[Dossier] The new era of retail media

At the heart of the digital ecosystem, digital media knows no crisis. E-commerce (130 billion euros in 2021), which has been praised by the French over the past two years, is exploding, and the online advertising market is engulfed in this economic dynamism. “The market slowed down to a lesser extent in 2020, as of 2021, and the market regained its pre-Covid momentum with a growth of 29% compared to 2019,” The IRS declares. Numbers from 27e The E-pub Observatory, produced by Oliver Wyman for SRI and Udecam, reports good public health with a recovery in all digital advertising tools in 2021, a 24% increase compared to 2020 or 7.7 billion euros in revenue.

Media sales increased by 42%

The retail media market as a whole, which mainly includes display ads on e-commerce websites and sponsored results on their search engines, has seen Revenue increased 42% compared to 2020. Indeed, the increase in advertising revenue from merchant sites increased by 69%, compared to 2019. Of the total €640 million, 62% or 395 million is generated via retail search (+56%) (income from sponsored links in search engines). retailers) and 38% or 245 million euros across the offer (+25%) (classic, video and OPS formats sold by players in their inventory). And therefore , Retail search now accounts for 12% of search.

“The growth of retail media is driven by market consolidation through the formation of partnerships between key players, the launch of platforms, the increase in automated sales and the emergence of new advertising formats”

“The growth of retail media is driven by market consolidation through the formation of partnerships between key players, the launch of platforms, the increase in automated sales and the emergence of new advertising formats,” Details Silvia Tassan Tovola, Head of SRI. The strength of retail media is being closer to the buying process. This leverage allows e-commerce brands and major retailers to monetize their audience, and brands to increase their sales by targeting customers.

From the consumer side, the advantages of this new advertising medium ensure advertising in the customer experience and in the buying journey. The ad that appears targeted and geographically located with the best promotion. For the user, this technique does not harm his experience and does not lower the conversion rate.

On the brand side, one big advantage of this mechanism is that brand-paid advertising relies on the retailer’s data to increase its visibility via a premium on-site or mobile. It is targeted advertising in favor of a brand on the articles referenced on the merchant’s site. “It’s a bit like gondola ends inside a store to generate brand preference,” Geoffroy Martin, Executive Vice President and General Manager, Growth Portfolio at Criteo, a leader in the target advertising market, commented.

Market Structure, Market Structure

Retail media, which accounts for 8% of digital advertising in France, is attracting increasing interest. This new form of advertising marketing, already well established across the Atlantic — $40 billion in the US as of 2024 (according to eMarketer) — is driving distributors to Form strategic alliances and advertising agencies to structure themselves to meet the requirements of their clients regarding the media plan. Havas (Ad to Basket) and Publicis (Epsilon) have just made huge investments to get into the race for this booming market.

“For brands, retail media enables access to large audiences, without resorting to third-party cookies, and by linking advertising expenditures directly to sales results.”

“For brands, retail media makes it possible to reach large audiences, without the use of third-party cookies and by associating advertising expenditures directly with sales results. Moreover, in the digital age, brands are more vulnerable to security issues. It provides a safe place and suitable for online advertising investments. It is an efficient ecosystem that helps to add value to brands, drive a better offer to customers, monetize site visits and data” Jeffroy Martin decoders. Côté retailers, l’année 2021 a vu le développement de plateformes unifiées utilisables de manière autonome, qui sont en mesure de relier l’investissement média aux ventes et de mesurer l’impact business d’unetant activation publicit quí, the shop. These new solutions are provided by players such as Carrefour Links, Infinity Advertising, Conso Régie, Critéo, Cdiscount Advertising, Amazon Advertising and MyRetalink (managed by Fnac-Darty). “Retail media is a safe haven for brands where the key to growth lies in the consumer,” Alexandra Sawyer, Director of Retailink (Managing Fnac-Darty), explains.

Carrefour’s European ambitions

In June 2021, Elodie Perthuisot, CEO of E-Commerce, Data and Digital Transformation for the Carrefour Group, announced the launch of Carrefour Links: “The retail media market is growing strongly in all our geographies. Carrefour is already a leader in this booming market since its retail media operations in France registered a growth of more than 50% in 2020.” Carrefour wishes to develop its market share in this business by relying on a strategy to customize its offer. The distributor’s latest results, published in mid-February 2022, indicate 20% growth in food e-commerce activity and the retail media platform had more than 150 industry partners at the end of December. “It’s yielding very promising initial results,” Refers to the group. Carrefour has set itself the goal of being the leading European data and retail media company, and expects this activity to generate €200 million in current additional operating income (COI) in 2026 compared to 2021.

In the context of accelerating the digital work within the group (2.8 billion digital investment over 5 years as part of the Carrefour 2022 plan), the retailer launched this new activity, which focuses on the analysis of the brand’s “first party” data (browsing and transaction data). “On the one hand, we know that 80% of our customers – the increasingly comprehensive channel – expect personalized offers, and on the other hand, we note that brands want to reach consumers more effectively through digital marketing. Carrefour links respond to these expectations”, says a group spokesperson. To bring this new offering to the market, the brand has teamed up with three technology partners: Criteo (targeted ads), Google (cloud), and LiveRamp (secure data). The strike force is real: 80 million families around the world buy from Carrefour every year and the food e-commerce site is the leader in traffic in France. The Carrefour solution combines all advertising formats with an open ecosystem. Thus, advertisers can campaign across retailers across a single platform that allows them to aggregate data and have a global view of the performance of their advertising operations,” Criteo, technology partner, argues.

Casino and Intermarché رد

In the same vein, the Casino Group and Intermarché are also taking a stand by launching “Infinity Advertising”. This structure, (5 brands and 17 million listings), headed by Jerome Sabati, a member of Intermarché, is managed by Alban Schleuniger, of “RelevanC”, a subsidiary of the Casino group located in the data. This new player appears in a very convenient context for campaigns on merchant sites. With the explosion of food e-commerce during confinement, the digital advertising market gained 3 years in 6 months. “E-commerce sites have become a major crossroads for audiences, with some reaching 18 million unique visitors per month. This is an opportunity for brands. We suggest activating levers on site (brand site-sponsored search and display) but also offsite (internet consumer targeting)” , Alban Schleoniger, CEO of Infinity Advertising explains. Thus, during his digital journey, a customer who owns one of the group’s loyalty cards will be able to get more effective targeted advertising. “We introduce brands, through customer navigation analysis, to see if push advertising has affected their shopping cart. The interest of retail media is in measuring ROI”, The general manager argues.

Guaranteed efficiency

Face à Carrefour, Links, l’offre d’Infinity Advertising dépasse les 24% de PDM soit 17 millions d’encartés sur les sites des enseignes complémentaires comme Intermarché, Monoprix, Franprix, Casino et Hypermarché Géant et 41,5% sur le in France. “In addition, we have two types of offers and a one-stop shop, a unified offer, for brands with a guarantee of reaching one in four consumers. Our offer is a point of contact, single billing and a unified campaign balance sheet. In a highly fragmented and still young market, we are simplifying access to these campaigns for advertisers or media agencies without the need to add partners. It’s a response with a simple, robust and accurate solution against Gafa’s first-party data” Alban Schleoniger continues.

Another major player positioning itself in the retail media is the Fnac-Darty group, which launched its platform called “MyRetalink” in September 2021. Used independently, the omnichannel data sharing and digital media activation solution allows brands to better control their marketing strategies and customers of both brands to enjoy individual experiences that are more aligned with their changing needs. “This platform is available to everyone, from a sales manager to a media merchant. A supplier, for example, can easily identify a loss of momentum in their sales, and the risk of running out of stock before launching a campaign. A trader can set their goals by easily navigating between more than 200 preset audience segments. Create before activations, optimize its purchases in real time and measure the impact of the end-to-end channel”, Alexandra Sawyer, Director of Retailink by Fnac Darty confirms.

Challenges to overcome

Even if retail media is driven by the increase in sales of automated spaces and the success of new advertising formats such as direct shopping, Google, Meta and Amazon still dominate the market, which holds 67% of the market share in digital advertising in France. To encourage a rebalancing of digital investments, advertisers must be reassured about the transparency and reliability of solutions, as well as about the profitability of their investments. Finally, the collection and use of data (Browse and buy information) remains more strategic than ever for retail traders. Those who have embarked on the fray keep their sights set on 2022 with growth prospects for the digital advertising market estimated at 9 billion (+18% vs. 2021) demonstrating the acceleration Post-Covid growth.

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