RETAIL DATA IS BECOMING INCREASINGLY IMPORTANT AS THIRD-PARTY IDENTIFIERS DWINDLE
We’ve been hearing it for a long time: Third-party cookies are expected to be phased out completely in the foreseeable future and there’s increasing uncertainty as to when or how that might come to be. Third-party identifiers are dwindling, and we as an industry must find better solutions so we can continue to reach the right audience.
Enter retail data. Retail data is quickly becoming one of the most powerful sources of data available, and one that we believe is a vital ingredient to any reimagined data strategy. Retail data often includes signals from in-store purchases and loyalty programs built from deterministic identifiers, providing a longitudinal view of the consumer. This data can often be highly customized based on regionality, demographics, and past purchase history. For brands with a nascent first-party data presence, retail data could be what extends their message to the right consumer at the right time. Alternatively, for brands that have already established their first-party data, retail data can add precision and scale to existing strategies while uncovering innovative ways to reach new customers.
HOW RETAIL DATA HELPED AN INSURANCE COMPANY EXCEED THEIR BENCHMARKS
Retail data can add profound deterministic signals that are aimed at helping programmatic practitioners and platforms make better decisions.
In a blind study, an insurance brand wanted to see how retail data would impact their goal of driving customer insurance quote requests, or “quote engagements.” The tests were designed to assess scalability and evaluate the value of retail data as a signal for driving bidding efficiencies.
The brand activated audience segments built on data from a leading retailer to reach their target customers, including new parents, auto enthusiasts, home improvers, technology enthusiasts, and video gamers.
Over the course of the tests, retail data was able to exceed historical benchmarks by over 160 percent.
Not only was the addition of retail data helpful in driving better bidding decisions, it also provided a wealth of new insights. If utilized correctly, the performance data and insights from retail data can become a recursive feedback loop for campaign efficiencies.
OTHER VERTICALS CAN BENEFIT FROM RETAIL DATA TOO
Even brands that don’t sell their products in a retail space have a growing opportunity to incorporate retail data into audience targeting strategies. A cruise brand, for example, could use the data with the goal of reaching families that frequently purchase sunscreen. An auto manufacturer that’s releasing a new truck might be reaching customers who frequently purchase home improvement products and are licensed contractors. A financial services or insurance company could aim to target recent college graduates or new parents. A cable provider looking to drive subscriptions in a new market could reach people who recently purchased smart TVs.
RETAIL DATA USAGE WILL LIKELY CONTINUE TO INCREASE
With third-party cookies expected to go away, bolstering your audience targeting strategy with retail data could yield big results, either on its own or as a complement to first-party data. If you’re advertising for a brand that sells a product in store or online, using retail data to reach your customers and find new ones is an easier transition. While the switch might not feel as intuitive for brands that don’t sell physical products, it’s well worth exploring.
Interested in leveraging retail data to help enhance your audience targeting strategy for your campaigns on The Trade Desk? Reach out to your account manager to get started today.