Experian’s recent announcement of a solution for retail media networks (RMNs) is a significant development in the advertising industry. With RMNs experiencing a 16.3% growth in the U.S. last year, it is clear that advertisers are recognizing the value of leveraging retailers‘ deep connection with shoppers. Experian’s data-rich platform offers identity resolution in a privacy-compliant manner, allowing advertisers to deliver more relevant messages to customers within RMNs. This not only benefits advertisers but also increases retailers‘ ad revenue by making their networks more attractive to potential advertisers.
One of the key advantages of Experian’s solution is its ability to identify customers within the RMN network and help advertisers reach these customers effectively. By utilizing the Experian Graph, which includes data on 126 million households and 250 million individuals, advertisers can gain a deeper understanding of their target audience based on first-party data. This expanded insight allows advertisers to create detailed customer profiles and develop accurate look-alike audiences for their campaigns, ultimately improving campaign performance.
In addition to identity resolution and expanded insights, Experian’s solution also includes offerings such as audience creation, reach and distribution maximization, and measurement. These features enable RMNs to enrich their first-party data, expand their campaigns beyond owned channels to programmatic, CTV, and social media, and measure campaign effectiveness by connecting ad exposures to purchases and other actions online or in-store. This comprehensive approach to advertising within RMNs is essential for advertisers looking to justify their media investments and prove the value of their campaigns.
Andrew Frank, VP distinguished analyst with Gartner for Marketing Leaders, highlights the importance of identity solutions in tying conversions to ads and offering new customer insights with strategic value. However, he also emphasizes the need for advertisers to carefully consider the tradeoffs involved in using identity resolution for behavioral targeting, separate from measurement, insights, and optimization. Advertisers must navigate the complexities of cross-site tracking controversies and prioritize privacy compliance in their advertising strategies.
Experian’s entry into the RMN market signifies the increasing viability of RMNs as an alternative to relying solely on large walled gardens for performance marketing. As advertisers seek transparent, privacy-compliant alternatives in light of changing data regulations and customer expectations, RMNs must demonstrate their value to marketers through effective measurement and optimization of ad performance. By partnering with experienced and legally compliant providers like Experian, RMNs can navigate the evolving landscape of digital advertising while maintaining consumer trust and privacy standards.