Developing a unique, on-brand, and innovative advertising strategy is crucial for e-commerce retailers. Traditionally, a cornerstone of this strategy has involved leveraging paid digital content. But, as technology increasingly bleeds into every facet of life, retailers must face some new truths:
- As consumers become increasingly ad-blind, it’s not enough to simply run paid social media or utilize standard display advertising.
- The decline of third-party cookies and increased privacy laws means it is vital for brands to capture, manage, and nurture their own customer data.
These two simple facts have the power to turn most digital marketing strategies upside down.
As retail continues to face shifts in consumer expectations, retail marketers must account for the changing landscape. Strategies that create genuine connections with consumers, while optimizing resources, are vital to help retailers stand out and maximize opportunities.
The paid digital content dilemma
It’s no secret that paid content comes with its own host of challenges that extend beyond “banner blindness.” Brands utilizing paid advertising must walk a thin line of creating engaging advertisements and trusting they’ll show up at the right time, but not to the point of flooding their audience with high-frequency rates.
Not to mention, the upfront expense associated with a 360-digital campaign can seem like too much of a risk for many emerging retailers. And even for larger players, paid advertising can often feel like throwing money into a bottomless void without proper attribution frameworks.
At least, it used to feel like that.
New opportunities within the paid space are shifting the definition of success, from impressions and click rate, to actual consumer spend. This drastic change in opportunity allows retailers to not only significantly shorten the customer’s purchase journey and create an immediate connection with the customer, but even more importantly, allows brands to capture data directly from the source.
Retailers must build detailed, unique user profiles based on behavioral data, including purchase history, online browsing, social media activities, and location, in order to engage customers and provide a seamless shopping experience. Marketers can no longer rely solely on third-party methods to capture the necessary data, acquire consumers, and reach their desired demographic.
In a recent panel discussion at the GCVA Global Conference, Prizeout’s EVP of Merchants Holly Glowaty had the privilege of moderating a panel on the future consumer and addressed many of these trends.
On learnings from the panel, she said: “It’s a fascinating time in retail because consumers are concerned about data privacy and what companies are doing with their data while also showing a trend of being more inclined to commit their spending with certain merchants early on—particularly when they feel as though there is an additional value element and the brand clearly shows a benefit for engagement.”
New ad-tech platforms like Prizeout don’t just account for this shift in data and success metrics; they were built for it. Now that consumers have the power to choose what information they share with brands and when, it’s important that brands leverage platforms that give them the best shot at capturing conversion. When retailers have the ability to be in the right spot at the right time and lock in consumer spending in the moment, the new opportunities for growth and engagement become truly exciting.
It’s time for something different
Most retailers understand that the future of digital marketing will depend on providing exciting, innovative, cost-effective, and measurable advertisements to drive traffic and sales. However, a brand’s digital marketing strategy is far from set in stone, and as changes occur, it’s imperative for marketers to stay informed, make adjustments, and test new options to find what works for their brand and customer base. Marketers must account for the fact that customers are more educated than ever before. Brands must create relationships with customers by adding value and creating an engaging digital experience at every touchpoint.
Learn more about how Prizeout can fill the void between paid ads and data collection.
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