How to Build a Retail Media Network in 15 Minutes

Aug 21, 2024

25:31

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Next in Media spoke with Daniel Folkman, Gopuff's SVP of business, about the company's growing footprint in the ad business despite the fact that he thinks there are way too many retail media networks.

Takeaways:

• Business Overview and Evolution: Gopuff started over 10 years ago, focusing on delivering convenience products like snacks and drinks. It has since evolved to carry over 5,000 SKUs, including groceries, home essentials, and alcohol.

• Target Customer Demographics: Gopuff’s primary demographic is 18-35 year olds, with a strong focus on young parents.

• Sustainable Business Model: The company uses its funds to build infrastructure, technology, and fulfillment centers, focusing on long-term sustainability rather than short-term customer acquisition.

• Retail Media and Advertising: Gopuff entered the retail media space with its own advertising platform, which leverages the company’s unique selling points: instant delivery, a young and targeted demographic, and specialized consumer data.

• In-house Ad Platform: Gopuff decided to build its ad platform internally to maintain control over its unique consumer data and optimize targeting.

• Future of Retail Media: The company sees consolidation challenges in the retail media space, arguing that many current retail media networks are not sustainable long-term.

• Customer-Centric Advertising: Gopuff focuses on delivering ads that feel like relevant content rather than spam. This strategy aims to enhance user experience while also improving ad performance and profitability.

Guest: Daniel Folkman

Host: Mike Shields