Change is the only thing you can rely on in digital marketing. Banner ads and social media campaigns + shifting consumer behavior and privacy regulations = something new. Retail media networks (RMNs) are a big part of that something.
RMNs let brands reach consumers with laser-like precision when they are ready to buy. At The MarTech Conference, Ted Svikas, Amplitude’s field CTO, used the story of Ben & Jerry’s partnership with the Asian food delivery giant Foodpanda to demonstrate how RMNs 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 somebody is ready to buy, it’s not the right move to put something on Facebook or Snapchat or in a Google search result,” he said.
The zero consumer: A new breed needs a new approach
Today’s consumers, particularly the younger generations, defy conventional marketing wisdom. They are what McKinsey aptly terms “The Zero Consumer,” exhibiting distinct characteristics that challenge traditional advertising strategies:
- Zero boundaries: They expect seamless brand experiences across online and offline channels, demanding consistency and personalization regardless of how they engage. “There are no boundaries,” said Svikas. They’re expecting to be treated the same.”
- Zero in the middle: Their spending habits tend toward extremes, either indulging in premium products or meticulously hunting for budget-conscious alternatives. This “splurging or being extremely…mindful of their cost dollars” behavior necessitates nuanced targeting approaches.
- Zero loyalty: They will switch brands after even a single negative experience. “[J]ust one single poor experience” can shatter brand loyalty, underscoring the importance of consistently exceeding expectations.
- Net zero as a buying factor: They increasingly factor a brand’s commitment to sustainability and social responsibility into their purchase decisions, demonstrating a heightened awareness of a company’s ethical stance.
So, traditional marketing, relying on broad targeting and impersonal messaging, won’t work.
A case study in real-time personalization
Unilever saw “The Zeros” as a strong target audience for Ben & Jerry’s new ice cream flavors. Partnering with Foodpanda, they leveraged the platform’s vast first-party data to “zero in” on consumers browsing for food delivery at the critical moment of purchase decision.
Unilever used The Trade Desk to place ads strategically for the new dessert flavors in the Foodpanda app. This ensured users already demonstrating an interest in food, particularly desserts, would see them precisely when their purchase intent was highest.
The results were remarkable:
- 1.5x return on ad spend, surpassing initial projections and highlighting the efficiency of the targeted approach.
- 26x greater return than Foodpanda’s typical audience ROAS.
- 94% lower cost per acquisition than traditional methods, confirming that Ben & Jerry’s reached its desired audience of Gen Z and millennials, who are known for their willingness to explore new flavors.
This case study underscores the potential of RMNs to reach the right consumers at the right time with personalized messaging that drives conversions, far surpassing the reach and impact of traditional advertising methods.
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“They actually met the people at the moment in time they were craving this new dessert ice cream,” Svikas said. “Their low cost per acquisition indicates that they found the right audience.”
Key success drivers for RMN campaigns
- Embrace first-party data strategies: Prioritize first-party data over diminishing third-party cookies. “[D] on’t rely on third-party cookies,” he said. “The reach on that may seem tempting, but the transparency will never be as accurate as a retail media network would.” RMNs provide superior transparency and measurement capabilities compared to 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 “one retail media network may work for you today. It won’t work for you tomorrow.”
- Operate in real time: Emphasize agile campaign management, real-time data analysis and quick adjustments to capitalize on consumer behavior shifts. Remember, today’s consumer “has zero boundaries, zero patience and zero loyalty.” Swift action is critical to capture their attention and drive conversions.
Getting the most from RMNs means using data-driven, privacy-conscious, real-time personalized advertising strategies. It will also put you in a good position when the next change comes along.
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