Introduction to Retail Media Advertising.pptx

Retail media refers to advertising placements directly on retailers’ digital properties (websites, apps) and off-site.
It offers highly targeted advertising directly at the point of purchase. Examples include Amazon Ads, Walmart Connect, and Instacart Ads.
This was my first experience talking about retail media in my Advertising Management class. Looking forward to hearing your thoughts and suggestions

1. Retail Media A New Frontier in Advertising Ivan Fedorenko, Cal State university East Bay

2. Agenda Introduction to Retail Media Retail Ad Platforms: Amazon Ads, Walmart Connect Inventory: Sponsored Products, Shoppable Ads Key Metrics for Retail Media: ACOS & tacos Useful Tools: Off-site DSP and Ad Reporting

3. What is Retail Media? Retail media refers to advertising placements directly on retailers’ digital properties (websites, apps), and sometimes off-site. It offers highly targeted, data-driven advertising directly at the point of purchase. Examples include Amazon Ads, Walmart Connect, and Instacart Ads.

4. The Rise of Amazon Ads Amazon is the largest player in retail media, with a significant portion of e-commerce ad spending. Amazon leverages user purchasing behavior to serve personalized ads. Inventory: Sponsored Products, Sponsored Brands, Sponsored Displays, and Video ads.

5. Advertising Inventory on Amazon Ads

6. Ad Formats Sponsored Products : Pay-per-click ads that appear in search results and product detail pages. Sponsored Brands : Ads that showcase multiple products in a banner at the top of search results. Sponsored Display : Retargeting ads that can appear on and off Amazon. Video Ads : engaging formats that run on Amazon’s owned media, including Prime Video.

7. Walmart Connect - A Major Challenger Walmart Connect has expanded significantly in recent years, aiming to become a major player in retail media. Ad Formats: Sponsored Search, Display Ads, Video Ads, and Off-Site Ads (across partner websites). Advantage: Walmart’s vast physical and online presence provides robust first-party data.

8. Ad Types on Walmart Connect Sponsored Search: Ads triggered by search queries on Walmart’s website. Sponsored Products: Ads that appear alongside related product listings. Display Ads: Targeted display banners on Walmart.com and across its partner sites. Shoppable Video Ads: Interactive ads that allow users to add items directly to their cart.

9. Customers increasingly use Retail Media instead of traditional search engines

10. Off-Site Retail Media DSP Off-site Retail Media Ads refer to advertisements run by retail media platforms, such as Amazon and Walmart, outside of their own websites. These ads are placed across various digital properties (such as social media sites, search engines) to drive traffic back to the platform. Off-site retail ads allow brands to expand their reach beyond the retailer’s native website. Amazon and Walmart use data from their platforms to target customers on external sites like Google, Facebook, or Instagram, redirecting them back to the retailer’s site

11. Instacart Ads: Driving Grocery Sales through Targeted Advertising Instacart Ads provide brands with the ability to promote their products directly to shoppers across Instacart’s platform. Sponsored Product Ads: These are ads that appear directly in search results and the homepage as featured products. In-Grid Ads : These are placed within the product grid, looking like standard products, but are paid placements to drive attention Shoppable Ads: Display and Video with a selection of products that consumers can add to their cart with one click. Shoppable Ads bring crave-able moments to life—like backyard BBQs—by giving consumers the ability to instantly add items to carts.

12. Instacart Ads Sell Sheets Besides “pull” ads directed to consumers, Instacart ads enable brands to target retailers to increase distribution (“push” ads). Sell sheets are marketing materials designed to provide essential information about a product. On Instacart, Sell Sheets allow brands to communicate key product details, pricing, and promotions to convince retailers on the platform to include the product in their stores.

13. Key Metrics for Retail Media ROAS (Return on Ad Spend): How much revenue is generated for every dollar spent on ads. CTR (Click-Through Rate): The percentage of people who click on the ad after seeing it. CVR (Conversion Rate): The percentage of clicks that lead to a purchase. Impressions: The number of times an ad is shown.

14. Key Metrics for Retail Media: ACOS & TACOS

15. Key Metrics for Retail Media: ACOS & TACOS

16. Amazon Ads Toolbox Amazon Marketing Cloud allows advertisers to analyze their campaigns across Amazon’s Ads ecosystem. AMC measures campaign performance across different touchpoints and provides insights into how multiple ads are contributing to conversions. For example, advertisers can use AMC to analyze whether a consumer first clicked on a Sponsored Ad and later saw an off-site Display Ad before making a purchase. Amazon Shopper Panel is a program where participants can earn rewards for sharing receipts from purchases made outside of Amazon and completing short surveys. This tool allows Amazon to gather insights on consumer behavior beyond its platform. Brands can learn, for example, if its target audience frequently purchases similar products at physical stores or other websites.

17. Amazon Ads Campaign Reporting Campaign reporting provides advertisers with metrics available through the Amazon Ads console and Amazon off-site DSP reporting. Reporting includes standard industry metrics such as impressions, clicks, and sales, as well as proprietary Amazon metrics such as new-to-brand, Brand lift & Save Conversions* Amazon Brand Lift surveys provide a way for advertisers to quantify the impact of upper- and mid-funnel campaigns on brand awareness via assisted and unassisted brand recall questions

18. Amazon Ads CTR & CPC A click-through-rate (CTR) is the total number of clicks your ad gets divided by the total number of impressions. If you get 1 click on your ad per 100 impressions, then you’ll have a 1% CTR.

19. Amazon Ads Key CVR & ACOS Cost-per-click (CPC) is the amount you pay when a customer clicks your ad. Amazon PPC is a second-price auction, so the price you pay is just a penny more than what the next highest bidder is willing to pay for that keyword. For example, if you bid $2 and the next highest bid was $1.00, then your CPC would be just $1.01 even though the highest bid was $2. The conversion rate on Amazon is the percentage of clicks on your ad that converts into sales.

20. THANK YOU Ivan Fedorenko [email protected] Video Introduction to Amazon Ads What is ACoS on Amazon? Walmart Sponsored Products | Campaign Types Walmart Sponsored Products | Available Ad Placements Readings Walmart and Peacock team up on shoppable CTV ads Amazon Advertising Stats 2024 (Badger) Instacart Ads Tools Instacart Ads Academy