Why would a brand advertise on a retail media network if they can’t box up and ship their product? To answer that question, I’ll explain what non-endemic retail media advertising is and why you should consider it for your non-packaged goods brand.
What is non-endemic advertising?
Brands engage in non-endemic advertising when they purchase ad inventory from a retailer whose site does not sell that brand’s product or services.
Why is it effective?
As data privacy continues to trend across the open web, the first-party data that retail media networks house has become immensely valuable. Retailers often have a decade-plus of shopping behavior data for a certain household or individual that reveals far more about their habits than just what they search for. Access to this rich, anonymized retail customer data can be a game changer for your brand when it comes to seeking out new, incremental audiences.
That’s not to say that this should replace search advertising, though. For search ads to be effective, you need a catalyst—a broken-down car, a mole-infested lawn, or a clogged drain. Your brand can be more proactive than that.
How does it work?
Retail media sites can segment their audiences by using dozens of first-party data traits such as habits, behaviors, basket size, and geography. Brands can advertise to these tailored audiences with managed and self-service options, driving them back to their own websites or personalized landing pages.
Imagine targeting viewers of HGTV’s “Property Brothers” with home decor or home maintenance services based on the drywall they recently purchased.
Registries also tell us a lot—not just what people need, but their geography, price sensitivity, and potential service needs. The same can be said for tentpole events like Black Friday and retailer-specific sales like Amazon Prime Day.
What kinds of companies should consider it?
Companies that sell services like insurance, financial, legal, real estate, and education are a great fit. It’s unlikely someone is looking on Amazon or Kroger’s website to search for those services, but people who purchase from those sectors are most certainly shopping on these sites.
Non-endemic advertising is also attractive to D2C brands that want access to the eyeballs of a national retail network without having to fork over a chunk of its profits to the platform.
How do I get started with non-endemic advertising?
The first step is to research the retailers themselves and their shopper profiles. Do they match up to who you’re looking for as a customer?
When you’re ready to start conversations with retailers and demand-side platforms, be sure to discuss minimums, goals, and budget. If you have access to a platform already, you can search and filter on your own to see what is available for targeting.
Once you narrow down retailer selection, budget, timing, and audiences, it’s the usual setup for creative needs, tagging, and landing page selection.
Ready for a quality, net-new, incremental source of leads, traffic, and sales? Once you go non-endemic, you might never go back.
—Elizabeth Marsten, Vice President, Commerce Strategic Services