Retail media, a market of the future for mass distribution

Retail media, a market of the future for mass distribution

Is the world of retail media in turmoil? The Carrefour and Fnac-Darty banners have launched their own retail media platform in recent months, Carrefour in June 2021 through “Carrefour Links”, and Fnac-Darty last month, with its new “MyRetailink” offer. For brands and agencies, this is the promise of more granular measurement of conversion data. Retailers, for their part, see it as a business opportunity and a way to capitalize on their first-party data.

Criteo, technological partner of Carrefour and Fnac-Darty, has made retail media one of its growth pillars. Criteo has in its portfolio more than 120 of the largest international retailers, tells ZDNet Geoffroy Martin, General Manager and EVP Growth Portfolio at Criteo. If this segment of digital advertising is gaining popularity, “there is still an effort to educate the market,” said the latter. To put it simply: “the predigital form of retail media is the advertising at the head of the gondola that we see in supermarkets,” adds the manager.

Amazon has been using this method of targeted advertising for about ten years. The American e-commerce giant noticed in the 2010s that more than 50% of internet searches for the purpose of purchase began on its marketplace, reports Geoffroy Martin. To monetize all this traffic, Amazon was therefore inspired by what Google was doing with sponsored links. Since then, the biggest retailers have taken on the bandwagon. According to figures from McKinsey, the retail media market reaches $ 17 billion in 2021 (excluding Amazon and China), and is expected to grow globally by around 20% each year, reaching $ 32 billion in 2024 .

“The new frontier of Ad Tech”

Criteo set up its retail media division in 2019, following the acquisitions of the start-up HookLogic in 2016, then of the French Storetail in 2018. “Initially, our business model was to manufacture a techno and install it on e-merchant websites. Then, we are going to canvass the brands by selling the placements on e-merchant sites ”, explains Geoffroy Martin. Criteo then turned to display formats with CPM. The company is now working on these two fronts, and offers self-service to advertisers. “With an agnostic platform, we provide technology to merchants, brands and agencies,” comments the General Manager.

While retail media is on the way to establishing itself as “the new frontier of Ad Tech”, according to Geoffroy Martin, Criteo expects annual growth of at least 55% in its retail media division.

The health context is certainly there for something. “With the Covid, we had a quantum leap of about three or four years of e-commerce penetration,” notes Geoffroy Martin. The health crisis and its episodes of confinement have boosted online commerce among all categories of the population, even among older consumers, and allowed hybrid models such as the drive for food to take off.

The prospect of stopping third-party cookies has also put the spotlight on the advantages of retail media and the use of proprietary data from merchant sites. Geoffroy Martin maintains that Criteo is working on the notion of “privacy by design”, and guarantees a “very high level of compliance” with the rules on data protection. Online advertising should therefore in the future take more account of “audiences, context and cohorts, than individuals”, summarizes Geoffroy Martin.

Is the world of retail media in turmoil? The Carrefour and Fnac-Darty banners have launched their own retail media platform in recent months, Carrefour in June 2021 through “Carrefour Links”, and Fnac-Darty last month, with its new “MyRetailink” offer. For brands and agencies, this is the promise of more granular measurement of conversion data. Retailers,…

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