What's Happening?
Ocado, a prominent online retailer, is enhancing its offsite media strategy to increase advertising reach for brands. This strategy is centered around first-party, purchase-based audiences that are activated across the open internet. Since 2023, Ocado has partnered
with The Trade Desk, allowing advertisers to use Ocado's audience data to target and optimize across connected TV (CTV) and digital out-of-home (DOOH) platforms. This approach includes closed-loop attribution directly linked to grocery outcomes. A key aspect of Ocado's strategy is its collaboration with publishers and traditional media companies to leverage customer data with mainstream media outputs. By combining real-time purchase signals with premium publishers' audience data, Ocado creates high-intent segments that can be activated on media publishers' sites and apps. This initiative has shown significant results, with companies like Kimberly-Clark achieving a five-fold return on ad spend (ROAS) for campaigns.
Why It's Important?
Ocado's offsite media strategy is significant as it addresses the challenge of media fragmentation by integrating its data into tools and environments that buyers already use. This approach allows for more effective targeting and optimization of advertising campaigns, potentially leading to higher sales and return on investment for brands. The strategy also highlights the growing importance of data-driven advertising in the retail sector, as companies seek to maximize the impact of their marketing efforts. By collaborating with established media companies and leveraging first-party data, Ocado is positioning itself as a leader in the evolving landscape of retail media. This could influence other retailers to adopt similar strategies, further transforming how advertising is conducted in the industry.
What's Next?
Ocado's continued focus on expanding its offsite media strategy suggests that the company will likely pursue additional partnerships with media companies and advertisers to further enhance its reach and effectiveness. As the retail media sector evolves, Ocado may also explore new technologies and platforms to integrate into its strategy, ensuring it remains at the forefront of data-driven advertising. The success of this approach could prompt other retailers to adopt similar strategies, potentially leading to increased competition and innovation in the retail media space.
Beyond the Headlines
The ethical implications of using first-party data for advertising purposes are an important consideration in Ocado's strategy. As data privacy concerns continue to grow, Ocado and other retailers must ensure that their data practices comply with regulations and respect consumer privacy. Additionally, the long-term impact of data-driven advertising on consumer behavior and market dynamics could lead to shifts in how brands allocate their marketing budgets and engage with customers.
