Retail Media Upfronts 2024: Data, creativity & lasting customer relationships

“This genuinely could be the area of the industry that has the biggest potential”, announced James Chandler, IAB UK’s CMO. “All the products, the newness, the relationship with consumers on a near-daily basis - the work of trying to get people to trust us already exists.” James went on to share a first look at new data from the IAB projecting advertising spend on retail media will exceed £1bn next year, and over the course of the afternoon, we heard why data points, brand collaborations and customer understanding are the keys to unlocking success in the space. Here are our top six takeouts… 

Introduce digital into traditionally analogue spaces 

“The unsung hero of retail media is in-store", declared SMG’s COO Emma Dean, which she admitted was anunusual message to hear at IAB Digital Upfronts, but – in a session with Bianca Hall, Senior Insight Director - she went on to present 10 actionable lessons for marketers to optimise campaign performance (and don’t worry, digital was high on the agenda!) 

The insights included the importance of consistently measuring performance and identifying top channels for ROI, such as digital till screens and in-store radio. Seasonal campaigns were noted to generate 79.4% greater uplift compared to non-seasonal efforts, while Dean encouraged marketers not to shy away from using competitive pricing in their campaigns, as combining messaging can enhance effectiveness. Hall reinforced the value of the extensive data collected from in-store evaluations, emphasising the need for consistent measurement standards across retailers. The session underscored the necessity of adapting to shopper missions and leveraging dynamic digital channels, which significantly outperform traditional methods in driving sales. 

Make data the ‘why’ to your ‘what’ 

Amir Rasekh, Managing Director at Nectar360, emphasised a customer-centric approach to retail media, reflecting on feedback from 23 million active Nectar customers. Playing real audio from Nectar360 customers, the audience heard that bad retail media felt intrusive and irrelevant, often leading to annoyance. What people want to see is creative, relatable and memorable advertising that resonates emotionally with them, prioritises personalisation and utilises seasonal insights. 

In a discussion with Kenvue’s Sarah Millbanks and Biotiful Gut Health’s Natasha Bowes, the importance of consumer data was highlighted. Millbanks shared how insights from social listening and demographic data shape Kenvue’s market strategies, while Bowes brought in the SME perspective and described how data helped reposition Biotiful's kefir campaign, resulting in an impressive 30% increase in consumers. “It’s absolutely necessary to balance science and magic in anything you do”, explained Bowes. “Being fully grounded in consumer data and insight allows us to use the ingredients we need to create our campaigns - data is the ‘why’ to the ‘what’ of what we do.” 

Meet customers in contextually relevant environments 

Knowing your customer is a key principle of advertising and Uber Ads’ Head of International, Paul Wright, made a strong case for how it does this so brilliantly. Despite rapid growth, Uber has stuck to the principles of putting the customer first, getting people to places quickly and getting things to people quickly. It’s extended these principles to its ad business, which explains the 49% YoY growth in grocery and retail delivery in EMEA. 

“We have an unusual approach to retail media as we capture people ‘in moment’”, reported Wright. 60% of consumers go on to the Uber Eats app without knowing what they’ll order – so that requires an expert understanding of the user and a wealth of data points to guide the customer to decide. Looking ahead to the next year, Wright announced that Uber would be moving into AR ads on the Uber Eats platform, first impression ads, a spotlight menu and pre-checkout encouragement, as well as potentially looking at destination branding and off-platform exploration. 

Strive for longevity rather than short-term love  

“I’ve got one question for you: Are you ready, are you ready for love?”, Tesco Media Insight Platform's Head of Agency, Steve Edwards, challenged the audience. Joining Edwards on stage to share insights around fostering longer lasting customer relationships (rather than ‘situationships’) was Tesco Media & Insight’s Georgia Goodall (Media Insights Manager) and Jamie Howett (Strategy Manager). Goodall explained that Tesco’s platform can identify compatible customers for specific brands, allowing targeted outreach to both existing and potential buyers, while Jamie highlighted the challenge of customer retention, noting that over 50% of new customers do not repurchase: “Over 50% of the time, brands aren’t getting a second date with their customers.”   

The importance of being consistently present during key moments to foster familiarity and loyalty was illustrated in a successful Walkers campaign for which Tesco’s ability to pinpoint ideal customer segments led to increased retention and sales – a true love story if ever we saw one! 

Embrace creativity over conformity 

“I like to think when brands partner with us, they’re not losing their brand identity, they’re just gaining a new perspective and a new audience”, said ASOS Media Group’s Imogen Cork, as she explained why heritage brands come to ASOS to attract new audiences. 

The team, including Director Elton Ollerhead and Fashion Lead Olivia Stoddart, underscored the significance of social media in shaping customer interactions with retailers, highlighting increasingly demanding customer experiences while announcing the imminent launch of its third brand campaign in the last 12 months. Lauren Briley, Social Content Lead, added that a successful social strategy hinges on cultural relevance and engagement to keep ASOS in the conversation. Stoddart summed up the approach: “We make sure all content aligns with our latest campaigns and the big trends – it's not complicated, boring, safe or conformist.” 

Customise your client environments 

Rounding off the second day at The Steel Yard, Ocado Ads showcased its innovative approach to retail media through insights from Ben O’Mahoney, Zachary Willis and Alex Knapman. “We’re the world’s largest online-only supermarket... delivering double-digit growth,” declared Willis, who is Retail Media Product & Proposition Lead. He emphasised the brand’s technological capabilities, which allows for reliable and fast product delivery, enhancing customer loyalty. 

Knapman, who lead media sales, introduced ‘The Brand Toolkit’, designed for customer-first growth. “We want to make it as easy as possible to activate using our toolkit.” This resource spans multiple platforms and allows for precise audience targeting and tracking. “We’re championing customisation,” O’Mahoney said, as lead of ad tech and data partnerships. He elaborated on customised client environments that combine customer transaction data with audience profiles. Ocado Ads aims to provide robust insights and measurement tools, while continually evolving to meet advertiser needs and adhere to IAB standards. We like the sound of that. 

Digital Upfronts is running 2-24 October 2024. Find out about all the events that are running here.