Written By: Sudeshna Ghosh
Table of Contents
Key Takeaways
- A leading US-based Retail client experienced a remarkable 5% Increase in revenue, 15% improvement in Cost savings and an improved media strategy with Quantzig’s advanced Retail Media Analytics Solutions.
- The client’s primary challenges included stagnant market share growth amidst regional competition, a lack of visibility into campaign effectiveness, and the absence of a structured framework for ROI measurement.
- Quantzig provided a solution involving a framework to distinguish between natural revenue and marketing-influenced revenue, implemented a Multi-Touch Attribution solution to assess the role and ROI of each marketing channel, and constructed models for quantifying campaign features and conducting What-If analyses to optimize future investment planning.
- Through our Marketing Decision Management (MDM) framework, we assist clients in effectively utilizing marketplace media to enhance brand activations, expand brand awareness, and reach target audiences, offering expertise in selecting the right platforms, allocating budgets, and analyzing campaign performance to optimize strategies.
Introduction
Retail marketplace media encompasses digital advertising across retail sites, marketplaces, and applications, harnessing a wide range of first-party data possessed by retailers about their customers. Leading retailers have rapidly expanded their retail media networks (RMNs), providing brands with a platform to target high-intent shoppers. The proliferation of these networks stems from advertisers seeking robust measurement capabilities amidst reducing digital media expenditures and evolving data regulations.
Marketplace sellers are adopting this trend as retail media presents a significant opportunity to engage and influence customers. By embracing it proactively and implementing advanced analytics practices, retail marketplace sellers can unlock substantial business growth potential. This case study underlines how Quantzig’s Retail Media Analytics Solution helped a leading US-based client to achieve 5% Increase in revenue, 15% improvement in Cost savings and an improved media strategy.
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Quantzig Success Story
| Client Details | A leading US-based client with a presence across more than 25 states |
| Challenges Faced by the Client | The client’s primary challenges included stagnant market share growth amidst regional competition, a lack of visibility into campaign effectiveness, and the absence of a structured framework for ROI measurement. |
| Solutions Offered by Quantzig | Quantzig developed a framework to distinguish between natural revenue and marketing-influenced revenue, implemented a Multi-Touch Attribution (MTA) solution to assess the role and ROI of each marketing channel, and constructed models for quantifying campaign features and conducting What-If analyses to optimize future investment planning. |
| Impact Delivered | 5% Increase in revenue, 15% improvement in Cost savings and enabled an improved media strategy. |
Client Overview
In a fiercely competitive landscape, a leading US-based client with a presence across more than 25 states faced formidable challenges in augmenting its market share. Hindered by stiff competition from regional players, the client grappled with ineffective marketing strategies and lacked a robust framework for measuring campaign impact and identifying optimal channels. To overcome these hurdles and drive sustainable growth, the client turned to Quantzig, a renowned analytics and advisory firm, for innovative solutions.
Challenges Faced by the Client
The client’s primary challenges included stagnant market share growth amidst regional competition and a lack of visibility into campaign effectiveness. Moreover, the absence of a structured framework for ROI measurement hindered strategic decision-making regarding future campaigns. The client sought a solution to identify the most lucrative investment opportunities, conduct comprehensive what-if analyses, and quantify the ROI of various marketing channels.
Solutions Offered by Quantzig
Quantzig embarked on a multifaceted approach to address the client’s challenges comprehensively. Initially, a sophisticated framework was developed to segregate revenue into natural revenue and marketing-influenced revenue streams, providing invaluable insights into campaign effectiveness. Subsequently, an advanced Multi-Touch Attribution (MTA) solution was implemented to discern the role and ROI of each marketing channel accurately. Additionally, Quantzig devised a framework to evaluate campaign features and determine their potential impact, facilitating the identification of optimal budget allocation. Moreover, cutting-edge models were deployed to conduct what-if analyses, enabling proactive investment planning for future campaigns.
Quantzig’s Retail Marketplace Analytics-Driven Approach: Impact Delivered
The implementation of Quantzig’s tailored solutions yielded remarkable results for the client. Notably, the client experienced a notable 5% increase in revenue, indicating the efficacy of the optimized marketing strategies. Furthermore, a significant 15% improvement in cost savings underscored the efficiency gains achieved through streamlined campaign management. Importantly, the client benefited from an enhanced media strategy, enabling more targeted and impactful marketing initiatives.
Through collaboration with Quantzig, the client successfully navigated through competitive challenges and achieved tangible business outcomes. By leveraging sophisticated analytics frameworks and cutting-edge models, the client gained unprecedented visibility into campaign performance and optimized resource allocation for maximum ROI. Moving forward, the client is poised for sustained growth and market leadership by harnessing data-driven insights to drive strategic marketing decisions.
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Request a Free PilotBenefits from Quantzig’s Retail Media Analytics
Within our comprehensive marketing decision management (MDM) framework, we offer tailored solutions to guide our clients in strategically investing in retail marketplace media, a pivotal digital channel for brand activations within platforms, while concurrently bolstering overall brand awareness and reach. Our expertise spans three critical areas:
1. Platform Selection:
Navigating the diverse landscape of retail marketplaces demands a nuanced understanding of the available advertising options and features. We collaborate with clients to identify platforms that resonate with their target audience and align seamlessly with their advertising objectives. By selecting the most suitable platforms, clients can optimize their brand visibility and engagement within the digital marketplace ecosystem.
2. Budget Allocation:
Determining the appropriate allocation of resources to advertising necessitates meticulous analysis and foresight. We provide invaluable insights to help clients strike a balance between their investment in advertising and their budgetary constraints. By evaluating potential returns on investment alongside budget considerations, clients can make informed decisions that maximize the efficacy of their advertising endeavors.
3. Campaign Performance Analysis:
Monitoring and dissecting the outcomes of marketing campaigns are paramount to refining strategies and achieving sustained success. Our robust analytics capabilities enable clients to meticulously track campaign performance, discerning which tactics yield the most favorable results. Armed with this actionable data, clients can iterate and optimize their advertising strategies to capitalize on emerging opportunities and mitigate inefficiencies.
Through our MDM framework, we empower clients to navigate the complexities of marketplace media advertising with confidence and precision, fostering meaningful brand interactions and driving tangible business outcomes in the dynamic digital retail marketplace landscape.
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Start your Free Trial TodayChallenges in Implementing Retail Marketplace Media Analytics
With the incorporation of new age techs, it also comes with a few challenges. Some of them for the retail media analytics are as mentioned below:
- Rising Competition and Financial Strain: With a surge in advertisers vying for coveted ad placements, the expense of advertising on marketplace platforms can soar. This heightened competition often triggers bidding wars for premium positions, resulting in inflated advertising expenditures and diminished returns on investment (ROI).
- Constraint on Data Accessibility and Management: Marketplace platforms exercise authority over access to invaluable customer data, constraining advertisers’ capacity to conduct thorough tracking and analysis of campaign effectiveness. This limited access may impede advertisers’ ability to discern crucial metrics including conversion rates, customer demographics, and lifetime value, thereby hindering informed decision-making processes.
However, the challenges are just the means to find solutions, exactly what Quantzig does for you.
Read more: Building an Effective e-Commerce Business Strategy with the Help of Web Mining and Text Analytics
Importance in Embracing Retail Marketplace Media
In retail marketplace, leveraging retail media platforms empowers sellers to strategically position targeted advertisements for their products alongside comparable offerings or search results within the marketplace ecosystem. This strategic placement significantly enhances the visibility of sellers’ products, ensuring they are prominently showcased to potential customers who have already demonstrated an interest in the relevant category.
By harnessing the capabilities of retail media, sellers can effectively tailor their advertising campaigns to reach high-intent shoppers, thereby maximizing the impact of their advertising expenditure. This approach not only increases the likelihood of attracting qualified leads but also optimizes the conversion potential by engaging with audiences actively seeking products within the specified category. Ultimately, the utilization of retail media platforms represents a sophisticated and cost-effective means for sellers to augment their brand visibility and drive sales within the competitive landscape of online marketplaces.
Why Should Marketplace Sellers Embrace Retail Media Analytics?
This tool refers to digital advertising initiatives strategically deployed across various marketplaces, applications, and retail platforms, effectively harnessing the extensive first-party data accessible to retailers regarding their potential customer base. Many Retail companies such as Amazon, Walmart, and Carrefour have rapidly expanded their Retail Media Networks (RMNs), offering a platform for brands to target high-intent shoppers with their advertising campaigns. It is imperative for sellers operating within marketplaces to prioritize their focus on retail media analytics, as it presents numerous opportunities to engage and attract potential customers.
Here are some key rationales prompting marketplace sellers to actively explore and invest in retail media:
1. Reach high-intent shoppers
One significant advantage of retail media lies in its ability to target customers at the pivotal moment when they are poised to make a purchasing decision. Whether they are actively searching for a product on Amazon or perusing categories on a retailer’s website, these actions signify a potent intent to buy. This presents an optimal opportunity to position your products directly in front of these highly motivated shoppers precisely when they are prepared to make a purchase. Through this tool, your brand and products are strategically placed along the path of customers who have clearly signaled their purchase intent.
2. Compete for brand dominance
Engaging in retail media enables you to proactively promote your products and enhance their visibility within the marketplace. This strategic approach can significantly impact your positioning in both paid and organic search results. Securing prime sponsored product placements and deploying compelling display advertisements can effectively elevate your products above competitors vying for prominent digital shelf space. This avenue provides an opportunity to establish connections with shoppers at an earlier stage and potentially secure placement within the coveted buy box.
3. Leverage lot of retailer shopper data
Many retailers and marketplaces possess invaluable insights into customer behavior and preferences, leveraging their platforms to enable targeted advertising based on this data. Through these channels, advertisers can pinpoint and engage with specific segments such as past category purchasers, loyal customers, high-value shoppers, and others. Retail Media Networks (RMNs) offer comprehensive reporting capabilities, furnishing detailed insights into the audiences reached. Leveraging this wealth of data on retailer shoppers proves immensely insightful for both targeting and optimizing advertising expenditures.
4. Benefit from retailers and marketplace investments
As retailers and marketplaces increasingly emphasize retail advertising, sellers are afforded access to enhanced advertising products, formats, and capabilities. The evolution includes the introduction of self-service platforms, automated campaign management systems, and innovative ad placements, among other advantages, as retailers and marketplaces allocate resources to this domain. By capitalizing on these advancements, sellers can circumvent significant development expenses while acquiring state-of-the-art functionality.
Embracing this Analytics tool is imperative for marketplace sellers seeking to navigate the complexities of digital media costs, data restrictions, and retailer shopper data effectively. By leveraging insights from business growth trends and purchase decisions, sellers can optimize retailer and marketplace investments and capitalize on the potential of the Retail Media Network (RMN). Understanding the dynamics of the digital advertising channel and the impact of offline retail media marketing practices is crucial for targeting high-value shoppers and maximizing ROI. With a strategic approach to analyzing ad products and harnessing advanced analytics, marketplace sellers can gain a competitive edge in vertical marketplaces and drive sustainable growth.
Read more: Retail Marketing Analytics Helps Retail Client Witness 10% Rise in Sales Margin
Retail Media vs. Marketplaces
Retail media and online marketplaces are frequently conflated terms, though they represent distinct concepts within the digital commerce landscape. While online marketplaces serve as platforms hosting a diverse array of products or services from multiple third-party vendors, retail media constitutes a specific marketing strategy employed within these third-party retail ecosystems, involving the placement of paid media. Notably, the purposes of these concepts diverge; online marketplaces primarily facilitate transactions, whereas the objective of retail media centers on driving consumer conversions at the point of purchase. It’s worth noting that neither term fully encapsulates the nature of platforms such as Amazon Ads.
When discussing platforms like Amazon, the term “retail media” commonly refers to what is known as a retail media network (RMN). RMNs serve as the nexus between the marketing strategy of consumer conversion at the point of purchase and the facilitation of transactions within a marketplace. These networks constitute comprehensive e-commerce ecosystems that engage with the audience through targeted advertising seamlessly integrated alongside third-party offerings. This positioning enables their advertisements to reach consumers in close proximity to the purchase decision, distinguishing RMNs from other digital advertising channels. Moreover, RMNs are distinguished by their extensive repository of rich first-party data, meticulously gathered through their advertising infrastructure. This data underpins the digital channels provided by RMNs, which brands utilize for targeted advertising campaigns.
Implementing a robust strategy for Performance Monitoring is essential for marketplace sellers to gain insights into their Competitive Intelligence and refine their Merchandising Strategy. By leveraging data-driven insights, businesses can secure a sustainable Competitive Advantage in both Retail Environments and online marketplaces. Understanding the nuances of the Retailer’s Customer Base and Consumer Shopping Habits enables targeted advertising campaigns that resonate with the audience. With careful consideration of Retail Media versus traditional Marketplaces, sellers can optimize their advertising business and capitalize on emerging opportunities, ensuring long-term success in an ever-evolving retail landscape.
Retail Media with Strong Analytics
While running sponsored products campaigns can yield some incremental benefits, fully harnessing the potential of retail media necessitates integrating it with comprehensive analytics solutions like Mimbi. Adopting an analytics-first approach is imperative, coupled with stringent performance monitoring practices. Here are some recommended best practices:
1. Gain Insight into Retail Media Performance:
It’s essential to track key advertising metrics such as impressions, clicks, and click-through rates across all networks. However, the primary focus should be on monitoring direct sales and orders attributed to investments. Evaluate overall revenue generated and return on ad spend (ROAS). Are you experiencing a positive return? What proportion of incremental revenue can be directly attributed to retail media efforts? Identifying top-performing campaigns is vital. Maintaining a keen awareness of the bottom-line sales impact is paramount.
2. Delve into Campaign Insights:
Conduct a thorough analysis of campaign performance, dissecting specific variables such as product, campaign type, creative elements, landing pages, audience segmentation, ad placements, and temporal factors like time of day and day of the week. Identify successful strategies and areas for improvement. Optimize by deactivating underperforming elements while expanding upon successful ones. Leveraging direct sales data afforded by retail media enables aggressive optimization strategies, maximizing campaign efficacy.
3. Benchmark Against Overall Business Performance:
Contextualize retail media sales within the broader framework of overall marketplace and cross-channel sales. Determine the proportion of revenue attributed to retail media initiatives and ascertain whether they contribute to incremental growth or merely redistribute market share. Assess the distinguishing characteristics of shoppers compared to other customer segments. Ensure that expenditures genuinely drive incremental revenue and do not cannibalize existing sales channels.
4. Enhance Analysis with Competitive Insights:
Augment your analysis with competitive intelligence factors such as competitor pricing strategies, inventory levels, and customer review ratings. Identify competitive gaps where opportunities for market penetration exist. Monitor competitors’ advertising efforts to understand their share of voice and potential impact on market share. Make informed decisions by considering the broader competitive landscape, not solely reliant on internal performance metrics.
5. Center on Product Portfolio:
Integrate analytics seamlessly with your overarching product catalog and merchandising strategy. Uncover insights into the performance of individual products, distinguishing between top-selling items and those encountering challenges in gaining traction. Align your catalog assortment and product launch initiatives based on these findings. Ensure precision in advertising by targeting the most relevant products to the appropriate audiences.
Conclusion
In summary, retail media networks emerge as a significant opportunity for marketplace sellers to engage and influence high-intent shoppers. With substantial investments from retailers and marketplaces in enhancing advertising platforms, sellers must adopt retail media to sustain competitiveness across on-site and off-site channels. However, the cornerstone of enduring success lies in amalgamating retail media with comprehensive analytics spanning media performance, sales metrics, and broader business context. By adhering to advanced analytics protocols, sellers can refine advertising campaigns to optimize sales outcomes and return on investment (ROI). For retail marketplace sellers adept at leveraging retail media networks and mastering analytics, the potential business impacts are profound.
