Ashley Royalty: Amplifying the Digital Shelf: Harnessing the Power of Retail Media Networks | SIC 2024

Join Ashley Royalty, GM of Add3SHOP, for a deep dive into retail media networks and discover how they are revolutionizing eCommerce advertising. With the digital shelf becoming the new battleground, Ashley will unveil strategies that leverage first-party data for hyper-personalized, performance-driven campaigns. Learn how to amplify your brand's presence with sponsored product ads, navigate diverse retail networks, and stay ahead of emerging trends like 'Research Online, Purchase Offline' and Gen Z's buying power. Don't miss this opportunity to gain actionable insights and elevate your brand's eCommerce success in an increasingly competitive market.

1. Retail Media Networks Amplifying the Digital Shelf

2. The Basics Discovery on Retail Media Digital Commerce Challenges 1 2 3 4 AGENDA

3. RMN: The Basics 1

4. What is Retail Media Directly measure retail sales to media dollars without 3P cookies Goldmine of 1st-party data Enable brands to reach shoppers with relevant ads near the digital point-of-sale on retailer websites & apps

5. Sponsored Products Virtual shelf space across Search, Homepages + Category placements to reach consumers that are ready to buy On-site Display Reach consumers in all stages of the funnel with b anners using ROS, behavior, contextual or keyword targeting Social Display OLV Off-site Digital Leverage 1P retailer data for targeting + measurement of offsite campaigns (direct / programmatic) Retail Media Channels

6. Lean into tentpole moments to create branded landing pages for your campaign Leverage Retailer’s email database & cohort segments to drive consideration + purchase. Reach the consumer on the larger screens. (Direct / programmatic) Retail Media Channels Branded Content Email OOH/CTV

7. Sponsored Product Ads 2

8. 2 out of 3 of online product searches start on retailer sites Source: Criteo Shopper Story, US, Share of searches starting on retail/brand websites and online marketplaces combined, July-August 2019, N=1013.

9. Growth in Retail Media Search Ad Spend Will Outpace Its Traditional Counterpart. Retail Media Search Ad Spending Growth Accelerates While Traditional Market Stalls % change in US retail media vs. traditional search ad spending, 2024-2028 Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones, tablets, and other internet-connected devices; includes contextual text links, paid inclusion, and paid listings; *includes digital advertising that appears on websites or apps that are primarily engaged in retail ecommerce or is bought through a retailer’s media network or DSP; includes ads purchased through retail media networks that may not appear on ecommerce sites or apps. Source: EMARKETER Forecast, March 2024

10. Make sure your products are visible when shoppers search for terms important to your brand EXAMPLE Gain increased visibility on PDP pages for cross-sell and complimentary-sell opportunities Increase your visibility of your products across key category and browse pages Desktop, Mobile Web & App Desktop, Mobile Web & App Desktop & Mobile Web Sponsored Placements Category/Browse Pages Search Pages Product Detail Pages

11. Prove Campaign Effectiveness Robust reporting closes the loop to truly understand the impact of your media with sales reporting at the product SKU-level Make your products visible to high intent & shoppers who are ready to purchase Activate your campaign quickly Set up and manage your campaigns in the easy-to-use platform, or use managed service Get your Product Ads live on retailers quickly . Target within 24-48 hours Set Up & Manage With Ease Immediately Impact Sales Sponsored Placements

12. 3 Elements of Sponsored Product Ads Choosing Your Network Bidding Methodology SPA use an auction based model Walmart uses a 1st price bidding auction. The bid is based on the max you are willing to pay per click Instacart uses a 2nd price bidding method Criteo utilizes a hybrid of 1st + 2nd price No Creative Required Amplify organic listings

13. Measuring Success: Beyond ROAS Incrementality +428% in incrementally test, US brand that ran sponsored product ads saw a +428% incremental return on investment. +160% EMEA brands that ran onsite display ads saw a 160% bump in sales per users. Hidden Loyalty Boosts +51% of brands around the world see improve shopper loyalty from their RM campaigns. On avg. Shoppers who make an attributed sale continue to buy from a brand 5X more within 6mos. Source: Criteo Retail Media Data, 2023-2024

14. Digital Commerce 3 Be Addressable Be Actionable Be Accountable

15. 14% of total media spending will rise to nearly a quarter. Omnichannel Retail Media Will Account for Almost A Quarter of All US Media Ad Spending in 2028 Billions in US omnichannel retail media spending, % change, and % of total media ad spending, 2024-2028 Note: Digital advertising that appears on a retailer’s on-premise signage, either in-store or in the immediately adjacent exterior (e.g. parking lot), appears on websites or apps that are primarily engaged in retail ecommerce, or is bought through a retailer’s media network or demand-side platform (DSP) Source: EMARKETER Forecast, March 2024

16. Accessing the Inventory Programmatic Self Service Direct with Retailers +

17. Access Walmart 1P data through Trade Desk API to create custom audience cohorts for the various PEMCO insurance services. Non-Endemic Brands Programmatic Approach in Action Cohorts to pursue: AUTO - Auto parts shopper HOME - Frequency grocery shoppers (family), home decor/furnishings Plan the right inventory to execute against Offsite: OTT/Display In Store OTT: Geo specific WA/OR

18. Regional retailers are making major moves in the retail media network space. As Grocery Dive notes, citing Placer.ai’s data, the “10 most-visited chains together only comprise 42.6% of total grocery visit share for last year.” The big retail networks may not cover all the consumers that marketers should be reaching. That’s because the smartest regional retailers have been building something special, unique datasets that can offer unmatched insight into the behaviors and preferences of consumers across specific localities.

19. Trend 1: ROPO Research online, Purchase offline. Customers don’t care about DTC / retailers; they choose convenience and loyalty programs. This means cross channel strategy + measurement are crucial for advertisers. 85% of consumers say that before making a purchase, they search online for promotions, discount codes, and offers. Disruptive Trends Trend 2: Closed Loop Measurement Retailers offering closed-loop campaigns off-retailer environments on the open web will close the funnel and tie together awareness & sales data. Trend 3: Gen-z Buying Power 58% of the Genz demo is considered young adult & not reliant to their parent’s wallets. Their buying habits stem from influencers & streaming -- an area where retailers are going to need to capitalize on (like walmart + amazon).

20. Biggest Challenges Facing Retail Media 4

21. Challenge Due to inconsistencies in ad types and measurement, it’s difficult to compare retail media networks (RMNs). What This Means for Advertisers Advertisers need to do their own analysis or work with 3rd parties to understand how one campaign performs compared with another. On average, brands work with six RMNs in the span of a year, according to an August 2023 survey from Coresight Research. Lack of Standardization

22. Challenge Traditionally, lower-funnel and upper-funnel marketing efforts are managed by separate teams on the brand side. What This Means for Advertisers Brands need to look at budgets holistically to prevent redundant spend or missed marketing opportunities. What This Means for Retailers Retailers need to communicate the true value of retail media networks in order to unlock ad spend. Siloed Budgets

23. Q&A

24. Thank You THANK YOU