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What is the importance of the Insights area for Retail Media?
Retail Media is a type of digital advertising where retailers use their channels to promote products and brands. What sets this type of advertising apart is the valuable information retailers possess about consumer behavior and their purchasing journeys. Using this data and aligning it with the brand’s objectives, it becomes possible to determine when, where, and to whom an ad should be displayed to achieve the best campaign results. This is where the Insights area comes into play. After all, it’s not enough to have data; it’s essential to know how to interpret it. Data sources can be transactional (purchase data), declared (from consumer self-reports), navigational (interaction with a website or app), or campaign performance-related.
What benefits can the Insights area bring to your Retail Media campaigns?
1. Optimize investments by reducing experimental spending and allocating budgets more effectively.
2. Segment audiences so the brand communicates directly with its potential consumers. Users also benefit by receiving relevant and meaningful content.
3. Identify the best ad format, message, and placement for each product type, combining user segmentation with experimentation to discover what works best in each case.
4. Understand your customer better, enabling the personalization of consumer experiences through tailored messages and offers.
5. Recognize market opportunities, such as identifying trending consumption categories or gaps in product availability in specific regions.
6. Determine necessary adjustments in pricing and product mix. In essence, Insights is a vital component of Retail Media, enabling data-driven decision-making, maximizing results, and enhancing consumer experience.
In the “Latin America Marketing and Retail Media Trends Survey 2024” presented by eMarketer, it is observed that local Retail Media players in Latin America are gaining prominence in brand recognition. Rappi Ads ranked third in awareness, behind only Amazon Ads and Mercado Ads, with a difference of just 6 percentage points from the second place. Furthermore, the same survey positions Rappi Ads in third place in the competition for budgets allocated to Retail Media.
Thus, to illustrate the practical benefits generated by this specialized Insights area, I will present successful examples from Rappi, which has been solidifying its position as one of the leading Retail Media players in Latin America:
1. Discovery of users with purchase intent: We identified consumers who
demonstrated purchase intent (searched for the product, read the description, or added it to their cart), but did not complete the purchase. These users were segmented and activated, generating fully incremental sales. As a result, 30,000 new users were converted, representing 14% of the sales during the analyzed period.
2. Evaluation of different creatives: We tested different advertising materials to understand how each communication impacts purchase intent among different audiences. Two distinct activations were carried out, each targeted to a specific cluster, and a survey was sent to collect self-reported data from users. This allowed us to identify which communication generated greater brand recall. As a result, we increased the purchase frequency by 55%.
3. Discount optimization: We assessed which type of discount optimizes resource allocation and generates the highest financial return. Three distinct campaigns were conducted (“Buy More, Pay Less,” percentage discount, and fixed discount), each applied to a specific cluster. We identified that the “Buy More, Pay Less” campaign generated higher spending per buyer, both during and after the campaign period, for the specific products tested.
Considering the above, the combination of technological readiness, appropriate tools, and creativity is essential for the success of the Insights area. When used strategically, this integration makes Retail Media campaigns more assertive and effective.