How commerce media differs from retail media

3 ways data clean rooms help solve retail media’s data and measurement challenges AUGUST 12, 2024 [3 ways data clean rooms help solve retail media’s data and measurement challenges]( Nearly two-thirds (66%) of US data and ad professionals have adopted [data clean rooms]( as a result of privacy legislation and/or signal loss, according to February 2024 data from the Interactive Advertising Bureau (IAB) and BWG Strategy. Since data is at the core of [retail media]( success, enabling brands to [target and measure]( campaigns more accurately, it’s not surprising that data clean rooms have come into play. Here are three ways [agencies]( and [retail media networks]( are using data clean rooms to help brands more effectively target and measure their campaigns. 1. Matching purchase data with behavioral data With data clean rooms, retailers, brands, and media partners can combine data to create a more robust, privacy-safe view of the customer. “You can get beyond simple purchase data and start to target based on a series of actions,” Riyaad Edoo, executive director of commerce at EssenceMediacom, said during a recent IAB roundtable discussion. “That gets to the psychology of the consumer, their behavioral patterns or passion points, the characteristics and their triggers.” Machine learning helps brands take it one step further. “You can uncover all sorts of interdependencies that we never would have found [without the help of that technology],” said Edoo. “ What does churn look like? What are the optimal touch points or sequencing of touch points look like? What is the cost per acquisition relative to each one of those?” Story continues below. 2. Connecting online ads to in-store sales CVS Media Exchange (CMX) offers ad inventory across its website, [mobile]( app, and off-site channels. However, the majority of CVS purchases happen in-store, according to Praveen Menon, head of analytics and business intelligence at CMX. - Historically, it’s been challenging for brands to connect online and in-store behavior. But data clean rooms, like the one CVS partnered on with Pinterest, can help. - “We can cross reference our CVS Extra Care member purchasing habits with Pinterest’s data, which allows us to kind of report back performance with a high degree of accuracy to our supplier partners,” said Menon. 3. Informing future retail media investments Data clean rooms enable brands to identify where their investments are most effective. “One of our biggest wins with data clean rooms is when we use it as a baseline to inform channel investment,” said Kavita Cariapa, senior vice president, head of commerce activation at Dentsu. “There’s always a question on how and where to invest, especially as retail media networks are expanding their inventories.” With clean rooms, Dentsu can advise its clients where there are incrementality opportunities or where they should prioritize their share on the shelf. “It’s become a robust guideline for how we analyze data and consult with our clients to make sure their investments are profitable and that they’re not wasting impressions,” said Cariapa. [Read online]( [How is commerce media different from retail media?]( Commerce media is knit together by the use of first-party commerce data to power targeted advertising. But beyond that foundation, the strengths, use cases, and challenges can vary depending on the vertical. Key differences include: - Depth and breadth of purchase data. Retailers and commerce intermediaries are most likely to have access to granular, SKU-level data, which can unlock precise targeting capabilities—and attract the budgets of consumer packaged goods (CPG) brands that make up a significant share of digital ad spend. On the other hand, financial media networks (FMNs) are less likely to have access to SKU- or brand-level data but can tout their holistic view into consumers' cross-merchant purchase behavior. There is another benefit: visibility into information like mortgages and loans, casting a wider net for potential advertisers. - Closed-loop attribution capabilities. Companies that directly facilitate transactions can offer endemic advertisers closed-loop attribution, painting a clear picture of an ad’s impact on conversion. New verticals entering the commerce media space include companies that do not directly sell the products they are advertising, which creates a more complex path for measuring campaign performance. - Many companies that are launching media networks aren’t building digital advertising businesses from scratch. For many new players in commerce media, launching a media network is not their first foray into advertising. Instead, these companies are revamping existing advertising solutions by incorporating first-party purchase data, enabling more relevant targeted ads, and using that data for both on- and off-site advertising. [Read online]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2024 EMARKETER, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](