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Four segmentation methods and when to use them in marketing

Published: August 14, 2025 by Experian Marketing Services

Four segmentation methods you need to know

Marketing without segmentation is a lot like shouting into a crowded room and hoping the right person hears you. Without a clear way to communicate in a noisy marketing environment, your message gets lost in the mix.

With segmentation, you can identify your target audience, speak to their needs, and deliver the right message at the right moment. Companies that use segmentation are 130% more likely to understand customer motivations, resulting in more effective campaigns and deeper audience relationships.

In this article, we’ll break down four of the most effective customer segmentation methods, when to use each, and how Experian’s audience solutions can help.

What is segmentation in marketing?

Segmentation is the process of splitting a large audience into smaller groups that share similar traits, like demographics, location, behavior, or firmographic characteristics. As a marketer, these segments enable you to choose channels, messaging, and offers that resonate with each group.

Whether you’re targeting new homeowners in Texas, loyalty shoppers in retail, or small business decision-makers in finance, segmentation helps you stand out to them and get results.

Why should marketers segment their audiences?

Effective audience segmentation fuels accuracy, performance, and personalization at scale. Here’s why you should invest your time and marketing budget in honing your audience segments.

Maximize your marketing ROI

Nobody wants to waste money talking to the wrong crowd. Using various methods of segmentation, you can focus on those who want to hear from you — and the payoff can be huge. For marketing channels like email, segmentation can drive up to 760% more revenue than non-segmented campaigns. The more targeted your message, the better the return.

Create a unified omnichannel strategy

Segmentation helps ensure that every channel, from email and social media to display, SMS, and direct mail, operates from the same playbook.

Once you define your target audience segments, you also need a trusted identity partner to sync them across platforms and environments. This ensures you can deliver consistent, personalized experiences at every touchpoint and your audience receives the same message in the proper context, regardless of where they engage.

Strengthen customer loyalty

Roughly 75% of consumers are loyal to brands that “get” them. When you strive to understand your customers, they’re more likely to stay. Segmentation enables you to personalize communications based on your target segment’s values, behaviors, or preferences, encouraging repeat business.

Expand into new markets

With segmentation, you can analyze existing customers to identify common traits and use that data to pinpoint similar groups in new regions or markets. For example, if your top customers are middle-class parents in suburban areas, you can target lookalike segments in other cities with tailored messaging.

This makes it easier to expand with confidence, knowing you’re reaching people who are more likely to convert.

Lower customer acquisition costs

Rather than forcing you to cast a wide net, segmentation enables you to focus your budget on high-potential audiences across channels, reduce acquisition costs, and minimize wasted spend on low-intent audiences.

Four segmentation methods and examples

Let’s look at four different methods of market segmentation. We’ll define each, share when to use them, and give real-world examples to help you apply them.

1. Demographic segmentation

Demographic segmentation breaks your audience into groups based on gender, income, age, education, marital status, occupation, and household size. It’s one of the most foundational segmentation methods because it’s easy to implement and often tied directly to buying behavior.

Demographic data makes it easier to get the tone, offer, and channel right from the start. And when you combine demographic segmentation with other segmentation methods, such as behavior or location, the impact multiplies.

When to use it

Use demographic segmentation when your product or service is clearly more relevant to people in a specific life stage, income bracket, or household type.

Among all methods of market segmentation, demographic data is often the easiest starting point. It’s especially effective for industries such as financial services, healthcare, education, retail, and others, where consumer needs change based on demographics.

Examples

As a real-world example, a health supplement company used Experian data to segment its ambassador program audience into four demographic groups based on lifestyle and household makeup. These included younger singles, value-seeking families, high-income spenders, and older empty nesters.

Applying these insights at registration allowed the brand to deliver personalized, channel-specific communications that boosted acquisition and retention. The approach led to stronger engagement and more meaningful customer connections.

2. Geographic segmentation

This method of market segmentation categorizes people by location, including country, region, state, city, zip code, or even climate. It’s a simple yet effective way to tailor your marketing, as location often influences everything from lifestyle and language to shopping habits and product needs. It’s most often used among brands with physical locations or region-specific campaigns.

Whether you’re promoting snow boots in Colorado or sunscreen in California, geographic segmentation helps you stay relevant to the local context.

When to use it

Geographic segmentation is ideal when your offer or message changes depending on climate, culture, availability, or local regulations. It’s also helpful for planning market expansion or testing the performance of different methods of market segmentation across regions.

Examples

One home furnishings retailer partnered with Experian to understand how customer needs varied across store locations. Using a mix of client data and Experian demographics, we segmented stores based on their surrounding customer base, like urban, white-collar shoppers in metro centers versus lower-income households in more remote cities.

These insights enabled the retailer to tailor inventory, marketing strategies, and ad copy for each store type, resulting in more relevant customer experiences.

3. Behavioral segmentation

Behavioral segmentation centers on how people live their lives — their interests, habits, and decision-making patterns. It includes factors like past purchases, engagement frequency, brand loyalty, product usage, browsing patterns, and responsiveness to offers or promotions.

Among all of the segmentation methods, this one provides insight into intent, helping you go beyond who your audience is to understand what they do. You can use behavioral insights to re-engage former customers with relevant offers, reward loyal buyers with personalized perks, or guide high-intent shoppers toward conversion with timely nudges.

When to use it

Behavioral segmentation is best when you want to personalize based on intent, habits, or engagement stage. It’s particularly useful for retention, reactivation, or cross-selling strategies.

Examples

In practice, a national big-box retailer partnered with Experian to better understand customer behavior during grocery store visits. The goal was to identify distinct “trip missions” that could drive category trial and increase basket size. We analyzed everything from basket contents to customer composition and segmented visits into 11 unique missions.

For example, the “All Aisles Online” segment represented large households (often homeowners with families) stocking up on household staples through online orders. In contrast, the “Marketable Mission” segment captured smaller, likely renter households making quick trips for non-essentials.

These behavioral insights empowered the retailer to adjust promotions based on the intent behind each visit, strengthen customer relationships, and drive growth.

4. Firmographic segmentation (B2B)

Firmographic segmentation is like demographic segmentation for businesses. It groups B2B audiences based on attributes such as annual revenue, location, company size, industry, and organizational structure. You can also segment by job title or decision-maker role to better target key stakeholders.

This method is great for aligning your messaging, sales strategy, or product offerings with the unique needs of various business types. A startup in the tech sector will likely respond to a very different pitch than an enterprise manufacturer, and firmographic data helps you speak to both with precision.

When to use it

Use firmographic segmentation when marketing to other businesses, especially when your product or service has different benefits depending on business size or sector.

Examples

Recently, a B2B client partnered with Experian to gain a deeper understanding of the revenue potential of their existing business customers. Using firmographic data, we segmented the client’s customers into distinct groups based on the characteristics most strongly tied to spending behavior.

For each segment, we calculated potential spend, defined as the 80th percentile of annual spend within that segment. This allowed the client to identify high-value accounts with untapped growth potential.

For example, one customer, ABC Construction, had spent $4,750. But based on their segment’s profile, their annual potential was $9,000. That insight revealed a $4,250 opportunity to deepen the relationship through more targeted marketing and sales efforts.

Best practices for market segmentation

Regardless of the segmentation method you use, the following best practices will help you maximize the benefits of your efforts.

Start with clean, reliable data

Segments are only as good as the data behind them. If your data is outdated, inaccurate, or incomplete, your segments will result in ineffective targeting and a wasted budget. Utilize accurate, compliant, up-to-date sources like Experian Marketing Data, ranked #1 in accuracy by Truthset, to ensure your targeting is on point.

Test and refine segments continuously

Business goals, market conditions, and behaviors are constantly changing. What worked last month or even last week might not work today. By adjusting your segments over time, you make sure your marketing stays relevant, focused, and effective. Use A/B testing, performance metrics, and audience analytics to iterate on your segments and improve results over time.

Align segments with personalized messaging and offers

Each segment has distinct needs, preferences, and motivations, which means generic messaging won’t resonate effectively. Once you’ve built your segments, personalize your creative, copy, and offers to appeal to each group and increase the likelihood of engagement and conversions.

Integrate segmentation across all platforms

If someone sees one message in an email and a completely different one in an ad or on your website, it creates confusion and weakens trust. From CRMs and email platforms to ad tech and analytics tools, make sure your segmentation method is applied consistently across every channel to improve performance and build a cohesive brand experience.

Segment your audiences with Experian

Effective audience segmentation is at the heart of every successful marketing strategy, but in this fragmented, privacy-conscious landscape, grouping your audience into meaningful, actionable subgroups is more challenging than ever. That’s where we come in.

With coverage of the entire U.S. population, Experian helps marketers define and categorize broad audiences into precise segments using rich data on demographics, behaviors, financial profiles, and lifestyle traits. These insights make it easier to personalize messaging, optimize media spend, and drive better outcomes.

From ready-to-use syndicated audiences to custom segments and even Contextually-Indexed Audiences that align targeting with content, Experian offers flexible segmentation solutions that perform across digital, TV, programmatic, and social channels.

In our most recent release, we introduced over 750 new and updated audience segments across key categories, including a brand-new category for Experian, giving marketers more accurate, behavior-based targeting options than ever before.

  • 135+ new CPG audiences, a brand-new category for Experian, built from opt-in loyalty card and receipt scan data
  • 240+ new automotive audiences covering ownership and in-market shoppers
  • 100+ new high-spending behavior audiences focused on specific merchant categories
  • 24 new wealth and income segments with refined household net worth tiers
  • 13 new lifestyle-based housing audiences for family- and household-focused targeting
  • 250+ refreshed financial segments with improved naming conventions for better discoverability and clarity

Together, these segments give marketers more accuracy to reach high-intent consumers based on real-world behaviors, spending patterns, and financial capacity.

Audience solutions powered by consumer insights

Experian Marketing Data, one of the most comprehensive and accurate consumer databases in the U.S., is the core of our segmentation capabilities. Backed by over 5,000 demographic and behavioral attributes, it helps you understand not just who your customers are but how they live, shop, spend, and engage, too.

Each audience segment is built with privacy and precision in mind, using a blend of demographic data, financial behaviors, lifestyle signals, and media habits. With these consumer insights, we’ll help you uncover meaningful patterns that lead to smarter strategy.

Experian’s pre-built audiences

Our syndicated audiences are pre-built, ready-to-activate segments based on shared characteristics from age and income to purchase behavior and lifestyle indicators. When speed and scale are a priority, these segments offer a fast, effective way to reach your target audience.

Experian’s 2,400+ syndicated audiences are available directly on over 30 leading television, social, and programmatic advertising platforms, as well as within Audigent for activation within private marketplaces (PMPs).

Here’s what’s new from our August 2025 release:

  • CPG shoppers by category (e.g., Frozen Food Shoppers, Multi-Vitamin Shoppers)
  • Luxury EV owners and auto brand shoppers (e.g., Rivian, Polestar, Cadillac)
  • High spenders in specific categories (e.g., men’s grooming and women’s accessories)
  • Ultra high-net-worth households (e.g., Net Worth $50M+) and likely home sellers
  • Young Family Homeowners and Growing Family Apartment Renters

Custom audiences for specialized targeting

Need a custom audience? Reach out to our audience team, and we can help you build and activate an Experian audience on your preferred platform. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation.

Contextually-Indexed Audiences

Experian’s Contextually-Indexed Audiences offer a privacy-safe way to reach relevant consumers in the moments that matter without relying on identity signals or third-party cookies. These segments combine Experian’s consumer insights with page-level content signals, enabling you to align targeting with intent and mindset, even in cookieless or ID-constrained environments.

Want to take your segmentation strategy to the next level? Let’s talk. We’ll help you define your audience in ways that drive real results.

Talk to our team about your segmentation methods today

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Advertising trends with retail media networks in 2023

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It lets brands and advertisers promote their products or services directly within the retail environment where consumers make purchasing decisions. Unlike traditional advertising channels, RMNs use the retailer's first-party data to offer targeted and personalized advertising experiences.  How important is it to advertise with RMNs?  RMNs offer advertisers a unique advantage — a rich set of first-party data on consumers, both on and off the platform. On-platform data includes user engagement insights, demographic information, and behavioral patterns. RMNs offer off-platform first-party data, such as cross-channel integration and CRM data integration. This data is especially important as the industry sees a shift away from the reliance on third-party cookies.  One of the key challenges brands face is the lack of tracking abilities through the customer journey. However, the closed-loop measurement and attribution capabilities within RMNs help advertisers track the entire consumer journey, linking campaign spend directly to final sales and in-store purchases. The precision and accountability offered by RMNs make them a crucial strategy in the ever-evolving world of digital advertising.  Trends with big RMNs  Here is a list of retail media networks and their performance in 2023. The information below offers insights into their reach and effectiveness in driving sales and brand visibility. Amazon  According to Pacvue’s Q4 guide, Amazon Media Network experienced a year-over-year decline in its daily spend. However, a notable quarterly increase of 3.2% suggests a recent expansion in this ad type. The current average CPC for Amazon-sponsored products is $1.21, marking a substantial 7.1% year-over-year increase. Return on ad spend (ROAS) showed a 1.5% year-over-year decrease but increased by 6.1% quarter-over-quarter, potentially caused by more efficient campaigns. The beauty category showed a particularly strong performance with a remarkable 69.4% year-over-year increase.  Walmart Walmart's advertising revenues are surging at a rate twice that of Amazon, according to the Pacvue Q4 report. This quarter, the Walmart Media Network experienced a substantial 40% boost in ROAS, now at $6.93. This advancement can be attributed to strategic adjustments in the algorithm and bid rules and the incorporation of new bid features. Walmart's CPC also witnessed a noteworthy 18.3% year-over-year decrease and a 14.5% year-over-year surge in average ad spend. Walmart's growth trajectory emphasizes the shift in consumer behavior toward product discovery, as many consumers research products on the website before purchasing.  Kroger Kroger developed an advanced retail media network that launched in October 2023. 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Target plans to launch Roundel Media Studio, a self-service buying tool, in early 2024. Marriott In partnership with Yahoo, Marriott has created a travel media network that lets advertisers target consumers based on the hotel chain’s guest data. This collaboration allows ads to be strategically placed on various platforms, including the hotel’s websites. Marriott Media Network’s rollout will start on mobile platforms similar to traditional RMNs. Over time, it will extend to include ad placements on TV screens in guest rooms, Wi-Fi portals, and various digital screens in other areas, like lobbies and bars. This innovative approach in the hotel industry offers marketers diverse opportunities to reach their target audience. Nordstrom Nordstrom Media Network has shown considerable success, generating over $40 million in revenue and collaborating with several brand partners. Introduced in 2019, this network initially experimented with off-site campaigns and later expanded to on-site sponsored ads in 2021. Nordstrom Media Network offers data from 32 million customers and digital properties with nearly two billion annual visits. The network’s focus on personalizing the customer experience helps it stand out in the competitive retail media space and makes it a valuable player in the evolving digital advertising landscape. CVS  With CVS Media Exchange, advertisers have access to a data set of 74+ million customers. This platform creates tailored campaigns for companies, helping their ads reach customers at the most critical points in their shopping journey. With options like display, video, audio, social, and in-store ad options, advertisers are seeing increases in product purchases and brand awareness.  Instacart  Instacart has a retail media network through its own platform and a tool called Carrot Ads, which helps grocery store chains develop RMNs through Instacart. It has a network of over 1,400 retail brands, helping advertisers reach their target audience. Advertisers have access to insights and automation to create relevant ads and track their progress.  Companies like Sprouts are using Carrot Ads to create and grow their own RMNs. Together, Instacart and Sprouts offer brands a unique opportunity by facilitating targeted online campaigns on Sprouts’ website. This collaboration provides access to metrics like sales and ROAS, offering a comprehensive view of campaign performance.  DoorDash DoorDash offers a comprehensive suite of advertising tools for restaurants and brands to expand their reach on the DoorDash marketplace. 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The competitive edge creates an environment where RMNs continually improve and adapt to meet the needs of both advertisers and consumers.  Third-party cookie deprecation  Major web browsers are getting rid of third-party cookies, so advertisers must reevaluate their targeting and tracking strategies. Because of this, the first-party stronghold of RMNs is particularly valuable. Advertisers can rely on their reservoir of first-party data with RMNs to maintain effective audience targeting and measurement capabilities. The emphasis on first-party data aligns with advertisers' needs in the post-cookie era, making RMNs crucial partners in the pursuit of effective and privacy-conscious advertising solutions.  Crafting your RMN ad strategy  Crafting an effective RMN ad strategy is a multifaceted process that involves careful planning. You start with clean, scaled, and scoped data, then everything waterfalls from there. 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This comprehensive solution is designed to help RMNs capture more advertising revenue. Our goal is to ensure you capture the most advertising dollars and make your RMN operate at its peak performance. Learn more here Utilize third-party data  One of the cornerstones of an effective RMN strategy is the integration of third-party data. This is where Experian steps in as a critical ally. Experian's robust third-party data solutions can enhance an RMN’s first-party data to create more scale and scope for RMN audiences. This, in turn, will open up more opportunities for advertiser investment.  Utilize first-party data  The main advantage of RMNs is the access to first-party data. Advertisers can use this data to create personalized and targeted campaigns. By tailoring your messages based on consumer expectations, preferences, behaviors, and purchase history, you create a more engaging and relevant ad experience. 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Here are four audience segments that you can activate to target voters based on their predicted party affiliation: Political Affiliation > Democrat Political Affiliation > Republican Political Affiliation > Independent/Other Political Affiliation > Unregistered Political personas One key target audience could be voters who are likely to be influenced by a political candidate's renewable energy program. Additional target audiences could include those who are likely to be influenced by a candidate's position on the economy or healthcare. Here are 10 audience segments that you can activate to target voters based on their viewpoints on key political issues: Political Personas > Political Unregistered Liberal Leaning Political Personas > Political Unregistered Conservative Leaning Political Personas > Committed Democrats Political Personas > Moderate Democrats Political Personas > Political Leaning Liberals Political Personas > Liberal Leaning Independents Political Personas > Conservative Leaning Independent Political Personas > Political Leaning Conservatives Political Personas > Moderate Republicans Political Personas > Committed Republicans To reach voters who believe the environment is a key political issue, you can layer in our GreenAware audiences with our Political Personas audiences: GreenAware > Behavioral Greens GreenAware > Think Greens GreenAware > Potential Greens GreenAware > True Browns Psychographic/Attitudes > Shopping Behavior > Smart Greens To reach voters based on their regional voting patterns, you can use our new battleground counties and district audiences: Affiliation Switcher Counties   Battleground Counties  House Battleground Districts  Democrat Counties Republican Counties Independent Counties Relevant ballot initiative audiences You can also reach voters based on their attitudes and behaviors related to key ballot measures. 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Finance Income and large financial decisions often trigger changes in perspective and influence voter behaviors. Financial FLA Friendly1 > Income > $1,000-$24,999 Financial FLA Friendly > In Market New Mortgage Financial FLA Friendly > In Market Auto Loan Media consumption and engagement Media consumption and engagement offers great insights into how voter interest, current channel engagement, and engagement in political issues. TrueTouch: Communication Preferences > Engagement Channel Preference > Email Engagement TrueTouch: Communication Preferences > Engagement Channel Preference > Streaming TV Social Media > Snapchat Purchase Transactions > Ad Responders > Digital Television (TV) > Ad Avoiders/Ad Acceptors > Ad Acceptors Mosaic Proprietary persona-based audience solution that combines demographic and behavioral data to create a holistic view of voters and their interests. Mosaic – Personas – Lifestyle and Interests > Group O: Singles and Starters > O55 – Family Troopers Occupation Provides the opportunity to deliver targeted messaging on measures based on a consumer’s occupation. Demographics > Occupation > Management/Business and Financial Operations Demographics > Occupation > Sales Demographics > Occupation > Farming/Fish/Forestry Consumer Behaviors > At-Home: Retired/Empty Nesters Consumer Behaviors > Occupation: Education Personal views Understand consumers personal views around family, their social and work life. Psychographic/Attitudes > Personal Views > Work Centered Psychographic/Attitudes > Personal Views > Family Centered Psychographic/Attitudes > Personal Views > Social Isolation We can help you match your message to your audience With Experian's political audiences, you can confidently execute your political campaign marketing, knowing our audiences are based on voter registration data and advanced predictive technology. 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The retailer uses first-party data and customer insights to create new advertising opportunities and connect with shoppers throughout their buying journey.  In this article, we’ll discuss the significant advances in retail media trends and technology — and their implications for the future of advertising. Benefits of retail media for advertisers Every online impression counts in the digital era, making retail media especially advantageous for advertisers. It yields new opportunities for advertisers to thrive, which we’ll discuss below.  Get access to first-party data First-party data is a valuable asset for advertisers. Retail media networks offer advertisers direct access to customer insights from the retailer's data vault, which helps them create highly personalized ad campaigns and connect with current and potential customers. Custom marketing options for each brand Retail media provides brands with various marketing options, from product listings to onsite display advertising. These options allow advertisers to customize their approach, deliver tailored messages to their target audience, and meet consumers where they are. Reach new customers Retail media networks empower advertisers to connect with new and existing customers using retailers’ extensive digital presence. These networks extend beyond a retailer's own website and allow brands to tap into a broader audience base; major RMNs often have a significant offsite presence and provide advertisers with opportunities to reach consumers across various digital touchpoints and platforms beyond the retailer's controlled environment. This reach enhances brand visibility, engages diverse audiences, and contributes to the growth of customer acquisition.  Closer proximity to purchase decisions Another benefit of retail media is its ability to position brands closer to the point of purchase in the customer journey. Targeted, data-driven advertising strategically placed across various touchpoints enables retailers to influence consumers when they are already lower in the purchase funnel. This proximity increases the likelihood of faster purchase decisions, especially when complemented by strategies such as timely offers and retargeting, expediting the decision-making and conversion processes. Consumers prefer personalized advertising Research has shown that approximately 50% of consumers will spend more money with companies that personalize their e-commerce retail experience. Ads relevant to a consumer’s interests and aligned with their behaviors make shoppers more likely to engage with a brand and find it easier and more convenient. As retailers honor consumer preferences for personalized advertising, they’ll find it easier to align with consumer preferences and provide an improved shopping experience. Retail media network use case: Experian's impactful marketing attribution with a discount store giant Experian’s past collaboration with a discount store giant involved implementing a comprehensive marketing attribution strategy. The primary goal was to effectively demonstrate brand campaign performance and optimize ad spend within the retail media network. We built a full-stack attribution solution that connected their offline and online data, and our approach was as follows: We started by collecting exposure data from all touchpoints, such as the website, app, and offsite display and social, to turn anonymous exposures into identified individuals and households.  Additionally, we gathered debit and credit card transaction data from in-store and online points of sale to better understand purchase behavior. We also unveiled new demographic insights for the retailer.  To streamline the decision-making process, we provided an easy-to-read reporting tool that showcased vital performance metrics.  Takeaways from the collaboration emphasized the importance of: Understanding the audience seeing the ads and those making purchases. Analyzing incremental lift and identifying insights or trends. Sharing these valuable insights across the organization and with advertisers to inform future campaigns and brand positioning. Utilizing recent trends in the retail media landscape This case study serves as a prime example of how recent retail media trends are shaping a data-centric, integrated, and insights-driven future for advertising in retail. Our marketing attribution strategy aligns with the industry's shift toward data-driven decision-making in RMNs.  Today, retailers are adopting full-stack attribution solutions like ours, enabling them to connect offline and online data to understand customer interactions better. This reflects the trend of looking for a holistic view of customer journeys and highlights the importance of integrating diverse data sources to understand consumers comprehensively. Moreover, our strategy to transform anonymous exposures into identified individuals, integrate transaction data, unveil new demographic insights, and provide an easy-to-read reporting tool mirrors the trends of enhanced personalization, merging online and offline data, and simplifying analytics within RMNs.  Using new retail media Our introduction of a user-friendly reporting tool highlights the potential of new retail media to change how advertisers analyze data and gain actionable insights. It emphasizes the value of advanced tools in optimizing ad campaigns, measuring performance metrics, and informing future strategies. New technology will continue to drive effective marketing attribution and shape the future of retail advertising. Kroger Precision Marketing’s newly announced platform Kroger Precision Marketing (KPM) represents another excellent retail media use case. The retail media arm of the popular supermarket chain is looking to the future with the launch of its advertising platform. KPM is committed to innovation, and this move underscores its desire to be at the forefront of the retail media landscape. Let's take a closer look at some of the essential features of this new platform. In-house KPM recently announced the launch of an in-house advertising platform — a significant shift from their previous practices, where they relied on external tools and systems for their retail media services. By bringing the ad technology in-house, KPM has greater control, flexibility, and the ability to align its platform precisely with its retail media goals. This decision enhances Kroger’s self-sufficiency and enables quicker adaptation to evolving market demands.  KPM’s new in-house platform was officially rolled out on October 13, 2023, and is redefining how advertisers interact with Kroger’s expansive base of consumers. Easier for media buyers KPM's in-house platform is also focused on providing better tools for media buyers. The platform is designed to offer advanced automation and optimization capabilities that will make campaigns more efficient and data-driven. By using this platform, media buyers can easily reach the right audience, customize their messages, and fine-tune their campaigns — all in one place. Integrated platform KPM’s new platform will integrate with existing ad campaigns and eventually encompass all their retail media options. This interoperability makes migrating ongoing campaigns easy and minimizes disruptions to advertising efforts. In the long run, the platform will serve as the foundation for all KPM's retail media services. Advertisers will have a one-stop solution for on-site and off-site media channels to ensure consistency and efficiency in retail media strategies. KPM's emerging retail media solutions demonstrate a commitment to advertisers and their changing needs in a shifting digital era. Home Depot retail media  Home Depot, a well-known player in the home improvement retail industry, has made great strides in retail media. With an impressive annual customer transaction count of 1.7 billion and 3.6 billion visits to homedepot.com, their Retail Media+ platform provides advertisers with unparalleled visibility, reaching 198 million individual customers across 2,322 stores, according to their site. The benefits of Retail Media+ also include 24/7 self-service access to advertising portals, real-time reporting for campaign optimization, and dedicated support. What Home Depot’s Retail Media+ does right Home Depot’s Retail Media+ has set itself apart through strategic initiatives that prioritize enhancements to the shopper experience. Here's a closer look at what makes Home Depot's approach to RMN noteworthy: Seamless integration: Retail Media+ seamlessly integrates into the customer's journey without disrupting their experience. The platform allows the delivery of targeted ads across various Home Depot-owned spaces, including the website, app, in-store, email, and offsite channels like social and video. Supplier-centric ad inventory: Home Depot allocates the majority of its RMN ad inventory to suppliers. This ensures the ads presented to customers align closely with the products available at Home Depot for a natural connection between onsite and in-store experiences. Customer-centric approach: Melanie Babcock, Vice President of Retail Media+ and Monetization at The Home Depot, emphasizes maintaining a customer-centric perspective. The goal is not merely to monetize the website but to enhance the customer journey by incorporating suppliers into the process. This approach contributes to a more personalized and relevant shopping experience. Exploration of offsite opportunities: Home Depot is actively exploring opportunities to expand its RM+ platform beyond onsite channels. Initiatives include piloting in-store video screens and venturing into connected TV (CTV). By considering the entire customer journey, Home Depot aims to provide value to suppliers while gaining deeper insights into customer behavior. Strategic use of data science: With the help of data scientists, Home Depot ensures personalized precision in its advertising efforts. This aligns with the shopper's preferences and needs and makes the ads more relevant and engaging. Ongoing adaptation and expansion: Home Depot's proactive stance is evident in its continuous efforts to adapt and expand its RMN initiatives. The exploration of offsite channels, partnerships with platforms like Roku and Disney Advertising, and the piloting of in-store video screens showcase a commitment to staying at the forefront of evolving digital retail trends. Home Depot's success with their RMN stems from its commitment to creating a symbiotic relationship between customers, suppliers, and the retail brand. Home Depot has set a benchmark for RMNs by aligning advertising efforts with the customer's journey and embracing technological advancements. Amazon retail media Amazon Advertising, the retail media division of Amazon, has become another dominant force in the industry. Let’s take a quick look at what they’ve done well and what they could improve. Scale of Amazon’s retail media In 2022, eMarketer estimated that Amazon commanded a 76.9% share of retail digital media spend, blowing its competitors out of the water. Walmart, the second-largest player, trailed far behind with a 6.1% share. This underscores Amazon's unparalleled influence and market presence in the digital advertising landscape and solidifies its position as the go-to platform for advertisers looking to reach a massive audience. What works for Amazon Amazon has an unmatched advantage when it comes to personalizing ads and delivering relevant content to consumers. With over 200 million Prime members in the U.S. alone, Amazon has access to vast amounts of valuable data that spans shopping habits, preferences, and more. This data is invaluable for advertisers looking to target their audiences with precision, and it gives Amazon a significant edge in the market.  What needs to change Although Amazon continues to thrive, there’s always room for improvement. For instance, to attract brand dollars, traditional retailers are starting to concentrate on channels where Amazon has less historical dominance, such as in-store experiences and email marketing. Understanding this potential, Amazon has been experimenting with email tools to enhance merchant-audience connections and widen its reach. As ad sales' profitability becomes more significant, incorporating these offerings into Amazon's retail media strategy could further strengthen its market position. Walmart retail media Walmart has been working hard to become a more dominant retail media force. Walmart Connect, the retailer’s retail media network, has done an excellent job bridging the gap between online and in-store activities. It provides a unique closed-loop system that connects online and in-store activity on an unprecedented scale. This mechanism offers advertisers a comprehensive view of Walmart customers’ behavior, giving them valuable insights and measurable business results. With this closed-loop approach, advertisers can access a holistic view of customer activity and achieve successful marketing campaigns. How Walmart ties together online and in-store activities Walmart’s massive brick-and-mortar presence and its comprehensive online platform provide a complete view of customer behavior and preferences. This synergy between the digital and physical is a compelling selling point for advertisers that gives them a holistic view of consumer interactions. Walmart's connected shopping experience integrates both online and in-store activities, allowing advertisers to engage with customers from the research stage to the online or in-store purchase stage of the buying journey.  New features and technology Walmart’s retail media platform is trying As part of their innovative initiatives, Walmart Connect introduced the "Holiday Hub," recognizing Walmart as America's go-to holiday shopping destination. Advertisers can use this hub to gain key customer insights and implement product best practices to ensure a meaningful omnichannel connection during the holiday season. In terms of new features and technology, Walmart Connect provides various advertising options to help brands stand out from the crowd: The Search feature ensures visibility when customers actively search for products, with ads appearing prominently in search results and on browse pages.  Display ads, strategically placed on Walmart.com, the Walmart app, and across the web, aim to make a premium impression on customers based on their omnichannel Walmart history.  For in-store influence, Walmart Connect offers opportunities to inspire shoppers through digital TV and point-of-purchase screens across 4,700+ Walmart stores.  Walmart's closed-loop measurement uniquely enables advertisers to correlate online ads with purchases, providing unparalleled scale and accuracy in measuring campaign impact. Whether for a small business or a global brand, Walmart Connect offers solutions to help marketers discover new and effective ways to connect with their target audience. The future of RMNs The future of retail media networks (RMNs) is bright and holds exciting possibilities. These five key dynamics will likely drive retail media evolution: Smaller retailers getting into the RMN game With each passing day, more small brands are becoming active with RMNs. This trend is highly beneficial, bringing diversity, competition, expanded reach, and collaborative potential to the landscape. The future of RMNs is expected to be shaped by a mix of established and emerging brands. This will create an inclusive environment for advertisers and consumers alike. Potential for cross-platform campaigns Cross-platform campaigns in RMNs allow advertisers to create a cohesive, impactful, and data-driven advertising approach across different retail media networks. This shift in campaign strategy aligns with the dynamic nature of consumer interactions in the digital landscape, as it provides a comprehensive solution for brands that seek to enhance their presence and influence across diverse channels. Targeted vs. personalized ads Personalized ads are becoming a notable trend in RMNs and replacing targeted ads. This means RMNs now provide consumers with more relevant and tailored content based on their interests and preferences. The shift is driven by the increasing demand for personalization and the need to improve the consumer shopping experience. RMN advertisers must take advantage of these personalized ad opportunities to create stronger brand awareness. Conversions vs. brand awareness Advertisers often struggle when deciding whether to focus more on conversions or brand awareness. For a well-rounded strategy, RMN advertisers should craft campaigns that balance these two goals. Using the data and insights from RMNs, advertisers can personalize their messaging to drive sales and build and reinforce brand recognition. This approach can help RMN advertisers make brand awareness a central component of their advertising efforts. Third-party data integration to enhance data and audiences As RMNs evolve, data expansion is essential for targeted, personalized, and contextually relevant advertising experiences and will help drive the future success of retail media. Advertisers using third-party data, in particular, can unlock new dimensions in audience targeting to create more tailored and impactful campaigns. Third-party data allows for a broader understanding of customer behaviors and preferences and facilitates relevant content delivery.  Data insights for more connected, tailored advertising Moving forward, it will also be important for advertisers to achieve a consistent view across online, app, and in-store activities. They need to understand where customers prefer to be reached and where they are most likely to engage so they can ensure a strategic alignment of messaging and optimize the effectiveness of their retail media strategies. The future of RMNs lies in using comprehensive data insights for more connected and personalized advertising.  What about AI? Where is it useful? In the retail media context, AI (Artificial Intelligence) enhances advertisers’ capabilities by providing valuable insights and automation to drive more effective and personalized ad campaigns. AI helps analyze vast amounts of data, predict consumer behavior, and empower advertisers with the tools to optimize their strategies. Ultimately, it helps them deliver more tailored, relevant content to consumers that best aligns with their interests and preferences.  Humans still needed to drive change While AI is a critical technology in retail media, it doesn’t replace the need for human expertise. People are still essential for driving change, making strategic decisions, and ensuring AI-driven solutions align with business objectives. Moving forward, advertisers will need to utilize both AI-driven capabilities and human expertise to see the greatest success. A connected customer identity is the key to success  The future of advertising lies in the seamless integration of customer identity across various touchpoints. Experian's cutting-edge solutions are leading the way in this transformation. We can help businesses navigate this dynamic environment with helpful tools that unlock a comprehensive view of audiences and facilitate effective campaigns across multiple channels.  Partner with Experian to achieve retail media success Experian’s comprehensive data and identity solutions can help RMNs maximize their opportunity, with our new solution tailored to enhance RMNs’ strength in first-party shopper data. Experian’s solution helps RMNs unlock expanded customer insights, enriched audiences for activation, identity resolution for cross-channel audience targeting, and real-time measurement and attribution. This comprehensive solution is designed to help RMNs capture more advertising revenue. Our goal is to ensure you capture the most advertising dollars and make your RMN operate at its peak performance. Read more here Our Consumer Sync solutions can connect customers across multiple touchpoints and channels, specifically bridging the gap between online and in-store to ensure a holistic view and strategy for audiences, campaigns, and performance. With access to over 2,500 frequently updated data points, we have the depth and breadth of data needed to supplement your audience strategy. We’ll help you unlock a broad view of your audiences to see well-rounded profiles, gain the reach required to access your audience across multiple channels, and turn opportunities into revenue. Additionally, our Consumer View solutions can help deepen your understanding of your customers, their behaviors, and campaign success.  Connect with a member of our team today to get started. Latest posts

Jan 23,2024 by Experian Marketing Services

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At Experian Marketing Services, we use data and insights to help brands have more meaningful interactions with people. As leaders in the evolution of the advertising landscape, Experian Marketing Services can help you identify your customers and the right potential customers, uncover the most appropriate communication channels, develop messages that resonate, and measure the effectiveness of marketing activities and campaigns.

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