In a market defined by rising costs, shifting consumer sentiment, and unpredictable economics, data collaboration offers a lifeline for retailers looking to build stronger relationships with marketers, to stand out in a crowded field, and to boost their businesses. As consumer touchpoints continue to expand, and consumers continue to demand better, more relevant experiences, retailers and brands are finding greater value in strategic data collaboration.
Why data collaboration matters
Economic headwinds, including global trade tensions and rising operating costs, are already impacting how brands make marketing investments. Many brands are being forced to pause, reassess strategy, and prioritise performance,
In light of these pressures, brand marketers are turning to data collaboration, and prioritising retailers that leverage data collaboration in order to unlock the following:
- Smarter targeting: By deepening their data partnerships with data owners – like retailers – marketers can get a clearer understanding of where and how to engage their target audiences across complicated customer journeys. Retailers can also extend their reach through offsite targeting, leveraging connected TV, social platforms, and more.
- Closed-loop measurement: As budgets come under scrutiny, marketers looking to better connect ad exposures and purchases can collaborate with retailers and their conversion and purchase data, helping better prove attribution and return on investment.
Retail media networks: A data-driven opportunity
Effective data collaboration is key to unlocking one of retailers’ most popular tools: Retail Media Networks, or RMNs. When retailers collaborate their first-party data with brand marketer partners, marketers can deliver more engaging, efficient ad targeting for end customers – a priority in this heated market.
Top Australian retailers have already kicked off retail media networks powered by first-party data from their systems, in collaboration with marketers’ first-party data. When retailers and brands align around this data, marketers benefit from precision and performance that’s hard to match elsewhere.
However, the transition to Retail Media Networks – even for retailers that have already begun data collaboration in some form – isn’t a guaranteed hit. Retailers need to be strategic in their plan of attack, as well as every step of the construction of their media network – from selecting partners to their company’s resources, all the way through to selecting the right responsible partners for collaboration.
How to weather any storm
In today’s challenging retail media environment, Retail Media Networks and data collaboration are emerging as foundational strategies – not just for surviving economic pressures, but for driving long-term growth. While retailers’ focuses may rightfully be on weathering the immediate macroeconomic pressures, brand marketers’ expectations have now shifted to expect the performance that retail media networks can unlock. To remain competitive, retailers should embrace this data-driven wave, and if they haven’t already, build the collaborative foundation that will power their next era of growth.
As retailers and brands face increased demand for efficiency, embracing data partnerships can unlock new avenues for innovation. Whether it’s through more accurate targeting or closed-loop measurement, collaborative data strategies are helping to reshape the retail sector. Looking ahead, the retailers and brands that work collaboratively to harness the full value of their data will be best positioned to thrive in the new era of retail.
Melanie Hoptman is managing director for APAC at LiveRamp.