Exploring Retail Media in Ahold Delhaize’s European Markets

Retail Media: A Crucial Element in Ahold Delhaize’s European Strategy

Retail media has long been a significant aspect of the retail industry, with its early forms including advertisements printed on the back of grocery receipts. In today’s world, where consumers are bombarded with ads both online and offline, retail media has become an increasingly effective way to enhance customer experiences and generate additional revenue. We spoke with Maurits Priem, Head of Monetization for Ahold Delhaize Europe & Indonesia, to delve deeper into the concept of retail media and Ahold Delhaize’s innovative approach to its future.

Understanding Retail Media and Its Customer Benefits

Retail media refers to the advertising space, data assets, and in-store opportunities that a retailer or marketplace owns, which are then offered to brands for advertising campaigns. According to IAB Europe, this encompasses all the touchpoints a retailer can use for advertising purposes.

Maurits emphasizes the dual benefits of retail media for Ahold Delhaize’s European operations: enhancing customer experiences and generating additional revenue streams. “A robust retail media program allows us to deliver more relevant advertisements to customers on our online platforms, enhancing their shopping experience,” he explains. For instance, a customer interested in vegetarian meals will see more relevant offers through retail media partnerships, personalizing their shopping journey.

Local Focus with a Unified Strategy

Retail media has traditionally been managed locally within Ahold Delhaize’s European brands, each at varying levels of maturity and offering different products. This year, Ahold Delhaize introduced Ad Retail Media, a specialized organization focusing on “non-endemic” advertising—ads for products not sold through their brands, such as green energy offers.

This approach positions Ahold Delhaize at the forefront of retail media in the Benelux region. The company’s extensive reach across various customer touchpoints allows for diverse advertising opportunities, including onsite ads (web and app banners), in-store ads (digital screens, hand scanners, and promo teams), and offsite ads (media channels of large publishers).

Anticipating Continuous Growth

Bain & Company forecasts that the global retail media market will reach $140 billion by 2026, with Europe accounting for up to €25 billion and an annual growth rate of 25%. Maurits sees significant expansion potential for retail media, highlighting the need for the industry to scale its reach, data, and technology to accommodate this growth. “The professionalization of supply and demand, along with increased standardization, will unlock new revenue streams,” he notes. Offsite advertising through large publishers and social media networks will continue to evolve as well.

Source link