This month our CEO, Sam Knights, shared his insights on the future of ad targeting with a leading online resource for customer experience professionals, MyCustomer. Sam explores how retailers hold the keys to ethical data use, outlining four key strategies to stay ahead and build lasting trust with your audience.Here are our key takeaways…
Growing Concerns About Privacy and Data Usage
With 11 US states implementing consumer privacy laws and 81% of consumers expressing worries about how companies handle their personal data, brands are increasingly concerned about the impact on advertising targeting and personalization. The impending cookie-pocalypse adds to these concerns, as brands fear less relevant ads and decreased returns on ad spend.
Retail Media Networks as a Privacy Solution
In Europe, where data protection laws are stringent, retail media networks are emerging as a solution to privacy challenges. Retailers, as primary data owners with explicit, permission-based data linked to shopping behaviours, are in a powerful position. Responsible data collection and permissions provide advertisers with significant opportunities to leverage these networks for more effective and targeted campaigns.
Key Considerations for Advertisers in Europe
Advertisers in Europe are encouraged to embrace retail media networks to navigate privacy legislation and consumer concerns. Four key areas of consideration include:
Building a privacy-compliant tech stack: Ensuring all elements comply with privacy regulations and adapting dynamically to changes.
Earning customers’ data: Providing value and transparency to customers when collecting data, with examples like loyalty schemes offering preferential pricing.
Using data effectively: Balancing granularity and scale in customer targeting to avoid wastage.
Linking data back into the store: Leveraging first-party data in an omnichannel way, such as using digital screens to target customers in-store based on their preferences.
Success Hinges on Ethical Data Use
Ultimately, success in navigating the privacy landscape is tied to ethical data use. Advertisers must do the right thing for customers, providing value in exchange for data and using it responsibly. Building trust over time enhances the brand's reputation and increases the value of media for advertisers.
Stay at the forefront of the advertising revolution and discover how retail media is shaping the future of ad targeting by exploring the complete article here.
Who are SMG?
SMG, part of the Next15 group, are the global leaders in connected commerce marketing based in London and New York. With a track record of trading over £1 million in retail media daily, SMG has 15 years of experience connecting brands with shoppers during consideration and purchase. Their expertise includes evaluating over £1.25 billion in historic media investments to inform shopper marketers' decisions.