1、But the market needs to deliver more transparency and control as usage grows RETAIL REPORT 2023|U.S.Retail data is changing the game for U.S.advertisersRetail data is changing the game for U.S.advertisers 212345IntroductionBenefitsOpportunitiesChallengesRETAIL REPORT 2023|U.S.Whats nextRetail data i

2、s changing the game for U.S.advertisers 3The Trade Desk Intelligence conducted an advertiser study with Material+and surveyed 201 marketers in the United States.The respondents teams were responsible for media planning,strategy,and buying;national/brand marketing;e-commerce marketing;SEO;and/or shop

3、per marketing.All respondents held the rank of manager or above and played either a significant or sole role in deciding where advertising dollars were spent.Fieldwork was conducted between April 11 to May 10,2023.The following research is focused on the growing opportunity and use of retail data,re

4、tail media and retail media networks(RMNs)by advertisers in the U.S.For clarity in this report and to maintain consistency with the definitions that survey respondents were given,we are defining these as follows:Retail dataData that retailers collect about their business and consumers,such as sales

5、and loyalty card data.Retailers can share these insights with advertisers to help them reach their target audiences and measure sales at those retailers.Note:retail data can be offered via a third-party platform or via RMN depending on the retailer.Note:retail data can be offered via a third-party p

6、latform or via a RMN depending on the retailer.Retail mediaThe inventory owned and operated by retailers on their e-commerce sites,such as display ads and sponsored search results.Retail media networks(RMNs)An advertising platform provided by retailers that gives advertisers access to the retailers

7、first-party data(retail data),allowing them to reach more targeted audiences and measure sales at the retailer,and to their on-site inventory(retail media),and to their on-site inventory(retail media).Introduction Disclaimer:Unless specified otherwise,all results reflect the proprietary research con

8、ducted by the Trade Desk Intelligence and Material+.The Trade Desk provides this information for general knowledge and does not make any representations or guarantees of any kind with regards to the future performance of the information set forth.Retail data is changing the game for U.S.advertisers

9、4E-commerce giant Amazon launched the first modern retail media network in 2012.In recent years,dozens more networks have popped up from virtually every major U.S.retailer,offering advertisers countless options to tap in to retailers first-party data to better inform their digital media buys.This ph

10、enomenon was only reinforced by the COVID-19 pandemic,which had the knock-on effect of boosting e-commerce and,in turn,making e-commerce sites some of the most valuable online real estate.But retailers quickly ran out of online monetization opportunities on the properties they owned and operated and

11、 began to look for revenue elsewhere.At the same time,advertisers started preparing for regulatory and identity changes most notably,Googles planned deprecation of third-party cookies from Chrome by 2024.Retailers need to grow their media businesses beyond their e-commerce platforms,combined with ad

12、vertisers aim to future-proof their activations and hold media accountable,led to a win-win opportunity:global retailers extending their media business to the open internet.Advertisers are now able to leverage retail audience segments in a self-service manner to reach verified category buyers and el

13、iminate waste from consumers who would never buy their product.This is especially true for premium inventory such as Connected TV(CTV),which is increasingly bought programmatically.Off-site retail solutions can also help advertisers close the loop between digital ad exposures and actual sales,allowi

14、ng them to hold brand ad spend accountable to outcomes that truly matter.Advertisers are set to leverage these offeringsAccording to a new national survey-based study from The Trade Desk Intelligence,91%of U.S.advertisers plan to maintain or increase their investment in retail data in the next few y

15、ears.This includes 38%of U.S.advertisers that expect to keep the same investment and over half(53%)who say they will increase their spend.Whats more,nearly three-quarters(68%)of advertisers that do not currently use retail data say they plan to use retail data in the future.The former group say they

16、 expect to increase their investment in retail data by an average of 27%and intend to allocate additional funds to their digital media planning and strategy teams as well as their e-commerce teams.This could indicate that these advertisers will continue to use retailer solutions to reach specific au

17、diences,as well as to activate campaigns across digital media channels including CTV and to control frequency across digital media channels.Other ways these advertisers can potentially use retail data include gathering insights about customers and leveraging machine learning to help optimize campaig

18、ns mid-flight.Potential benefits of using retail data in omnichannel advertising campaigns1 BenefitsBenefitsBenefitsBenefits5Retail data is changing the game for U.S.advertisersRetail data is changing the game for U.S.advertisers 6Retail data is particularly valuable since it comes from verified pur

19、chases and loyalty programs.This can be especially crucial for brands in industries such as CPG,which may not have their own robust first-party datasets and are looking for better ways to reach their target audiences.Retailers have years or even decades of purchase data,which allows them to build re

20、levant,predictive lifestyle and life stage segments.These customer targets can often replace third-party browsing-based cookie segments and help brands reach consumers based on their actual purchases within their lifestyles or stages of life,furthering their ability to tie ads directly to results.Th

21、is is true of both endemic and non-endemic advertisers.So far,many marketers are using retail data to reach customers throughout the path to purchase and to make more informed ad buys,help spend their advertising budgets more efficiently,and maximize ROAS,among other potential benefits.In addition t

22、o retail loyalty and purchase data,around half of all advertisers report that entertainment data(48%)or customer loyalty data(71%)would be useful to their business.Meanwhile,as consumer attention continues to fragment across channels,its more important than ever for advertisers to implement omnichan

23、nel marketing strategies.This is where retail data can come in handy it helps advertisers reach the right consumers,no matter where they consume media.Some advertisers are also increasingly seeking out easier ways to work with retail data partners,such as through platforms like The Trade Desk,which

24、works with a marketplace of top retail data providers in the U.S.and across the globe(The Trade Desk Data Partners).Benefits7Retail data is changing the game for U.S.advertisers2 OpportunityOpportunitiesOpportunitiesOpportunitiesThe opportunity for brands Retail data is changing the game for U.S.adv

25、ertisers 8How sweet it is Take the ice cream newcomer Halo Top as an example.This 11-year-old brand is owned by frozen treat giant Wells Foodservice,which also manufactures ice cream brands such as Blue Bunny.Wells wanted to reach potential Halo Top customers at different stages on their paths to pu

26、rchase with a more effective media plan.Not surprisingly,most Halo Top sales take place in stores.This is why Wells needed to understand how its media investment contributed to store sales to drive the highest ROAS.By using Krogers retail data offering via The Trade Desk for audience targeting and s

27、ales measurement,Halo Top was able to target current ice cream buyers,lapsed ice cream buyers,and buyers who had purchased ice cream from competitors.The subsequent omnichannel campaign included display,mobile,online video,audio,digital out-of-home(DOOH),and CTV.The result?470%ROAS and 117%media sav

28、ings.When the latter was reinvested in further placements,Halo Top drove a four-to-sixfold increase in frequency.It just fits Clothing manufacturer Fruit of the Loom is another brand that relies heavily on brick-and-mortar sales.However,as e-commerce continues to grow,the clothing brand looked to re

29、ach consumerswho shopped through other channels as well.For its 2023 back-to-school campaign,Fruit of the Loom worked with The Trade Desk and Walmarts DSP,Walmart Connect,to reach potential customers where they consume media.Whats more,to maximize ROAS,in-flight measurement and optimization allowed

30、the brand and its agency to understand how display and video ads were performing.Fruit of the Loom also benefited from Walmarts first-party data and predictive audience segments,which ultimately resulted in ROAS that was 20%higher than previous back-to-school campaigns.OpportunitiesRetail data is ch

31、anging the game for U.S.advertisers 9Unique audience segments The benefits of retail data are not limited to endemic advertisers or those that sell products on-site or in-store.While the majority of advertisers surveyed by The Trade Desk were associated with retail brands,about 20%represented other

32、verticals.Many of these non-endemic brands have worked with The Trade Desk to tap in to the power of retail data as well.For example,cruise line companies could use retail data to target families who purchase sunscreen frequently,while an auto manufacturer with a new truck model could reach out to c

33、onsumers who often purchase home improvement products.Its not all theoretical one insurance brand wanted to use retail data to drive quote requests.By working with a large retailer and its first-party data,the brand created audience segments to target new parents,auto enthusiasts,home improvers,tech

34、nology enthusiasts,and gamers.In the end,this insurance brand was able to exceed its historical paid media benchmarks by more than 160%.3 ChallengesChallengesChallenges Challenges10Retail data is changing the game for U.S.advertisersRemaining challengesRetail data is changing the game for U.S.advert

35、isers 11In order for U.S.advertisers to truly avail of all the benefits retail data has to offer,the industry must first address several challenges.There is a market need for more education about how retail data can help brands.While 81%of U.S.advertisers are reportedly using retail data,The Trade D

36、esk found that less than half(44%)consider it data that is collected directly from retailers about their business,such as sales and loyalty card information.This gives marketers an opportunity to educate themselves and feel more empowered to tap in to the full potential of a retailers first-party da

37、ta set by implementing this data across marketing campaigns.According to eMarketer,there are over 40 U.S.retail media networks in operation as of June 2023.In the U.S.,57%of advertisers say that they were willing to use up to a maximum of four retail data partners.Furthermore,35%say they are current

38、ly using four or more,a percentage that has more partners than doubled from 15%in 2021.ChallengesThis proliferation of networks has also created a few pain points.For example,advertisers also reported feeling overwhelmed by the number of potential retailers to activate against.This is in part why 57

39、%say they prioritize working with the biggest and/or most relevant retail media networks.Amazon Advertising(57%)and Walmart Connect(45%)are the top two retail media networks that advertisers report advertising on in the last year.This is followed by eBay(24%),Etsy(19%)and Target Roundel(18%).Meanwhi

40、le,advertisers say that their biggest challenges with retail media networks are they are not interoperable;theres no visibility into campaign performance;and they lack self-serve programmatic tools.However,this may come down to perception,as some platforms(including The Trade Desk)enable visibility,

41、transparency,and self-service tools.In addition,95%of advertisers report having challenges related to the walled-garden environments of retail media networks.In addition,63%of U.S.advertisers say that“a centralized self-service platform that includes integrated planning and buying tools”would be a m

42、otivating factor when activating retail audiences and/or measurement on a DSP.Retail data is changing the game for U.S.advertisers 12Brands should think about the return on investment(ROI)of retail data not just ROAS.While the adoption of both retail data and retail media networks is expected to inc

43、rease in the coming years,price remains a concern for 51%of U.S.advertisers.Seventy-three percent of U.S.advertisers currently use a DSP to activate retail data told The Trade Desk that retail measurement is too expensive,while 66%agree with the following sentiment:“My team does not have budget or r

44、esources available to allocate to activating retail data on DSPs.”However,working with DSPs could lead to cost savings in the long run,as they typically have more control over reaching the right audience across different media channels and connecting these touchpoints to sales outcomes to prove ROI.

45、Whats more,media platforms can help advertisers control ad frequency and optimize campaigns across all digital channels.As a result,retail data may prove to be a worthwhile investment for capitalizing on high-quality data typically derived from verified purchases.Because retailer data is of high qua

46、lity and deterministic,it is well-positioned to remain future-proof even as cookie deprecation looms.This can provide another level of value for advertisers looking to reach people who are in the market for their products and services.Some advertisers found that once they began activating with a sel

47、f-service retail data solution,they saw better performance across a variety of KPIs,along with the flexibility to optimize and manage frequency,which can lead to greater efficiency and keeping media costs low.When a retailer data marketplace lives on a centralized platform,it can allow for the cost-

48、efficient,closed-loop measurement of retail data.Top 5 challenges involved in using RMNs61%57%55%54%54%Only effective for lower-funnel marketing Lack of self-serve programmatic tools RMNs lack of interoperabilityLack of campaign performance visibility/transparency RMNs are too expensive/costs are in

49、creasing Retail data is changing the game for U.S.advertisers 13Individual shoppers can see your ad up to 60 x a weekRetailer 2CTVAudioOOHDisplay/videoF-cap=10 xRetailer 3CTVAudioOOHDisplay/videoF-cap=10 xRetailer 5CTVAudioOOHDisplay/videoF-cap=10 xRetailer 1CTVAudioOOHDisplay/videoF-cap=10 xRetaile

50、r 4CTVAudioOOHDisplay/videoF-cap=10 xRetailer 6CTVAudioOOHDisplay/videoF-cap=10 xRetailer Marketplace:Target|Optimize|MeasureRetailer 1Retailer 2Retailer 3Retailer 4Retailer 5Retailer 6CTVAudioOOHDisplay/videoF-cap=10 xIndividual shoppers can only see your ad up to 10 x a weekvs.Retail data is chang

51、ing the game for U.S.advertisers 14Retail sales measurement data can also provide valuable signals for brands looking to optimize creative,device type,audience segments,etc.using nearly real-time sales data to maximize ROAS.Closed-loop measurement from retailers also enables brands to ensure that th

52、eir omnichannel digital media spend results in corresponding increases in online and in-store sales,including TV ads that are served via CTV.The brands that do activate retail data via a DSP,however,they see the benefit that the self-service marketplace of retailer data can bring to their omnichanne

53、l campaigns.Full-funnel marketing strategies benefit from retail data Only 37%of survey respondents say that they dont expect to use retail data to measure upper-funnel tactics in the future.This ultimately limits the impact retail data can have for these advertisers,as they may use it as a last-tou

54、ch attribution tactic rather than a core component of their full-funnel marketing strategies.Advertisers look to DSPs for their centralized self-service approach.DSP is a centralized self-service platformOmni-channel inventory offeringsBrands can activate first-party dataReal-time data to make campa

55、ign optimizations mid-flightAudience data from multiple retailersAvailability of quality data at scaleEasy-to-use industry leaderData security/privacyBest-in-class customer support63%59%57%57%56%55%53%51%50%*Among respondents currently activating retail data on a DSPMotivations for activating retail

56、 data on DSPs*Retail data is changing the game for U.S.advertisers 15Advertisers are eager for innovation in the space.Many brands clearly state that they want a centralized solution with more transparency and control.They also anticipate using retail data in an increasingly omnichannel way to help

57、reach customers throughout the funnel,make informed ad buys,spend their advertising budgets more efficiently,and maximize ROAS.The Trade Desk can meet advertisers increasing needs for applying retail data,solving current roadblocks,and increasing transparency.Top future retail data use cases for adv

58、ertisers 1234Use first-party data to activate/target audienceActivate campaigns across channelsGather customer insightsMeasure campaigns across channelsIn order to do so,advertisers would likely benefit from additional tools to help them better reach their target audiences and optimize their campaig

59、ns.They also want to exert more control over the execution,citing a centralized self-service platform and real-time reporting as advantages of using DSPs,according to The Trade Desks study.Retail data is changing the game for U.S.advertisers 16Whats nextWhats next4 Whats nextWhats nextRetail data is

60、 changing the game for U.S.advertisers 17In the not-so-distant future,we expect to see an increase in the use of retail data in channels like CTV.Meanwhile,brands will likely learn to leverage multiple retailers data to maximize the efficiency of their campaigns and reach the right consumers.At the

61、same time,shoppers expectations of brands and retailers are only likely to increase,and retail data can help meet their needs.Soon,shoppers may demand online/offline shopping experiences,such as immersive virtual reality(VR),as well as personalized ads that make it easier for them to find relevant p

62、roducts.Retailers have the opportunity to provide an equal-value exchange to their consumers,giving loyalty members the choice to opt into(or out of)marketing.This means that consumers who are part of a retail audience have agreed to be there,resulting in a more intentional audience.This addressabil

63、ity is why retailers purchase data is so valuable and why its expected to become the backbone of effective identity solutions as advertising moves away from its dependence on third-party cookies.In addition,retail data can help advertisers build long-term digital strategies.Brands that meet consumer

64、s expectations with cohesive,seamless experiences informed by data will thrive in the next era.Whats nextA media platform built for the open internetThe Trade Desk helps brands and their agencies advertise to audiences across millions of ad-supported apps,websites,and streaming providers all around the world.Our media buying platform is focused solely on the buy side,empowering advertisers with the data,transparency,and precision they need to reach and grow their audiences everywhere.We help power the content that fuels the free and open internet.For more information,contact us here.