We are witnessing the rise of retail media networks designed by major retailers to deliver a targeted, personalized experience to shoppers. Walmart, CVS, Amazon and others are putting resources behind this trend, and marketers will need to sharpen their approach by addressing multiple critical factors, including their relevance, keyword targeting, negative targeting, and the shopper’s buying journey to be successful.
As more business shifts to e-commerce marketplaces for consumer brands, understanding the cost serve each marketplace is critical. What’s more, knowing how to drive efficiencies in each of these areas is key to maintaining profitability of this fast-growing channel.
If you’re a consumer brand, you’re likely finding yourself with a surprising amount of your business having shifted online as a result of the COVID-19 pandemic. Consumers have never bought so many things online. From groceries to beauty products to Peloton bikes, it seems consumers have gone ecommerce-mad.
When measuring eCommerce success, there are three better input metrics than market share that should be utilized. A representative of a large global beauty brand recently said to me, “Our strategic goal for Amazon this year is to gain our fair market share.” I’ve written previously about how while market share might work to measure your brick-and-mortar business, it’s a deeply flawed metric on e-commerce sites such as Amazon, Target and Walmart.
Both in my consulting practice and during my ten years at Amazon managing categories, I have repeatedly witnessed the remarkable rise of a certain type of brands to large, competitive players in their categories. The Grocery Manufacturer’s Association and BCG released a report that stated, “…brick-and-mortar market share and shelf-space prominence do not translate into digital sales, and nimble new competitors with disruptive strategies…stake out leadership positions and are then hard to dislodge.”