How Retail Media is Disrupting Marketing Structures with WARC’s Gregory Grudzinski
Aug 23, 2023
auto_awesome
Gregory Grudzinski, Head of Content for WARC Digital Commerce, joins The CPG Guys to discuss how retail media is disrupting marketing structures. They explore the challenges faced by CPG brands, the changing relationship between brands and retailers, and the shift in power from linear TV to retail media. They also discuss the impact of digital commerce on various aspects of a brand ecosystem and highlight optimal KPIs for measuring retail media performance.
Retail media is changing the relationship between brands and retailers, with brands relying on their customers as media brokers.
Return on ad spend (ROAS) and advertising cost of sales are key metrics for measuring retail media performance.
Winning companies in digital commerce prioritize cross-functional career paths, strong retail partnerships, and innovation in the digital space.
Deep dives
The Impact of Retail Media on Marketing Structures
Retail media is disrupting marketing structures by changing the relationship between brands and retailers. Brands are now in a position where their customers are their media brokers, and retailers have a vested interest in driving promotional investment on their platforms. The challenge lies in agreeing on how to measure performance and holding each other accountable. Brands are leveraging retail media to personalize their approach and reach shoppers anytime, anywhere. However, ethical considerations regarding data sharing and the need for standardized metrics need to be addressed.
Key Performance Indicators for Retail Media
The top KPIs for measuring retail media performance are return on ad spend (ROAS) and advertising cost of sales. Other important metrics include cost per acquisition, sales and order volume revenue, and cost per click. However, there is still no consensus on the ideal metric for retail media performance. Metrics like video view rate and new to brand are lower on the priority list, but their importance may increase as data and measurement capabilities improve.
Challenges in Developing Proficiency in Digital Commerce
Challenges in digital commerce include handling challenging pricing and profitability scenarios, adapting supply chains to fit e-commerce demands, and attributing online influence on offline sales. Getting budget approval and prioritizing e-commerce support are common challenges, but organizations have made progress in these areas. Incremental dedicated headcount is also becoming easier to secure as organizations understand the value of digital commerce.
Building Winning Companies in the Digital Commerce Space
Winning companies in the digital commerce space have made it clear to their organizations how digital works and have an evangelist driving the digital agenda. They prioritize cross-functional career paths and have a North Star guiding their strategies. These companies also have a higher risk tolerance and prioritize strong relationships with retail partners. Lastly, they are realistic about what their organization can accomplish and focus on building teams that understand and innovate in the digital space.
Insights from CPG Insiders
Insights from CPG insiders highlight the importance of content and winning at the digital shelf. These insiders emphasize the need for holistic understanding of digital commerce beyond just selling online. They also acknowledge the challenges in data sharing ethics, standardized metrics, and cross-functional collaboration. However, the winning companies are determined to develop proficiency in digital commerce and leverage its potential for growth.
The CPG Guys are joined in this episode by Gregory Grudzinski, Head of Content for WARC Digital Commerce, an Ascential Company that has been helping marketers and strategists Make it “WARC” since 1985.
Gregory answers these questions: 1) Gregory, your report looks at how retail media is disrupting marketing structures. Of all the factors at play, what prompted you to zero in on retail media? 2) How is Retail Media reshaping the traditional path to purchase, and how have brands had to adapt? 3) How is Retail Media changing the relationship brands have with retailers? 4) Looking beyond RM, how are functions like manufacturing, R&D, logistics, and supply chain being influenced by the move to digital commerce? 5) Based on the research you conducted, what are the optimal KPIs to use to measure retail media performance? 6) What do you see as some of the top challenges facing brands as they develop proficiency in digital commerce? 7) Your report presents some differing opinions regarding Centers of Excellence as a driver of digital transformation. Can you take us through it? 8) I see in the report you spoke with a number of CPG insiders about organizational change. What are some of the top attributes winning companies share?
DISCLAIMER: The content in this podcast episode is provided for general informational purposes only. By listening to our episode, you understand that no information contained in this episode should be construed as advice from CPGGUYS, LLC or the individual author, hosts, or guests, nor is it intended to be a substitute for research on any subject matter. Reference to any specific product or entity does not constitute an endorsement or recommendation by CPGGUYS, LLC. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent.
CPGGUYS LLC expressly disclaims any and all liability or responsibility for any direct, indirect, incidental, special, consequential or other damages arising out of any individual’s use of, reference to, or inability to use this podcast or the information we presented in this podcast.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode