Kunal Parekh’s Post

🚀 Costco’s Big Move into Retail Media: What It Means for Advertisers and Its Future 🚀 Read the end to see our take! Costco is stepping into the retail media arena with a new ad network, leveraging its vast membership data. This move signals a significant shift for the retail giant and offers exciting opportunities for advertisers. Here’s why Costco’s new initiative could reshape the industry: 🔍 Key Insights: Harnessing Membership Data: Costco’s ad network taps into insights from 74.5 million household members, targeting customers based on shopping habits and past purchases. This precision allows advertisers to connect with the right audience at the right time, both online and in-store. Strategic Late Entry: Though late to the retail media party, Costco is making a calculated move. By capitalizing on its loyal customer base and rich data, Costco can offer a powerful advertising platform that enhances targeting and engagement, potentially setting a new standard for personalized marketing. Unique Value Proposition: Unlike competitors, Costco links individual purchases to household memberships, providing unparalleled insights into consumer behavior. This capability allows for highly personalized advertising, directly influencing purchase decisions. Reinvesting Ad Profits: Costco plans to reinvest profits from its ad business to keep prices low for customers, maintaining its competitive edge and customer loyalty. This reinvestment could also fuel further innovation in their advertising strategies. Growth Potential: As demand from brands and agencies grows, Costco’s retail media network could unlock substantial new revenue streams. This initiative not only boosts advertising opportunities but also strengthens Costco’s overall value proposition for both customers and advertisers. 🔮 What’s Next for Costco? Enhanced Customer Insights: Expect Costco to dive deeper into customer analytics, refining ad targeting to be even more precise. Expansion of Ad Offerings: Look for new advertising formats and channels, integrating more seamlessly with Costco’s online and offline experiences. Potential Market Leadership: With a successful rollout, Costco could become a leading player in the retail media space, influencing industry practices and standards. 💡 Takeaway: Costco’s entry into retail media is set to revolutionize targeted advertising, leveraging its rich membership data to create impactful ad campaigns and offering a fresh approach in a competitive landscape. Keep an eye on Costco—they’re poised to become a major player in retail media! #RetailMedia #Advertising #DigitalMarketing #CustomerEngagement #DataDriven #Innovation #Costco #Marketing #FutureTrends Credit & Source: https://lnkd.in/eK_muh-m by Ryan Barwick

Today’s #retailmedianetwork landscape could be compared to the California gold rush of the 1800s. Google’s third-party cookie is finally crumbling, making gold out of the alternative first-party data as #retailers chase audience insights. The promise of wealth, or in this case, ad dollars, has the marketplace heating up with scads of #retailers, from first-movers like Amazon to newcomers like Wawa convenience store — even to the unsuspected like Cars.com automotive company. By the end of this year, #retailmedia ad spend is expected to make up one-fifth of worldwide digital ad spend, scooping up $140 billion, which is up from the forecasted $115 billion in 2023, according to EMARKETER. Retail media is a growing space, no doubt. Especially as #advertisers are eager to plug the holes #Google's third-party cookie deprecation is leaving behind. But that growth has led to fragmentation as agencies grapple with where to spend client ad dollars that’ll give the most bang for their buck. “From where we sit as an agency, it’s certainly making our lives and our day-to-day work more exciting, more challenging,” said Ethan Goodman, evp of digital commerce at The Mars Agency. In regards to the biggest players in the space, like Amazon Ads, Roundel (Target’s retail media business), Walmart Connect and Albertsons Media Collective, he said, “They have significantly improved and scaled their capabilities — their audience and targeting capabilities, their measurement capabilities. Really practically, they’ve improved their channel offering and the breadth of their channel capabilities.” Digiday caught up with Goodman and other agency executives to talk about how the retail media competition is looking — and the players most on their radar. Story by Kimeko McCoy

Add another retail media network to the mix—Costco has entered the game! As the article headline quote says, "Advertisers could soon be targeting hot-dog-combo enthusiasts who buy toilet paper by the truckload." The retail giant is leveraging its 74.5 million household membership data to roll out targeted advertising both on and off its website. Think that Costco, the third-largest retailer in the U.S., may soon be a major competitor in the highly competitive retail media market? This market is projected to grow to $166 billion by 2025 and account for 20% of all digital media spending this year, as reported by eMarketer. #retailmedia #rmn #retailadvertising

According to Digiday, 85% of marketers (outside of Amazon) invested in Walmart's retail media platform in the beginning quarter of the year. Only half a year before these numbers, the statistic was only 54%. This shows the growth and potential in Walmart's media platform -- given how rapidly opinions and investments have changed. Retail media is very hot right now, and at the IAB Connected Commerce Summit happening in the fall, we'll be exploring the rise of retail media networks and marketplaces. As the number of stores that sell on social media grow and influencers continue to play a massive role in commerce, we're likely to see more and more brands hop on the retail media bandwagon. If you care to join us, early bird tickets are still available for about 2 more weeks. https://lnkd.in/e5Gn_NqD #RetailMedia #Walmart #CreatorEconomy #Amazon

Unlocking the Power of Retail Media Networks Retail media networks have become increasingly effective in recent years due to several key factors. Retailers have access to a wealth of customer data, including purchase history, browsing behavior, and demographic information. This data allows them to create highly targeted advertising campaigns that reach the right audience with the right message at the right time. In addition, shoppers on retail websites are often in a high-intent state, actively looking for products to purchase. This makes them more receptive to relevant ads and more likely to convert, compared to audiences on other platforms. Finally, customers often have a level of trust and familiarity with retail brands, making them more receptive to advertising from these sources. This trust can result in higher click-through rates and conversion rates. READ ARTICLE: https://conta.cc/40gdYS0 #MARKETING #RetailMedia #CustomerData #DigitalMarketing

DID YOU KNOW: The retail media market will grow by 25% per year to $100 billion over the next five years ⚡ Read the article "Why we care about retail media networks" here: https://lnkd.in/eph3eQmG Key takeaways include: 📊 Insights from a 2023 IAB study of 200 advertisers and agencies who spend $5 million or more annually in RMNs 📈 The retail media market will account for over a quarter of total digital media spending by 2026 📱 55% of advertisers state the top reason for investing in RMN is its ability to reach new/incremental audiences, followed by its ability to leverage retailers' first-party data Kickstart your retail media advertising journey with panda ads today 🛒 https://lnkd.in/g_Cu2Ni5 #RetailMedia #DigitalAdvertising #pandaads

Unlocking the Power of Retail Media Networks Retail media networks have become increasingly effective in recent years due to several key factors. Retailers have access to a wealth of customer data, including purchase history, browsing behavior, and demographic information. This data allows them to create highly targeted advertising campaigns that reach the right audience with the right message at the right time. In addition, shoppers on retail websites are often in a high-intent state, actively looking for products to purchase. This makes them more receptive to relevant ads and more likely to convert, compared to audiences on other platforms. Finally, customers often have a level of trust and familiarity with retail brands, making them more receptive to advertising from these sources. This trust can result in higher click-through rates and conversion rates. READ ARTICLE: https://conta.cc/40gdYS0 #MARKETING #RetailMedia #CustomerData #DigitalMarketing

In 2022, the expenditure on digital retail media advertising in the United States was estimated to be $41 billion. Projections indicate that by 2026, this figure is likely to double.   The term 'digital retail media' encompasses the advertising space on retail-oriented websites, apps, or online marketplaces. This form of advertising has become increasingly vital for brands in the e-commerce sector.   In a recent campaign focusing on digital media, we achieved a significant Return on Ad Spend (ROAS), successfully selling 166.9 thousand units. More crucially, our analysis delved into the impact on Target.com and our client.   A key insight from this campaign was that 78% of the consumers engaged were new to the relevant Target product categories, having previously purchased outside of these categories at Target. The success of the Acosta Team's campaign on Target's Retail Media Platform can't be fully encapsulated by ROAS alone. While it's possible to achieve high ROAS by targeting a small audience, this doesn't necessarily translate to overall brand or retail sales growth. In our approach, the Acosta Team, focusing on Target and Target.com, employed a comprehensive strategy. We didn't just look at immediate returns but instead considered a wide range of relevant data points. This allowed them to adopt a test-and-learn methodology, crucial in measuring not just direct returns but also incremental lift as we monitored the growth in this holistic approach for not just our client, however, Target as well.  #roundel #target #criteo #acosta #retailmedia #retailmedianetworks

Retail media networks have become one of the fastest growing ad supported media channels. eMarketer estimates global ad spending for RMN’s in 2024 will reach $140 billion, a year-over-year increase of 21.8%. In 2025, RMN global ad spending is forecast to reach nearly $166 billion. This year, RMN will account for about one-fifth of all digital ad spending, third behind search and social.

In the vast digital marketplace, where millions explore their favourite websites, retailers are evolving into advertising giants! 🚀💼 With retail media sales predicted to exceed £22bn by 2026, the game is changing. Brands collaborate with retailers to showcase products strategically, influencing millions of potential customers. Retail media allows precise targeting and also offers brands the opportunity to collect first-party data, ensuring reliable insights into shopper behaviour. Find out more: https://bit.ly/41uqo9P #RetailMedia #DigitalMarketing #ConsumerEngagement #Advertising