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1、Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright
2、 ExchangeWire L|Mat Broughton Senior Editor,ExchangeWireIn association withThe Evolution of Commerce Media in Europe2/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,inc
3、luding photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|ContentsExecutive summary 2Key definitions 3Key findings 4Methodology 5Commerce media revenue 6Change in commerce media revenue in next 12 month
4、s 9Drivers and barriers to commerce media investment 11 Drivers for commerce media investment 12 Barriers against commerce media investment 15 Concerns with granting advertisers access to customers 18Retailer attitudes to third-party commerce media technologyproviders 20 Openness to partnering with
5、third-party technology providers for commerce media efforts 21 Factors for third-party selection 23 Looking to the future 24Acknowledgements 27About PubMatic 27About ExchangeWire 27Executive summaryCommerce media has undoubtedly been one of the most eagerly-discussed emerging sectors in the advertis
6、ing industry over the course of last year.Global and local brands are keenly exploring how to advertise through the channel,given that it offers marketers a method of meaningfully demonstrating return on investment(ROI),thus fulfilling the“closing of the loop”between media spend and actual sales dat
7、a,which has become particularly prevalent against the backdrop of identifier deprecation across display and mobile environments.While much has been made of these opportunities for marketers in commerce media,there have been fewer investigations examining attitudes to commerce media from the perspect
8、ive of retailers and commerce media platforms,and how their investment in the sector is set to evolve accordingly.To that end,ExchangeWire has produced this Insights&Attitudes report,in association with PubMatic,to ascertain how sellers of goods and services within Europe are interacting with commer
9、ce media,the core drivers and barriers to increasing commerce media investment,and how retailers are working with technology partners to capitalise on opportunities within the sector.As detailed within this study,commerce media in Europe is thriving.Almost all(99%)retailers are either increasing or
10、maintaining their commerce media investment in 2023,as they are embracing the channel as a method for expanding their owned media properties.The majority are also open to working with third-party technology providers to help them to fulfil these ambitions,with cost savings and enhancements in data a
11、ctivation cited as the key factors behind partner selection.“In Europe,we know that domestic retailers are often growing faster than Amazon.Were going to see category leaders emerge,were going to see national champions emerge.The diversity of the commerce media landscape in Europe means a lot of com
12、panies can win in this space.”Babs Kehinde,Senior Director,Commerce Media at PubMatic.Overall,these findings are highly bullish for the commerce media industry within Europe.The theoretical advantages that the medium offers are being actively explored by retailers across multiple verticals and withi
13、n all surveyed markets as they seek to bolster profitability in uncertain economic conditions.This in turn will open up further opportunities across the buy side of the advertising supply chain,promoting the overall health of the digital advertising industry.Going forward,it is critical for marketer
14、s and retailers to work together,in collaboration with their technology partners,to ensure these opportunities are realised.3/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechan
15、ical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Key definitionsCommerce media:Commerce media is defined as advertising sold within digital properties in which products or services are
16、also sold.This typically comprises retailer websites and apps,or online marketplaces,though it can also include on-site digital displays such as store entrance screens and in-store signage.Commerce media also comprises off-site campaigns run by retailers using their shopper data on behalf of third-p
17、arty brands that have their products listed on the retailers page or app.Commerce media company:A commerce media company is any company that sells goods or services to customers,that has a view on the transaction data,and that makes those users available for targeting by advertisers onsite and/or of
18、fsite.Retailer:An individual or company that sells goods and/or services to the public in physical stores(physical retailer),via the internet(e-commerce retailer),or both in-store and via the internet(hybrid retailer).For brevity,the term retailer is used interchangeably in this report with commerce
19、 media company(see above)for a full breakdown of surveyed retailer verticals,please see“Methodology”below.99%of retailers generating revenue from digital advertising are in-part doing so via commerce media4/27In association with:Published January 2023.All rights reserved.No part of this publication
20、may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Key findingsThe overwhelming majority(99%)of European r
21、etailers that currently generate revenue from digital advertising are in-part gathering this via commerce media activity.Most retailers in Europe are either increasing their commerce media investments(67%)or maintaining current levels(24%)over the coming year.Direct media selling is set to be used b
22、y all surveyed European retailers for their commerce media efforts,while programmatic is also being embraced by retailers across the region on both programmatic direct and real-time bidding(RTB)bases.Retailers are seeing commerce media as a way of enhancing their own media properties,with the expans
23、ion of owned advertising channels,provision of better targeting and personalisation of ads,and bolstering brand safety in commerce media channels,the joint-most cited drivers by European retailers.Unsurprisingly in the current economic climate,concerns over the cost of the technology needed to be im
24、plemented and hiring people with the correct skill set were identified as the main barriers to commerce media investment across Europe.Concerns around user data are the primary cause of worry for commerce media companies when granting advertisers access to their customers,with over half of all surve
25、yed firms indicating that they were concerned with issues surrounding their customers data.The overwhelming majority(80%)of European retailers are open to working with third-party providers for their commerce media efforts,with 20%of those surveyed stating that they are already working with partners
26、.With cost cited by European retailers as a predominant barrier for commerce media investment as a whole,it was perhaps unsurprising that the cost of partnering with third-party technology providers was cited as a key influencing factor behind partner selection.This was closely followed by data acti
27、vation,indicating that retailers are looking to maximise the value of their first-party data assets.80%of European retailers are open to working with third-party providers for their commerce media efforts67%of retailers in Europe are increasing their commerce media investments5/27In association with
28、:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyrigh
29、t ExchangeWire L|MethodologyThe original quantitative findings in this Insights&Attitudes report were derived from a survey of 112 commerce media company professionals in Europe.The surveyed markets were France(FR);Germany(DE);Spain(ES);and the United Kingdom(UK).Commerce media company type:Commerce
30、 media company verticalCompany revenue:32%E-COMMERCE31%SMALL(REVENUE 50M)5%UNDISCLOSED31%ADVERTISING/SALES DIRECTOR 13%HEAD OF TECHNOLOGYRespondent seniority:112 Commerce media company professionals in Europe surveyed7%AUTOMOTIVE 4%CPG 15%ELECTRONICS 4%FASHION,APPAREL,AND JEWELLERY 3%FURNITURE AND H
31、OMEWARE 35%RETAIL 5%SPORTS GOODS 10%GROCERY 3%HARDWARE 11%SERVICES 4%PHARMACEUTICAL 6/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or an
32、y information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Percentage of advertising revenue attributable to commerce mediaCommerce media revenueThe overwhelming majority(99%)of European retailers that currently generate revenue from d
33、igital advertising are gathering this in part through commerce media activity,with approximately 16%of those surveyed generating more than 60%of their advertising revenue via commerce media.Moreover,where retailers are not currently running digital advertising on their properties,over two-thirds(69%
34、)are planning on leveraging commerce media for monetisation in the future.Percentage of respondentsFigure 1:Percentage of advertising revenue attributable to commerce media0%1%20%21%40%41%60%61%80%81%0%10%20%30%6%10%30%30%23%1%7/27Published January 2023.All rights reserved.No part of this publicatio
35、n may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|In association with:Figure 2:Percentage of advertisin
36、g revenue attributable to commerce media by country100%75%50%25%0%4%25%22%13%43%29%30%42%14%29%30%33%29%7%13%8%14%7%4%4%FranceGermanySpainUKBy market,retailers in the UK are generally more active in commerce media,with 87%of those surveyed generating at least 20%of their digital advertising revenue
37、through the channel.This contrasts with Spain,where only 57%of retailers are generating at least 20%of their digital advertising revenue through commerce media.Percentage of respondents81%OF ADVERTISING REVENUE6180%OF ADVERTISING REVENUE4160%OF ADVERTISING REVENUE2140%OF ADVERTISING REVENUE120%OF AD
38、VERTISING REVENUE0%OF ADVERTISING REVENUE8/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,
39、without prior permission in writing from the publishers.Copyright ExchangeWire L|Figure 3:Percentage of planned commerce media revenue per buy type0%1%20%21%40%41%60%61%80%81%0%10%20%30%40%DIRECTPROGRAMMATIC DIRECTPROGRAMMATIC RTBProportion of respondentsPercentage of planned commerce media revenue
40、per buy type0%3%10%32%25%27%34%37%33%23%19%9%11%0%2%7%0%28%While direct media selling is set to be used by all surveyed European retailers for their commerce media efforts,programmatic is also being embraced by retailers across the region on both programmatic direct and real-time bidding(RTB)bases.W
41、hile a minority(10%)are eschewing selling inventory via RTB,a larger proportion(11%)aim to generate 61%-80%of their commerce media revenue on the RTB marketplace.11%of European retailers are generating 61%81%of their commerce media revenue via RTB10%of European retailers are avoiding selling invento
42、ry via RTB9/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in wri
43、ting from the publishers.Copyright ExchangeWire L|Change in commerce media revenue in next 12 monthsThe majority of retailers within Europe are either increasing their commerce media investments(67%)or maintaining current levels(24%)over the coming year.Only 9%of those surveyed suggested they were l
44、ooking to decrease commerce media investment over the course of 2023.This trend of the majority of retailers increasing their investments in commerce media was observed in all surveyed markets,with Germany commanding the largest proportion of commerce media companies aiming to increase their spend t
45、hrough 2023,at 76%of surveyed respondents.While 15%of retailers within France are aiming to reduce their commerce media investment in the next 12 months,the market was also the most aggressive in terms of increasing commerce media investment:18%of respondents stated that they aimed to increase their
46、 commerce media investment by at least 50%.Likewise,the majority of retailers are looking to increase commerce media investment through 2023,irrespective of company size.While large retailers(revenue greater than 50m)are most likely to increase commerce media investment in the next year(76%),medium-
47、sized businesses(revenue between 5m and 50m)are most aggressive in their commerce media investment increase,with 50%of these retailers increasing their commerce media investment by 30%or more.76%of large retailers(revenue greater than 50m)are likely to increase commerce media investment in the next
48、year10/27Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.
49、Copyright ExchangeWire L|In association with:Figure 4:Change in commerce media investment in next 12 months0%5%10%15%20%25%No changeIncreasing by 50%Decreasing by 50%24%25%11%2%2%4%1%13%18%Change in commerce media investmentPercentage of respondents11/27In association with:Published January 2023.All
50、 rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Drivers an
51、d barriers to commerce media investment12/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,w
52、ithout prior permission in writing from the publishers.Copyright ExchangeWire L|Drivers for commerce media investmentA wide variety of factors were cited by retailers as being key drivers towards increasing their commerce media investment,indicating that the channel is not simply being viewed as an
53、alternative to channels facing stricter privacy controls.Most prevalently,retailers are seeing commerce media as a way of enhancing their own media properties,with expanding owned advertising channels,providing better targeting and personalisation of ads,and the minimal concerns around brand safety
54、in commerce media channels the joint-most cited drivers(32%)by European retailers.32%of European retailers highlighted expanding owned advertising channels,better targeting and personalisation of ads,or minimal concerns around brand safety in commerce media channels as key drivers for commerce media
55、 investment13/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in w
56、riting from the publishers.Copyright ExchangeWire L|0%10%20%30%40%Creating high-valueincrementalrevenue channelsBecome moreattractive to brandpartnersExpand ownedadvertisingchannelsBetter targeting and personalisation of adsAccess toadvertiserfirst-party dataClosed-loopattributionUpselling productsa
57、t point ofpurchaseAccess tobrand-retailermarketingpartnerships(e.g.co-branded loyalty cards)Capturing data in emerging channels(CTV,Audio,DOOH)Brand safetyOfferingprivacy-compliantadvertisingFigure 5:Drivers for commerce media investment25%32%23%14%22%25%22%32%23%27%32%Percentage of respondents14/27
58、Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright
59、 ExchangeWire L|In association with:There were again dramatic differences in key drivers for increased commerce media investment across the surveyed European markets.While expansion of owned operating channels was cited as a key driver across Europe in general,most heavily in Spain(48%of respondents
60、),this was not as important a factor for respondents in the UK,with only 14%of respondents citing it.Similarly,though offering privacy compliant advertising was the equal-most important driver for commerce media investment in France(36%),this was a minor factor for UK respondents,with just 3%of resp
61、ondents identifying this as a key motive.This can also be observed with attractiveness to brand partners,something which was identified as a key driver by 36%of respondents in France,but only by 16%of respondents in Germany.Finally,capturing data from emerging channels was significantly more importa
62、nt to respondents in France(33%)and Germany(32%)than their counterparts within Spain(8%)and the UK(10%).There were also marked differences in motivations for increased commerce media investment according to company size.For small retailers(revenue 50m),expansion of owned advertising channels was cit
63、ed as the predominant factor driving commerce media investment(32%).Meanwhile,for medium-sized retailers falling between these revenue ranges,access to brand-retailer marketing partnerships was the leading driver(43%),closely followed by opportunities to create high-value incremental revenue channel
64、s(40%).Driverb Franceb Germanyb Spainb UKCreating high-value incremental revenue channels30%24%24%21%Become more attractive to brand partners36%16%24%28%Expand owned advertising channels30%40%48%14%Better targeting and personalisation of ads24%36%28%38%Access to advertiser first-party data33%28%20%1
65、0%Closed-loop attribution12%20%12%14%Upselling products at point of purchase27%16%24%17%Access to brand-retailer marketing partnerships(eg co-branded loyalty cards)30%24%20%24%Capturing data in emerging channels(CTV,Audio,DOOH)33%32%8%10%Brand safety36%24%32%34%Offering privacy-compliant advertising
66、36%20%32%3%Figure 6:European retailer drivers towards increasing commerce media investment by market48%of respondents in Spain cited expansion of owned channels as a key driver for increased commerce media investment14%of UK respondents pointed to expansion of owned channels as a key factor for incr
67、easing commerce media investment15/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without
68、prior permission in writing from the publishers.Copyright ExchangeWire L|Barriers against commerce media investmentSimilarly to drivers for increasing commerce media investment,a wide variety of barriers to expanding commerce media budgets were also identified by European retailers.Unsurprisingly in
69、 the current economic climate,concerns over the cost of the technology needed to be implemented and hiring people with the correct skill set were identified as the main barriers across Europe in general,at 32%and 30%of respondents respectively.Given the prevalent level of concern around granting adv
70、ertisers access to user data(see“Concerns with granting advertisers access to customers”),protecting customer data privacy was also unsurprisingly cited as a key barrier(29%)to commerce media investment.29%of surveyed retailers cited protecting customer data privacy as a key barrier to commerce medi
71、a investment16/27Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the pub
72、lishers.Copyright ExchangeWire L|In association with:0%10%20%30%40%Hiring people with theright skill setCost of technologyInternal pushback against commerce media within organisationConcerns overadvertising fraudProviding brands with measurement and reporting capabilitiesProtecting customer data pri
73、vacyRisk of damagingrelationship withsuppliersFulfilling advertiserexpectationsFigure 7:Retailer barriers to commerce media investment30%24%21%29%26%24%32%24%Percentage of respondentsBarrier17/27Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted i
74、n any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|In association with:While there were substantial differences in drivers for commerce medi
75、a investment according to company size,there was remarkable consistency in barriers to commerce media investment by revenue.Cost of technology and protecting customer data privacy were cited as the most important barriers to commerce media investment for each revenue grouping.Barrierb Franceb German
76、yb Spainb UKHiring people with the right skill set39%40%16%21%Cost of technology24%40%44%24%Internal pushback against commerce media within organisation24%28%24%21%Concerns over advertising fraud36%28%20%10%Providing brands with measurement and reporting capabilities21%32%16%14%Protecting customer d
77、ata privacy36%24%28%24%Risk of damaging relationship with suppliers27%40%16%21%Fulfilling advertiser expectations21%16%20%38%Figure 8:European retailer drivers towards increasing commerce media investment by market18/27In association with:Published January 2023.All rights reserved.No part of this pu
78、blication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Concerns with granting advertisers access to
79、customersConcerns around user data are the primary cause of worry for commerce media companies when granting advertisers access to their customers,with over half of all surveyed respondents indicating that they were concerned with issues surrounding their customers data.However,many also express con
80、cerns regarding on-site user experience(45%)and risks of diluting core audience(34%),indicating that the advertising industry needs to adopt a multifaceted approach to encourage retailers to invest in commerce media.Figure 9:Concerns with granting advertisers access to users EuropeNo concernsOn-site
81、 user experienceRisk of diluting core audienceUser data concerns0%20%40%60%Percentage of respondents8%45%34%55%Concern19/27Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,
82、recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|In association with:Figure 10:Concerns with granting advertisers access to users by countryNo concernsOn-site user experienceRisk of diluting core audienceUser d
83、ata concerns0%20%40%60%80%FRANCEGERMANYSPAINUKPercentage of respondents6%4%16%7%45%72%24%38%36%40%36%24%42%52%52%76%76%of UK retailers expressed concerns over user data72%of surveyed retailers in Germany were significantly more concerned with on-site user experience20/27Published January 2023.All ri
84、ghts reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|In associatio
85、n with:Retailer attitudes to third-party commerce media technology providers21/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any infor
86、mation storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Openness to partnering with third-party technology providers for commerce media effortsThe overwhelming majority(80%)of European retailers are open to working with third-party technol
87、ogy providers for their commerce media efforts,with 20%of those surveyed stating that they are already working with such partners.This interest in partnering with third parties on commerce media was consistently held across markets.Respondents in France were more confident to work with third parties
88、,with 27%compared to their counterparts 16%(DE and ES)and 17%(UK).France also saw the lowest proportion of surveyed retailers already working with third-party providers for commerce media efforts(9%),contrasting with the United Kingdom,where 31%of retailers stated that they are already partnered wit
89、h third-party providers for their commerce media initiatives.Figure 11:Retailer openness to working with third-party technology providers for commerce media efforts by company sizeAlready working with third-party provider 20%Very open to working withthird-party provider 33%Somewhat open to working w
90、ith third-party provider 28%Hesitant to work with third-party provider 16%Would never work with third-party provider 4%22/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical
91、,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Figure 12:Retailer openness to working with third-party technology providers for commerce media efforts by retailer typeE-commerce onlyPhysi
92、cal onlyHybrid0%25%50%100%75%Percentage of respondents75%25%69%31%93%7%NOT OPEN TO WORKING WITH THIRD-PARTY TECHNOLOGY PROVIDEROPEN TO WORKING WITH THIRD-PARTY TECHNOLOGY PROVIDER23/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or tran
93、smitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Factors for third-party selectionWith cost cited by European retailers as a pred
94、ominant barrier to commerce media investment as a whole,it was perhaps unsurprising that the cost of partnering with third-party technology providers was cited as a key influencing factor behind partner selection,with an average score of 3.82 out of a maximum of 6.This was closely followed by data a
95、ctivation(3.72),indicating that retailers are looking to maximise the value of their first-party data assets.Refining this further via the Net Promoter Score(NPS)metric,the only factors recorded as being actively promoted by European retailers as key factors for partner selection were cost and data
96、activation.However,other factors were also deemed important depending upon individual market and retailer size.Performance KPIs were deemed important among respondents in France and Germany,while access to demand partners(specifically agencies and brand advertisers)was deemed more critical in Spain
97、and the United Kingdom.Cost was significantly more important(NPS:23)for small retailers with less than 5m in yearly revenue,compared to large retailers with revenues totalling more than 50m(NPS:3).For medium-sized retailers within this range,meanwhile,cost was the sole important factor for selecting
98、 third-party technology providers,with a NPS of 39.Data activation and access to demand partners were both deemed important factors by large and small retailers,while small retailers also valued performance KPIs.24/27In association with:Published January 2023.All rights reserved.No part of this publ
99、ication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|Looking to the futureThis study has found that
100、there is much to be positive about in the European commerce media sector.Across the markets studied here,momentum has picked up significantly in recent years,and these results highlight that this growth is set to continue,and perhaps even increase,through 2023.Commerce media has evolved from an abst
101、ract medium to one that is being actively developed by both the buy and sell sides.However,even with this strong growth,the pace of market development currently lags behind the opportunity.In making these recommendations,we recognise that many businesses are getting key aspects right.However,partici
102、pants conceded that commerce media within Europe is not yet perfect,and the recommendations below are informed by the findings of this study.1.Clarify definitionsDefinitions need to be simplified for buyers and sellers.Even within markets,theres no common language when it comes to commerce media adv
103、ertising and confusion abounds some people call it retail media and some commerce media.2.Meet demands for the next generation of advertisersAdapting to the requirements of the next generation of media buyers will be key to future success.Much like retailers,agencies themselves have been undergoing
104、digital transformation for many years now and were seeing a new generation of leaders coming through the ranks who are programmatic-first,which we believe will lead to an even more rapid acceleration of automated,data-driven trading in the coming years.Everyone on the sell side should not just have
105、plans in place,but have established teams and practices ready to meet that demand as it evolves.3.Embrace first-party data The future commerce media solutions are powered by first-party data.Compared with the targeting capabilities offered by third-party cookies,thats a step change in terms of effic
106、iency and effectiveness.Instead of targeting potential customers based on a limited view of past behaviours and trying to nudge them towards a purchase on an unrelated site,brands will have the opportunity to build audiences based on rich data and proactively engage them at a time that theyre alread
107、y looking to buy.Technology and data will continue to empower brands to think less about the role of commerce media networks as a bottom-of-funnel investment and more about the role of retailers across the entire marketing funnel.However,as demonstrated in this study,sell-side concerns over marketer
108、 data use remain,therefore advertisers and their technology partners must be proactive in working with retailers to alleviate these concerns.25/27In association with:Published January 2023.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,el
109、ectronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|4.Increase responsiveness Put simply,ad tech can speed up ad trading.More than that,the ability to activate,optimise,r
110、eport,and adjust campaigns rapidly allows ad buyers to change their creative messaging or spending commitments very quickly.Proactively tackling challenges arising from emerging formats according to commerce media player requirements around identity,context,campaign planning,and outcomes and ensurin
111、g that buyers can transact with assurance and drive performance is top of mind for everyone in ad tech.Around the world,technology platforms are working to align and simplify access,thereby making it easier to buy and sell inventory across multiple channels.This exciting evolution will ensure all pa
112、rties are able to reap the benefits of retail media.5.Foster closer,customisable advertiser-retailer relationshipsWhile there are overarching trends for commerce media across Europe,there are significant differences across markets and retailer type/vertical,particularly in terms of the core drivers
113、and concerns regarding further commerce media investment.It is clear that there is no“one size fits all”model for commerce media,especially in a region as diverse as Europe.This fragmentation may prove daunting,however it represents an extraordinary opportunity compared to more monoculture digital a
114、d environments,such as search.Brand marketers and their agency partners must therefore work closely with commerce media sellers to identify their precise aims from their inventory,and ensure their specific concerns are addressed.Technology partners can form a critical role here,lowering the barrier
115、to entry for advertisers and commerce media companies that are concerned by this level of fragmentation,by offering customisable solutions optimised according to the mutual priorities of both buyer and seller.26/27In association with:Published January 2023.All rights reserved.No part of this publica
116、tion may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|6.Avoid the pitfalls of the network modelAny busin
117、ess with a direct line to rich first-party data from travel brands and telcos to rideshare and delivery services has an opportunity to deliver highly relevant ad experiences in the context of consumer touchpoints.Some will develop these capabilities internally,while most will do so via partnerships
118、of various shapes.Much of this value is currently being built around a network model,which poses a number of pitfalls that must be navigated.The word itself “network”harkens back to 2004,when digital advertising was exploding in size and scope.That model has evolved into the mature programmatic spac
119、e we now have,but the path to todays premium programmatic offerings wasnt an easy one.If commerce media wants to save itself a lot of growing pains,it should start by avoiding these pitfalls:Lack of transparency:Tapping into the network model at play during the early days of programmatic meant givin
120、g up a lot of control and visibility in terms of where ads were running and how each ad dollar was being divvied up.For both commerce media sellers and buyers today,such opacity should be completely unacceptable.Restricted revenue:In the early days of programmatic,ad tech represented a high-margin b
121、usiness at the expense of publisher margins.Today,the balance has rightfully shifted back,with tech margins coming down as the programmatic channels have scaled.But were already seeing this pattern repeat within the commerce media space,with certain partners demanding the lions share of each dollar
122、spent.Thats a pattern that needs to be circumvented before it takes root.Single points of failure:In the early boom days of programmatic,there were a lot of busts as well.When programmatic players folded,the clients who had put all of their eggs in a single basket found themselves in precarious(and
123、sometimes unrecoverable)positions.Commerce media players can avoid a similar fate by focusing on reputable,scaled partners and ensuring they work with several parties,not just one.This also encourages marketplace competition.Preventing data leakage:First-party data is extremely valuable to commerce
124、companies,and they must ensure their data is secure within the supply chain in order to maintain their competitive advantage.Loss of data security is not an acceptable price to pay to operate within the commerce media space.In association with:27/27Published January 2023.All rights reserved.No part
125、of this publication may be reproduced or transmitted in any form or by any means,electronic or mechanical,including photocopy,recording or any information storage and retrieval system,without prior permission in writing from the publishers.Copyright ExchangeWire L|ABOUT PUBMATICPubMatic(Nasdaq:PUBM)
126、is an independent technology company maximising customer value by delivering digital advertisings supply chain of the future.PubMatics sell-side platform empowers the worlds leading digital content creators across the open internet to control access to their inventory and increase monetisation by en
127、abling marketers to drive return on investment and reach addressable audiences across ad formats and devices.Since 2006,our infrastructure-driven approach has allowed for the efficient processing and utilisation of data in real time.By delivering scalable and flexible programmatic innovation,we impr
128、ove outcomes for our customers while championing a vibrant and transparent digital advertising supply chain.For more information,please visit AcknowledgementsExchangeWire and PubMatic would like to take this opportunity to thank the surveyed commerce media professionals.ABOUT EXCHANGEWIREExchangeWir
129、e provides news and analysis on the business of media,marketing and commerce with a specific focus on data and technology.We offer actionable market intelligence on the trends and innovations that are shaping the media,marketing and commerce industries.Were always interested in any technology and business-related news globally,and in particular across EMEA and APAC.Relevant companies are encouraged to get in touch.Were also interested in hearing from PR people working with companies in any of the areas named above.For more information,please visit