Change is the only thing you possibly can depend on in digital marketing. Banner ads and social media campaigns + shifting consumer behavior and privacy regulations = something latest. Retail media networks (RMNs) are an enormous a part of that something.
RMNs let brands reach consumers with laser-like precision after they are able 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 show how RMNs can revolutionize promoting as we understand it.
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“When you’re Unilever and also you’re selling products in the heat of the moment, in real-time when anyone is able to buy, it’s not the right move to place something on Facebook or Snapchat or in a Google search result,” he said.
The zero consumer: A brand new breed needs a brand 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 promoting strategies:
- Zero boundaries: They expect seamless brand experiences across online and offline channels, demanding consistency and personalization no matter 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 trying to find 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 an organization’s ethical stance.
So, traditional marketing, counting on broad targeting and impersonal messaging, won’t work.
A case study in real-time personalization
Unilever saw “The Zeros” as a powerful target market for Ben & Jerry’s latest 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 put ads strategically for the latest 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 his or her willingness to explore latest flavors.
This case study underscores the potential of RMNs to succeed in the right consumers at the right time with personalized messaging that drives conversions, far surpassing the reach and impact of traditional promoting methods.
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“They actually met the people at the moment in time they were craving this latest dessert ice cream,” Svikas said. “Their low price 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 depend on third-party cookies,” he said. “The reach on that could seem tempting, but the transparency won’t ever be as accurate as a retail media network would.” RMNs provide superior transparency and measurement capabilities in comparison with walled gardens.
- Prioritize measurement and continuous optimization: Track campaign performance, analyze results and adapt strategies based on real-time insights to maximise effectiveness and ROI. Continuous measurement is significant because “one retail media network may be just right for you today. It won’t be just right for you tomorrow.”
- Operate in real time: Emphasize agile campaign management, real-time data evaluation and quick adjustments to capitalize on consumer behavior shifts. Remember, today’s consumer “has zero boundaries, zero patience and nil loyalty.” Swift motion is critical to capture their attention and drive conversions.
Getting the most from RMNs means using data-driven, privacy-conscious, real-time personalized promoting strategies. It will even put you in a very good position when the next change comes along.
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