Retail Strikes Back

15 de May de 2019 Off By morse

Digital media redesign is on the hands of no less than the supermarkets. And markets. And service applications. Companies like Walmart and Target are already making moves to create their own media platforms, while apps show their networks’ strength for ads coupled with the services they offer. For brands, the offset these companies have is not contemptible: we know what users buy (and we can predict when they will do it again).

The game seems to have turned, does it?

Who opened this path was Amazon, which, in 2018, achieved US$ 10 billion in revenue with ads (twice as much as in 2017, we should add), and this year, it is expected to receive 8.8% of the total publicity in the United States – the third biggest receptor of this money. Walmart does not fall behind:  in February, the American retail giant bought Polymorph Labs, an ad tech startup. Target, another large retailer, remodeled its media and ad network, now called Roundel, to turn it  into an agency able to service other companies.

Data is money

The main reason for this big retailers’ “pivoting” lies on Big Data (as usual, guys!). it is Kroger that shows it – the third largest retailer in the world bought Dunhumby’s data area and created the 84.51º, an analytics and intelligence tool, back in 2015. Since then, the company has made acquisitions in this area and strengthened its media platform. The result? Partnerships with brands such as Unilever and General Mills and the expectation of generating an additional profit of US$ 400 million by 2020.