Advertiser expectations still fall short
The most insightful customer data sits at the heart of commerce media — but that doesn’t mean advertisers always get the insights they’re looking for. And even though agency holding companies have moved to bolster their positions in the retail arena, analysts agree the space is very much still in its infancy when it comes to the sophistication of data insights available.
“It is early innings for what brands are actually getting versus expectations in retail media,” said Jon Flugstad, associate partner at McKinsey & Co., who last year coauthored a comprehensive study on the topic.
Generally, brands would like more than the KPIs they currently get from commerce media, according to the analyst. For example, advertisers would eventually like the ability to meet commerce media operators in a clean room with their audiences to ensure they’re not duplicating audience or duplicating reach across multiple media networks.
“There’s what [advertisers] are asking for and then what they hold us accountable for, so it’s kind of an interesting intersection,” said Elizabeth Marsten, who, as group director of marketplace strategic services at the performance marketing firm Tinuiti, collaborates with retailers like Amazon, Walmart and Kroger on areas like service expansion, sales and marketing, and product development.
The two areas marketers are most focused on now are incrementality for new brands and whether those brands can dedupe across retailers, said Marsten — who was quick to add, “No one is there yet.”
