationships and create more effective marketing campaigns. Contextual targeting Contextual targeting is emerging as a viable method to deliver more relevant content to your intended audience. By embracing signal loss, the alternative new marketing strategies that are emerging as a result, and adopting a privacy-centric mindset, you can navigate cookie deprecation. 2. Collaboration The second item you should have in your marketing toolbox is collaboration within the AdTech ecosystem. To address signal loss and changes in privacy, moving toward a more collaborative, holistic marketing ecosystem is key. Two ways we can achieve better collaboration Here are two ways we can create better collaboration in the AdTech ecosystem. Enable interoperability We should aim to create an ecosystem that fosters collaboration between marketers, publishers, advertisers, ad tech companies, and more. When we enable seamless interoperability, everyone can use the best data available. Use clean rooms We are witnessing a growing trend of collaboration between parties, where buyers and sellers share data in these secure environments. Clean rooms can help us develop data strategies in a controlled manner. 3. Generative artificial intelligence (AI) The third tool you should have in your marketing toolbox is generative AI. Benefits of implementing AI There are three main benefits to implementing AI within your marketing strategy. Enables creativity Although AI and machine learning have long been part of our toolbox, this moment marks an extraordinary acceleration that expands our capabilities. Copywriters can now create visuals, and art directors can write compelling copy. It's an extension of what we're capable of, potentially alleviating the burden of repetitive tasks and enabling more time for collaboration, creativity, and strategic thinking. By embracing generative AI, we can preserve valuable talent, prevent burnout, and invigorate the advertising industry. Enables more personalization The rise of personalization with AI has significantly increased the demand for tailored experiences. People now willingly allow AI agents to read their emails, hoping for quicker and easier responses. This shift signifies a change in the previous emphasis on privacy and consumer preferences. Consumers now see the value in exchanging personal information for more targeted services. E-commerce has already witnessed this transformation with customized ads based on individual preferences and behaviors. For instance, if a CPG brand notices you're not purchasing meat, they won't serve you ads for meat products. However, it's crucial to strike the right balance between being useful and intrusive. Users want relevant information that aligns with their needs without feeling intruded upon. As we navigate this path, we must ensure that personalization remains beneficial and respectful of user preferences. Helps drive impactful results and customer satisfaction The tool is a perfect analogy for improving your job performance and business operations. Having the right data input to feed the machine is crucial, just like using the right ingredients to cook a perfect meal. Keeping the consumer in mind throughout the process is key. You can ensure customer satisfaction by putting the right ingredients in and allowing the machine to work its magic. Scaling up, repeating, and refining the process will drive impactful results. 4. First-party data The fourth item you should have in your marketing toolbox is first-party data. Benefits of implementing a first-party data strategy Moving from a third-party cookie world to a first-party cookie world brings about significant transformation. Here are two benefits of implementing a first-party data strategy. Greater accuracy The shift to first-party cookies ensures greater accuracy, enabling us to establish critical mass through secure partnerships. This empowers us to strengthen and refine our personalization capabilities, much like Amazon's ability to anticipate customer needs before they arise. When you can predict and understand customer behaviors with remarkable precision, you can reach your customers with tailored and creative ads. "Building a robust first-party data strategy should be a central discussion for marketers, involving key stakeholders such as CEOs and CMOs. Quality and precise data are paramount, and while first-party relationships with consumers form the foundation, even established brands benefit from strategic partnerships. Together, we can unlock the potential of accurate and meaningful data-driven marketing."jeremy hlavacek, cco, experian Identify high-growth audiences First-party data can help you identify audiences with the greatest growth potential, ultimately optimizing marketing dollars for greater efficiency. 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It's back-to-school season. Knowing your target audience is an essential piece of planning a successful back-to-school marketing campaign. To get the most out of your marketing investment this back-to-school season, it’s important to understand how to identify and segment back-to-school shoppers so you can make sure that the right message reaches the right group at the right time. In this blog post, we'll cover how you can segment your target audience to create and deliver custom messaging tailored to individual groups. We'll discuss segmentation methods that uncover: Who they are Where they live What type of person they are How they behave and spend Here are our tips to accurately define and target your back-to-school marketing audience. Maximize back-to-school marketing with customer segmentation Customer segmentation is the process of dividing your audience into smaller groups based on common characteristics such as demographics, behaviors, psychographics, geographics, and more. The purpose of customer segmentation is to create a more personalized and effective approach to marketing. By understanding the unique needs and preferences of each segment, you can tailor your messaging, campaigns, and content to resonate with your customers on a deeper level. Benefits of customer segmentation Three benefits of customer segmentation include: Improved audience targeting Higher engagement rates Increased ROI Instead of addressing your entire customer base with generic messaging, segmentation enables you to deliver custom campaign messaging that speaks directly to each group. This personalized approach helps build trust and loyalty with your customers over time. Customer segmentation also allows you to better understand your customers, their motivations, and pain points, ultimately leading to more effective marketing campaigns. Types of customer segmentation When it comes to segmenting your customers, there are several methods to consider. By experimenting with different approaches, you can find the best fit for your business. Keep in mind that the most effective customer segments will differ depending on the industry. Let's review four types of customer segmentation that you can implement as part of your back-to-school marketing strategy. 1. Demographic segmentation Demographic segmentation categorizes consumers into groups based on shared demographic characteristics such as age, gender, income, occupation, marital status, and family size. For example, targeting college students during the back-to-school season with promotions on laptops is likely to be more effective than targeting retirees who may have less interest in such products. 2. Behavioral segmentation Behavioral segmentation divides customers into groups based on their demonstrated behaviors. This method sorts customers by their knowledge of products or services, attitudes toward brands, likes/dislikes about offers, responses to promotions, purchasing tendencies, and usage of products/services. Behavioral segmentation can help you identify the highest-spending customer segments, so you can budget and target more effectively. Through this type of segmentation, you can analyze each group's patterns, discover trends, and plan informed marketing moves for the future. In a back-to-school campaign, you could use behavioral segmentation to identify students who prefer to shop locally. You could then target students who value supporting local businesses and emphasize the importance of buying from local retailers during the back-to-school season. 3. Geographic segmentation Geographic segmentation involves dividing your target market into groups based on their physical locations. Geographic segmentation reveals aspects of a local market, including physical location, climate, culture, population density, and language. In a back-to-school campaign, you could use geographic segmentation to identify target audiences in colder climates who may be more interested in winter clothing and gear. You could also use geographic segmentation to target students living in college towns with messaging that speaks directly to campus life. 4. Psychographic segmentation Psychographic segmentation groups customers based on psychological factors such as lifestyle, interests, personality, and values. In a back-to-school campaign, you could use psychographic segmentation to target students who value sustainable practices, promote eco-friendly products, or offer incentives for recycling and reusing items. Watch our 2024 video for tips from industry leaders for back-to-school In our new Q&A video with Experian experts, we explore changing consumer behaviors surrounding back-to-school shopping in 2024. In the video, we discuss: Anticipated shifts in consumer behaviors and shopping habits Tactics we predict marketers will employ to navigate signal loss Which channels will be the most successful And more! Watch now Get in touch Latest posts