Across e-commerce sectors, the buzzy surge of enthusiasm for retail media networks continues. For both retailers and advertisers, retail media networks enable unprecedented access to audiences — and to first-party data — that deliver significant insights and value. These networks have become essential components of retailer revenue growth plans and brand advertiser strategies alike.
Retailers today generally understand the advantages of a flexible, secure, privacy-preserving data collaboration platform — powered by a modern data clean room — when setting up a retail media network. From simplifying and accelerating workflows to empowering your teams, a data clean room can dramatically streamline your retail media network deployment.
But there’s another key consideration emerging for retailers that points toward clean room adoption: competition. The fast-growing retail media network market is now worth $45 billion, and that’s triggered an explosion in the number and variety of retail media networks. As a result, brands have plentiful options when it comes to committing their advertising dollars, and they’re becoming increasingly selective in their choices. A modern data clean room can give a retailer the edge by providing precisely the capabilities that advertisers are wishing for.
Delivering value to advertisers is critical
According to a recent McKinsey report, retail media networks now bring in somewhere between 10% and 15% of total media spend, and 73% of advertisers across industries expect to increase their retail media network outlays in the coming year. For retailers, that’s the good news. The challenge is that advertisers are not only dividing their spend among an average of four retail media networks, they are also quick to shift networks if they don’t see the results they expect — and fully 27% have done so in the last year.
The message to retailers? To stand out in today’s market, you need to up your game quickly. Maintaining and growing revenue in the current environment requires an innovative, highly differentiated retail media network offering that delivers real value to advertisers.
Look to advertisers’ priorities
Reviewing the results of McKinsey’s advertiser survey data gives retailers a clear picture of the retail media network capabilities they need to offer. Advertisers’ top five reasons for choosing a their retail media networks are the following:
- Stand-out performance (meaning better ROAS)
- Access to audiences not available elsewhere
- Transparent, auditable data operations
- Timely, accurate, granular insights
- Scale that other vendors can’t offer
Clearly, advertisers are focused on solving for pain points specific to the current state of the market: the pressing need for productive advertising that yields results, frustration with diminishing access to audiences in the era of data privacy, and challenges around simple and clear data operations and reporting.
Take your retail media network to the next level with Habu + Databricks
Fortunately for retailers, Habu and Databricks offer a modern data clean room solution backed by an advanced data analytics platform that provides your retail media network with next-gen capabilities to meet — and exceed — advertiser needs and expectations. Retailers can now truly supercharge their media networks to propel revenue growth.
Habu provides an advanced data clean room software solution with industry-leading multi-cloud orchestration capabilities. Meanwhile, the Databricks Lakehouse enables retailers to streamline and centralize the collection of all shopper data within a unified analytics platform. Together, Habu and Databricks provide a unique and comprehensive solution offering advertisers data collaboration at scale:
- Full interoperability with no data movement — Securely connect to and utilize data wherever it lives, without moving any of that data.
- Flexibility for collaborative data science — Advertisers are moving quickly into advanced data analytics and machine learning tasks such as model training. Utilize a modern data clean room to deliver a secure environment in which retailers can support any arbitrary compute.
- Enterprise-grade privacy and governance — Give advertisers unrivaled, privacy-preserving access to sensitive data and IP that they would not normally be able to analyze.
- User experience for any use case — Speed advertiser time to insight with a clean room that offers pre-written analytics for common business use cases and APIs for developing advanced analytics and integrations.
- Multi-party collaboration — Leverage templatized analytics that save time by allowing you to efficiently work with multiple advertising partners across multiple clean rooms and via natural language frameworks.
By partnering with Habu and Databricks, retailers can effectively transcend advertiser challenges with superior performance, transparent reporting, and valuable insights into audience behavior and preferences.
Habu will be attending the Databricks Data+AI Summit, and you can catch our Data Clean Room Primer session on June 27 at 12 pm PDT.
In the meantime, learn more about the possibilities of data collaboration with The Definitive Guide to Data Clean Rooms from Habu and Databricks.