Experian enters the Retail Media Market to come up with a solution for a long pending problem being faced by retail media networks (RMNs) – the capability to spot customers within their network and help ad makers reach them to measure the campaign’s impact. The solution can identify patterns in audience behavior to improve campaign effectiveness.
Retail Media Networks Got a 16.3% increment last year in the US alone as many ad makers leveraged their connections established with the shoppers. Experian, a global credit bureau, naturally owns a lot of critical customer data, making it a valuable partner in providing identity resolution in a privacy-compliant way to advertisers and RMNs. Advertisers can now hit more relevant messages to their customers in the RMN and increase their revenue generated from ads after making their networks appear more lucrative. Additionally, many Retail Media Networks (RMNs) offer advertising opportunities within their own channels (such as websites, apps, and in-store locations) as well as “offsite” methods to engage customers through Connected TV (CTV) and third-party websites. As RMNs continue to grow, the importance of identity resolution increases.
The Experian RMN solution comprises five key offerings:
- Customer Identification: Leverages the Experian Graph, covering 126 million households and 250 million individuals, to deepen customer insights based on first-party data.
- Enhanced Customer Insights: Produces detailed customer profile reports to identify high-value customers and create precise look-alike audiences for targeted campaigns.
- Audience Enrichment: Enhances first-party data with Experian Marketing Data or through Experian’s Partner Audiences network.
- Extended Campaign Reach: Expands campaigns beyond owned channels by collaborating with adtech partners to access programmatic, CTV, and social media platforms.
- Campaign Performance Measurement: Assesses campaign impact by connecting ad exposures across different channels to online and in-store purchases and actions.
Andrew Frank, VP and distinguished analyst with Gartner for Marketing Leaders, explained to MarTech that advertisers are facing growing pressure to justify their media investments as reliable performance data becomes scarcer. He noted that identity solutions can play a crucial role in linking conversions to ads, which is essential for demonstrating their value. Additionally, these solutions provide new customer insights with strategic importance.
Frank also mentioned that while it might be appealing to use identity resolution (IDR) for retargeting visitors who have recently shown interest in a product, this is where issues related to cross-site tracking become most apparent. He advised that advertisers should carefully weigh the trade-offs of using IDR for behavioral targeting in contrast to its use for measurement, insights, and optimization.
Frank remarked that Experian’s entry into the market indicates a growing viability of Retail Media Networks (RMNs) as a viable alternative to solely relying on the largest walled gardens for performance marketing. Despite Google’s recent reversal on deprecating third-party cookies in the Chrome browser, advertisers are looking for transparent, privacy-compliant options that align with customer expectations and data regulations.
He noted that RMNs must develop methods to measure and optimize ad performance to demonstrate their value to marketers. However, they must also be vigilant about privacy concerns, which suggests partnering with organizations that have compliance experience and legal expertise.
The Martech Conclusion
Experian’s entry into the retail media market is a significant development that could reshape the advertising landscape. By offering robust identity resolution and measurement solutions, the credit bureau is empowering retailers to compete more effectively with tech giants for ad dollars. As the industry grapples with the demise of third-party cookies, Experian’s privacy-compliant approach is particularly appealing to advertisers seeking transparency and accountability. While identity resolution is a powerful tool, RMNS must prioritize consumer trust and adhere to strict data regulations. Ultimately, the success of these platforms will hinge on their ability to deliver measurable results and create long-term value for both brands and consumers.
