Frederic Civit , Head of Commerce at Nestlé Spain; Pedro Travesedo , Managing Director Spain at Adsmovil and Joaquín Sánchez , Integrations Lead at Topsort shared this panel moderated by Marta Gil , Head of Speaking at Chiefs .
The three speakers shared their experiences on both sides of the retail media, a sector dominated by Google and Facebook, where there is still a long way to go. In this regard, Frederic explained that in his opinion "retail media is in a stage of evolution in which many retailers still do not have technology that allows segmentation by user, by time slot, etc. Brands will have to start thinking about whether retail media can be something more than a channel to convert, to create awareness, to build the funnel from a more comprehensive point of view."
In this debate, about what the objective of retail media should be, Pedro stressed that “in the end, the metric in retail media is the return. Brands are looking for return.” In this sense, he explained that “the expectations of that ROAS have to be different depending on whether the user is inside or outside the store: a range of 5 to 8 when they are in the store. When they are outside, that range goes to 1 to 5.” In any case, the speakers agreed that ROAS is a basic metric, but there are other aspects to consider: “if we are getting new users, if we are gaining market share… each campaign is different ,” Pedro commented.
In any case, Joaquín explained to us that “it is curious to see how companies arrive with the ROAS metric, the return on investment, on an altar, and that metric is the one that must be taken care of, but benin number data over time they evolve and end up sacrificing it in favor of exposure . ” Thus, he made it clear that he perceives that “it is very interesting to generate awareness, to have dynamic banners on generic pages that allow giving visibility to brands.”
As for how a giant like Nestlé approaches its retail media campaigns, Frederic explained that they use this channel “on Amazon, in brick and mortar stores (Alcampo, El Corte Inglés) and wherever opportunities appear. Historically, retail media has been linked to a sales strategy, to conversion. Now it is about convincing the teams that this is not about “sales and marketing”, but rather about a whole funnel that goes from top to bottom. It is true that in the current situation 80% of the budget is still put into the lower part of the funnel, in conversion, but we are rebalancing it. We are talking about trying to reach 25% of all that we invest in digital dedicated to retail media.”
Frederic was also very pleased with the evolution of retail media and what it brings to companies like Nestlé: “ Before we used to shoot flies with cannons and now, although we may be paying more for that impact, it is a much more efficient impact.” An improvement in measurement that Pedro and Joaquín also agreed on. “The important thing is traceability: what the user who comes to the store buys and what he doesn’t buy. What product he buys, what category, has that purchase increased… That traceability of those people who come and knowing what they do inside the store gives us qualitative data that is fundamental ,” explained Pedro.