Pioneering retail media – Key learnings
At the OMR Festival 2023 in Hamburg, we presented our approach to channel management and retail media as a part of our masterclass with BSH & Medela and gave the audience insights into our secrets of success.
The growing importance of retail media for brands is undeniable. The numbers speak for themselves: retail media expects a $61 billion business next year, doubling from 2021. Compared to traditional media channels like Facebook and Google, marketplaces and retail media providers like Amazon are growing at a much faster rate. In order to continue to reach customers and optimize advertising strategies, retail media should definitely be included in the marketing mix. It not only creates visibility for your brand, but also generates valuable data, that, when gathered and utilized in the right way, is an advantage that shouldn’t be underestimated, especially in the cookie-less reality.
Here is a summary of the most important takeaways from our Masterclass:
1. To establish successful multichannel marketing, internal silos in the form of digital marketing, marketplaces and retail partners must be interlinked in a target-oriented approach.
Medela’s marketing and sales channels:
Digital marketing directly addresses consumers via display, (Google) search and social media, with the aim of generating awareness and directing users to the point of sale
Marketplaces such as Amazon and Local Heroes drive sales to moms (consumers) who are in the market and actively looking for a solution or Medela product
Sales and promotions with retail partners
2. If you work with many channels, you can’t avoid smart, global dashboards. The goal is to monitor all your campaigns, measure the data, combine it and get a complete overview. While the online/offline hybrid offers a challenge, a solid data basis will help you derive efficient advertising strategies and make sound budget decisions.
Medela pursues a unique growth strategy thanks to DEPT®, through a mix of consulting analytics, advertising campaign management, retail management and content optimization. These efforts are then fully monitored through the implemented dashboard and QBRs. In addition, DEPT® tracks and reports Medela’s performance on a daily basis, leveraging their key drivers in specific markets. Combined with the development of the internal team, this allowed for the right focus.
3. A successful growth strategy is composed of several elements:
4. A crucial ingredient of a successful advertising strategy is offering customers exactly the right product or the right message at exactly the right time. The combination of retail media and programmatic advertising enables advertisers to target very precisely. In collaboration with DEPT® , Medela can, for example, define the stage (i.e. pregnancy or breastfeeding) of a consumer based on their buying and search behavior. The product assortment is mapped to the signals accordingly and displayed to the consumer in the form of ads, excluding those that are irrelevant for that specific stage. This approach has reduced ad costs by 28%.
Want to learn more about taking your retail media and marketplace strategy to the next level? How to set up the necessary dashboards and structures in your organization? We’d love to talk with you.
Re-watch the full recording of our Masterclass: