MediaRadar | April 08, 2022
MediaRadar recently published a report that sheds light on top brands' overall expenditure on retail media, such as Amazon, Target, and Walmart.
Retail media has always been the area of interest for the consumer packaging goods industry. The plethora of brands worldwide does not shy away from spending big money on the platforms like Google and Facebook. According to MediaRadar's report, retail sales in the US have touched $4.5 Mn in 2021 alone. And this figure stands to be lucrative for the retail media networks. Moreover, this report states retail media has gained $3Bn+ through more than 35 thousand brands since May 2021.
The report by MediaRadar explains the causes behind this phenomenal spending in retail media. The acquired addressable audiences provide hundreds of millions of data points to the companies like Amazon. This massive amount of data points includes the purchase level data of millions of people. (e.g., hundreds of millions of Prime subscribers)
The retail industry does not depend on third-party data. Third-party cookies are seeing a downfall as companies like Apple and Chrome implement ways to eliminate them together. Instead, the retailers use first-party, shopper-level data to deliver timely and relevant ads. Moreover, the regulations and data privacy concerns through GDPR and CCPA have made collecting and using consumer data more complex than ever. However, retailers get precious consumer data from the consumers themselves.
Consumer electronics companies, telecom service providers, software tracking technology companies and security technology companies have made the tech sector a top spender in retail media, which is followed by the food and retail categories, respectively.
Within MediaRadar's tracking period (May 2021-Jan 2022), Amazon spent more than $1.36 Bn on ads, of which 45% was spent on retail media. Collectively Amazon, Walmart and Target have spent $2.3Bn on the advertisement. Since May, CPG brands have bought over $500 million on ads, accounting for around 17% of all buys (across 22 sites).
Big CPG players like Mondelez, Hormel, Unilever and Kellogg took advantage, spending over $20 million and as much as $46 million to promote their brands.
The CPG giants Mondelez, Hormel, Unilever and Kellogg are top players in the race of ad expenditure, pointing towards their improvised approach in media strategies due to the constantly rising e-commerce market.
Although, given this trend, retail media may appear crowded; however, the brand interest in this media category remains prominent and sustaining.
ADVERTISER CAMPAIGN MANAGEMENT
PenFed Credit Union | February 11, 2021
PenFed Credit Union, the nation's second biggest federal credit union, today reported the launch of its massive advertising campaign in the Washington Dulles International Airport. The "PenFed Saves You Money" advertising campaign is situated in perhaps the most intensely trafficked zones inside the air airport: the passage interfacing withdrawing and showing up United Airlines Hub passengers between Concourse C and the AeroTrain station heading to move flights and Main Terminal.
"PenFed is in a perfect position to ramp up our presence here in our hometown Washington region while also reaching travelers from across the nation," said PenFed Credit Union President/CEO and PenFed Foundation CEO James Schenck. "PenFed is proud to serve a mobile membership. We continue to move forward together and gain momentum. We're already off to a great start welcoming new members in 2021 after closing out a record year in 2020."
The advertisements highlighted in the tunnel located between United Airlines Hub Concourse C and the AeroTrain Station incorporate two massive wall wraps parallel to the moving walkway and six adjacent pressure texture divider shows with light and sound highlights.
The "PenFed Saves You Money" incorporated showcasing campaign was at first launched in November of 2020 with multimedia messages proceeding to run in markets across the U.S. highlighting how members from the military and civilians both save money through PenFed's incredible rates.
Perpetua | January 15, 2022
Perpetua, a global leader in eCommerce advertising and intelligence software today released their 2021 Q4 Benchmark Report showcasing the most important trends and metrics on Amazon, to help inform marketplace advertising strategy. Included in the report this year are Q4 benchmark ad performance for Instacart, Walmart and Target.
Perpetua's 2021 Q4 Benchmark Report is based on performance data from campaigns under Perpetua's management. With Q4 being the most competitive quarter of the year with Black Friday Cyber Monday, and holiday shopping, Sponsored Display CPC was up 20% quarter-over-quarter. This is the highest jump across all paid search ad units on Amazon and may partly be attributed to more advertisers taking advantage of Sponsored Display's newly released features (including custom creatives and purchases remarketing). Along with placements being more expensive, there was also a drop off in CTR and ROAS. It is worth noting however, despite all the above, customers who are clicking through are converting at a 13% higher rate compared to Q3.
“Advertising proved to be an important piece of this holiday season as consumers increased the rate at which they clicked on ads while reducing the amount of products they considered. This led to a relatively steady ROAS for advertisers despite CPCs rising over 30%,” says Adam Epstein, President at Perpetua. “Also worth noting, in Q4 we saw more advertisers push their marketing budgets higher up the funnel with a goal to attract more new-to-brand customers. We expect this to continue through 2022 as Amazon continues to increasingly capture more brand-awareness budgets from advertisers with DSP and OTT to drive incremental sales growth.”
While Amazon Sponsored Brand ads are typically an upper-funnel strategy, it has become increasingly effective at driving sales with greater efficiency than Sponsored Product ads. As such, advertisers have shifted budget towards Sponsored Brands where spend has increased 39% in Q4. Increasing competition and CPCs has been the story of Amazon Advertising for the last year. It is an optimistic sign to see CPCs flatten this quarter amid the most competitive season of the year, along with the expected increase in CVR, sellers are seeing an overall boost in Sponsored Product efficiency.
Perpetua is building the growth infrastructure for eCommerce which includes optimization and reporting technology for the world's smartest eCommerce businesses. Through the platform, advertisers create goals based on strategy and leverage Perpetua's best in class experts and automation to execute tactically. Integrations with Amazon, Instacart and Google ensure brands achieve optimal reach and engagement across the full shopper journey, and provide unified performance intelligence for maximum visibility.