As brands realize that ad spend across traditional digital media channels isn't growing as fast as it once did, e-commerce sellers are seizing the opportunity to tap into new revenue streams by launching retail media networks.
Take Wolt, a multinational on-demand distribution aggregator based in Helsinki, owned by DoorDash, and operating in 27 countries. In an interview with PYMNTS following the launch of the company's advertising services for both merchants and brands, Catalina Salazar, global head of Wolt Ads, discussed how the e-commerce media landscape is evolving. talked about.
“Any company that has the opportunity to connect partners and consumers will undoubtedly be considering developing retail media solutions, and retail media is becoming increasingly important in budget investment decisions. We're also hearing from our partners,” Salazar said.
She says that while “big media companies like Google and Meta” used to account for 70% to 80% of brands' ad budgets, these companies are now reallocating that money to retail media. he added. In fact, brands continue to observe that it is increasingly difficult to achieve the success they once had with their advertising dollars.
“[One] What's really impressive is the speed with which our partner brands have adapted to retail media,” said Salazar.
For on-demand distribution companies, these networks have a key benefit: they can increase revenue from high-cost business models. This is currently the biggest concern for players in this space. In fact, these delivery services are doing everything from launching white-label products to expanding into new retail categories to better monetize their driver networks and open up new revenue streams.
Additionally, e-commerce players of all kinds, from retailers to third-party marketplaces and even banks (as of earlier this month), are moving into the retail media space, monetizing consumer data to supplement existing revenue streams. I am.
Consumers are open to the targeted messaging enabled by these ventures, according to the PYMNTS Intelligence and AWS report, “Personalized Offers are Powerful, but Too Often Missing the Point.” . The survey, which collected responses from more than 2,500 U.S. consumers, found that 71% of shoppers receive and are interested in personalized offers, and an additional 12% do not receive personalized offers but are interested in them. , turned out to be interested. Furthermore, 41% of Millennials report that they are more likely to switch to a merchant that provides personalized offers, as are his 34% of Gen Z consumers.
But these companies' databases can offer more than just numerically derived types of personalization. Salazar warned of the dangers of focusing solely on performance metrics at the expense of branding. She emphasized the importance of striking a delicate balance between driving immediate conversions and creating lasting brand affinity.
“For many brands I've worked with, we've been so focused on performance media and measuring results that we forget to build the brand,” Salazar said.
Salazar believes that by integrating data-driven targeting and compelling brand stories, brands can build deep emotional connections with consumers while simultaneously driving measurable business results and long-term loyalty. I was imagining the future.
Looking ahead, Salazar spoke about the transformative potential of data collaboration in reshaping the retail media landscape. She combines the information brands have about their customers with the retail media network's database to derive synergistic insights to create more personalized and impactful marketing strategies, drive deeper engagement, and deliver long-term We envision a future that fosters unique customer loyalty.
“I think data collaboration is very exciting,” she said. She is “very excited about the opportunity to explore further.” [of this]Brands can also tap into our power to understand consumers by leveraging what we know about them, and work together to create smarter, better strategies. ”
