New Partnership Promises Boost to Retail Media Networks
Just when we thought it was safe for the ad-tech industry to rest on its analytics and measuring prowess two decades into the 21st century, it turns out new levels of sophistication are being reached by retail media networks.
Take the measurement of foot traffic into physical spaces such as retail, hospitality, and real estate. After all, it’s 10 years since Apple implemented iBeacon into its operating systems. That blue-tooth technology enabled retailers that had installed transmitters to send push notifications to nearby smartphones about sales, deals, and other potential interests to drive in-store traffic. And it was measurable.
Never mind that many successful retailers still measure foot traffic the old-fashioned way: an employee stands at the entrance using a clicker each time a customer enters. (We’re looking at you, Costco.)
Placer.ai, a SaaS company with a subscription model, goes deeper still by providing analytics on physical locations so that prospective retailers can see how the competition is doing and how well their own physical space can optimize foot-traffic trends and in-store/on-site behavior using demographics and other customer identifiers.
Vibenomics, an in-store digital advertising provider, has just announced it is partnering with Placer.ai so the former can construct addressable solutions for display, audio, and experiential ads at retail. Owned by Mood Media, Vibenomics has deployed holistic retail media networks in thousands of retail stores in the U.S. For example, Vibenomics’s visual and audio displays at gas stations run ads while customers fill up their tanks. The company has worked with Kroger and CPG brands such as Pepsi.
In statement about the partnership, Paul Brenner, SVP of Retail Media and Partnerships of Vibenomics, said, “The combination of Vibenomics in-store audio and display solutions with Placer’s insights and analytics will empower retailers and brands to make informed, effective advertising decisions that yield better results.”
As a marketing channel, retail media networks have grown exponentially with Amazon, Walmart, and Instacart among the largest out there. Recent data from eMarketer showed that that digital retail media ad spending was $13 billion in 2019 and could reach $61 billion in 2024.
These networks, both physical and digital, rely heavily on retailers’ first-party data and privacy-aligned third-party data. Promotional messaging in both places pushes the customer journey further to possible sales conversion. In other words, proximity matters a great deal. And attribution is a cinch.
Placer.ai goes deep into local sales potential. When the Nebraska State Fair wanted to sign sponsors at higher rates than before, it used tapped Placer.ai, whose data revealed that attendance in previous years had been undercounted by 20 percent. This data and Placer.ai’s recommended audience activation solutions, projected deeper engagement, and enabled the organizers to charge more for sponsorships.
While the world locked down during the Covid-19 pandemic, a publicly traded real estate investment firm called Alpine Income Property Trust searched for investment opportunities. Remember, this was when physical spaces were being avoided, and e-commerce skyrocketed. The company’s portfolio contains single-tenant and commercial income properties and didn’t want to put a foot wrong amidst so much uncertainty.
Still, Alpine wanted to invest in a big-box retail property that it discovered was for sale. In stepped Placer.ai, which conducted a sales and performance data analysis that showed the property had been undervalued. Alpine proceeded with the purchase and was able to re-sell it at a profit.
“Given that retail media networks are a growing and increasingly important revenue driver for brick-and-mortar stores, increasing exposure and impressions is critical for many retailers,” said Ethan Chernofsky, SVP of Marketing at Placer.ai. “This partnership should do just that.”
