Brands are now using their own data to become media owners and generate valuable revenue.
We’re all familiar with grocers selling ad space to brands – in-store, in their magazines and online. These offer the retailers an important source of revenue but also inform customers of new product launches and offers, and so can help enhance the shopping experience.
It’s interesting to see this expanding to other companies that hold detailed customer data, such as Deliveroo, allowing them to also develop a valuable revenue stream.
This will drive loyalty if customers see ads that are targeted properly to them, making them feel understood. For instance, Deliveroo carried advertising for ITV X and Sky Glass. Both brands fit nicely with a night in with a meal delivery.
To achieve this, a careful balance must be struck. The needs of the customer should always come first – followed by the needs of the brand and then the media owner. Careful use of purchase or loyalty data allows brands to target shoppers according to what they purchase and so offer them something relevant and timely.
Programmes and clubs can further enhance this by using the richer data they hold. Delivering advice and information with timely communications tailored to shopping needs builds what we at Ingage call ‘brand warmth’. These communications can come from brands but must still deliver value for the customer – outside of just promoting discounts or offers.