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Home Advertising

Are you ready for the future of ads?

Why retailers and e-commerce platforms must act now.

by Daniel Levy
January 27, 2025
in Advertising
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Are you ready for the future of ads?

hose who use data-driven strategies to monetise their audience can unlock new revenue streams, and future-proof their business in a highly competitive world/Freepik.com

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Retailers and e-commerce platforms are no longer just selling products – they’re selling access to audiences that are primed to purchase.

The fact that it’s now possible to monetise valuable first-party audience data – collected directly from customer interactions online and offline – is transforming the entire field of advertising.

For decades third-party cookies were the cornerstone of digital advertising, enabling brands to reach their audiences. However, increasing privacy regulations and the threat to phase out cookies have disrupted this model.

The silver lining? Retailers and e-commerce platforms already have a wealth of first-party data – direct insights into customer habits, preferences, spend and behaviours.

This data is a goldmine for creating targeted, effective advertising campaigns.

So how can retailers seize the opportunity?

Despite the immense potential, some retailers have yet to fully embrace the shift, sticking to familiar strategies and traditional advertising models, in other words, fishing in the same pond.

By embracing change, retailers have the chance to pioneer, lead and establish a new norm: Those who thrive in the coming years will be those willing to experiment and invest in their data. The rest risk being outpaced by more innovative competitors.

This shift isn’t optional. In the next few years, off-site advertising – that which extends beyond a retailer’s owned platforms – is expected to grow from 10% to 30% of the global retail media mix.

Ignoring this evolution may mean losing a large chunk of market share to those who can successfully transform their data into revenue. And after all, who wouldn’t want a piece of the largest ad budgets in the world through Google and Meta?

Success isn’t automatic

What’s clear from sales data is this: media spend will soon be captured and dominated by those who can connect their audience data with brands that are looking for high-value targeting.

But capitalising on opportunities takes more than just recognising the value of customer data. It takes readiness to adapt, the right tools, and a crafted strategy to unlock the potential of your audience. Here, Levy offers four key moves retailers need to make to stay in the game.

  1. Put your first-party data to work

Successful retailers prioritise collecting, analysing, and activating customer data. Insights gained from both online and offline interactions then allows them to create personalised unique advertising strategies.

For example, they’ll know that a customer who regularly buys organic produce can effectively be targeted with ads for natural cleaning supplies or reusable bags.

  1. Advertise beyond the aisles

Retailers need to remember they aren’t confined to their own websites or apps. With off-site advertising, they can extend the targeting of their audiences to platforms like Google, Meta, TikTok, and even streaming services. This approach ensures their customers are being reached wherever they spend time online.

Retailers already have rich insights into what their customers want. Off-site advertising ensures these insights aren’t wasted. And with closed-loop measurement – which refers to tracking the customer journey from ad to purchase – retailers can confidently measure their campaigns’ success.

  1. Tap into neighbouring industries

The real game-changer lies in partnerships with non-endemic or adjacent brands. These are companies outside a retailer’s primary industry. Such collaborations open new revenue streams by connecting audiences with relevant products and services.

For example:

  • A grocery retailer could let fitness brands advertise health supplements to their health-conscious shoppers.
  • An electronics retailer could partner with insurance providers to promote extended warranties.

These partnerships are mutually beneficial. Retailers and e-commerce platforms unlock new revenue, and the non-endemic brands gain access to highly relevant audiences. Flow simplifies this process, generating demand from brands outside retailers’ core categories and ensuring no opportunity is overlooked.”

  1. Streamline with smart solutions

Embracing audience monetisation doesn’t have to be complex. Retailers can use turnkey software solutions to simplify and streamline the process of activating and monetising their data.

For example, Flow provides the tools and expertise to automate off-site ad campaigns, maximise ROI, and connect retailers with brands looking for high-value audiences. By partnering with us, you can stay ahead without the burden of heavy investments or operational complexities.

Adapt – or risk falling behind

In short, the future of advertising isn’t for everyone. It’s for retailers and e-commerce platforms ready to adapt, innovate, and take bold steps… and do it now.

Those who use data-driven strategies to monetise their audience can unlock new revenue streams, and future-proof their business in a highly competitive world. Those who don’t are in danger of being left in the dust.

Daniel Levy is co-founder and co-CEO of commerce media platform Flow. If you’re ready to make a move, we’re here to help. Flow is a powerful off-site commerce media platform that helps retailers and marketplaces activate their audiences.


 

Tags: advertisingaudienceaudience databrand partnershipsDaniel Levye-commercefirst party dataFlowpersonalisationretail advertisingretailersreturn on investment

Daniel Levy

Daniel Levy is co-founder and co-CEO of Flow, an adtech company. He started his career as a commercial attorney before co-founding and serving as CEO of Popimedia, Africa's largest ad-tech and performance marketing company - a Facebook Marketing Partner. In 2015 he sold Popimedia to French-based global communications group - Publicis, third largest communications group in the World.

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