Change is the only thing you can count on when it comes to digital marketing. Banner ads and social media campaigns + changing consumer behavior and privacy regulations = something new. Retail Media Networks (NMR) are a big part of that something.
NMRs allow brands to reach consumers with laser-like precision when they are ready to buy. HAS The MarTech conferenceTed Svikas, CTO of Amplitude, used the story of Ben & Jerry’s partnership with Asian food delivery giant Foodpanda to demonstrate how NMRs can revolutionize advertising as we know it.
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“When you’re Unilever and you’re selling products in the heat of the moment, in real time, when someone is ready to buy, it’s not the right decision to put something on Facebook, Snapchat or in a Google search result,” he says.
The zero consumer: a new breed requires a new approach
Today’s consumers, especially younger generations, are challenging conventional marketing ideas. They constitute what McKinsey aptly calls “the zero consumer,” exhibiting distinct characteristics that challenge traditional advertising strategies:
Zero border: They expect seamless brand experiences across online and offline channels, demanding consistency and personalization, no matter how they engage. “There are no borders,” Svikas said. They expect to be treated the same.
Zero in the middle: Their spending habits tend toward the extremes, either indulging in high-end products or meticulously researching budget-conscious alternatives. This “splurging or being extremely…cost-conscious” behavior requires nuanced targeting approaches.
Zero loyalty: They will switch brands after even one negative experience. “[J]Just one bad experience” can shatter brand loyalty, highlighting the importance of consistently exceeding expectations.
Net zero as a purchasing factor: They increasingly consider a brand’s commitment to sustainability and social responsibility in their purchasing decisions, demonstrating increased awareness of a company’s ethical stance.
So, traditional marketing, which relies on broad targeting and impersonal messages, will not work.
A case study in real-time personalization
Unilever saw “The Zeros” as an important target audience for Ben & Jerry’s new ice cream flavors. In partnership with Foodpanda, they leveraged the platform’s vast first-party data to “zero in” on consumers seeking food delivery at the critical point of the purchasing decision.
Unilever used The Trade Desk to strategically place ads for new dessert flavors in the Foodpanda app. This ensured that users already showing an interest in food, especially desserts, would see them precisely when their purchase intent was highest.
The results were remarkable:
A return on advertising investment of 1.5x, exceeding initial forecasts and highlighting the effectiveness of the targeted approach. A return 26 times higher than Foodpanda’s typical audience ROAS. A 94% lower cost per acquisition than traditional methods, confirming that Ben & Jerry’s has reached its desired audience of Generation Z and Millennials, known for their willingness to explore new flavors.
This case study highlights the potential of RMNs to reach the right consumers at the right time with personalized messages that drive conversions, far exceeding the reach and impact of traditional advertising methods.
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“They actually met people at the time when they were craving this new dessert ice cream,” Svikas said. “Their low cost per acquisition indicates they found the right audience.”
Main success factors of NMR campaigns
Adopt proprietary data strategies: Prioritize first-party data over diminishing third-party cookies. “[D] We do not rely on third-party cookies,” he said. “The scope of this approach may seem tempting, but the transparency will never be as granular as that of a retail media network.” NMRs offer greater transparency and measurement capabilities than walled gardens.
Prioritize measurement and continuous optimization: Track campaign performance, analyze results, and adapt strategies based on real-time insights to maximize effectiveness and ROI. Continuous measurement is vital because “only one retail media network can work for you today.” This won’t work for you tomorrow.
Operate in real time: Emphasize agile campaign management, real-time data analysis, and rapid adjustments to capitalize on changes in consumer behavior. Remember that today’s consumer “has no boundaries, no patience and no loyalty.” Quick action is essential to capture their attention and drive conversions.
Getting the most out of NMR means using real-time, data-driven, privacy-conscious personalized advertising strategies. This will also put you in a good position for the next change.
