By Kristina Monllos • March 7, 2024 • 4 min learn •
Ivy Liu
No subject the continuing growth of retail media networks this year — even gas subject chain Wawa lately unveiled a brand recent retail media offering, Goose Media Network, last month — House Depot isn’t unnerved about increased opponents for retail media advert dollars given its specialty retailer subject.
That’s to now not sing that House Depot is resting on its laurels and ready for advertisers to exercise no subject their offering — the retailer is persevering with to substitute its offering, below Retail Media+ and capabilities for advertisers to prevent competitive, needless to command — nonetheless that being a specialty retailer in most cases is a competitive edge. Some marketers luxuriate in had predicament deciding the build to exercise in the case of retail media and the continuing fragmentation with an increasing selection of retail media networks entering the marketplace hasn’t made that more straightforward.
“We’re specialty nonetheless we’re now not itsy-bitsy, we luxuriate in massive quantity,” said Melanie Babcock, vp of Retail Media+ and monetization at The House Depot, at the side of that the retailer has greater than 2,300 stores all the scheme in which by means of North The united states, making it easy to pitch advertisers on scale as well to specialty.
The House Depot furthermore believes its first-event files pitch, which is less reliant on demographic or psychographic files and extra in the forms of house tasks its potentialities are doing, helps it stand out to advertisers, both endemic and non-endemic.
“We are extra in the forms of tasks possibilities are you’ll perhaps perhaps presumably be doing,” said Babcock. “Suppose you and I are both redoing our kitchen. We are capable of be living in a quantity of [types of homes.] You would possibly maybe well perhaps presumably presumably be living in a townhome. I will doubtless be living in a house. We are capable of be so a quantity of in so many other programs that I luxuriate in frail media psychographics and demographics don’t apply due to we’re in this challenge.”
As House Depot looks to branch out beyond the endemic advertisers and strengthen its offering to woo non-endemic advertisers, the retailer has been sorting out to gape how its files would be gorgeous to those non-endemic advertisers.
“We predict that the audiences that we luxuriate in are treasured, particularly to very particular segments love monetary products and companies due to even as you’re for your private house, you want insure it and most of them luxuriate in a car of some form,” said Babcock. “So there’s a spread of adjacency categories that would be in a brand recent mover, as an illustration. Or they’d be in this professional or itsy-bitsy industry owner. Maybe they’ve a undeniable offering for that itsy-bitsy industry owner love mobile phone protection or something love that.”
Babcock continued: “That’s in actuality crucial for a spread of specialty retailers is to take into story what are those adjacency categories that is also leveraged as a bit of your retail media network. And that’s how we’re leaning in.”
That system is smart to advert investors and researchers who gaze House Depot as a solid player within the ever-expanding retail media landscape.
“House Depot’s subject as a specialty retailer advantages its media proposition as an RMN,” said Harry Inglis, head of activation, Media by Mom, in an email. “House Depot is effectively positioned to cater to potentialities’ a quantity of existence phases, whether or now not transferring house, running a itsy-bitsy industry, or redecorating.”
Inglis continued: “Movers are participants doubtless in want of insurance, mortgage, IP connectivity, or out there for mammoth trace objects. If there’s a functionality to section these audiences by ‘pre-, in the course of and post’ switch, this would possibly maybe maybe perhaps perhaps presumably enhance the nice looks of a House Depot take a look at aquire, even alongside present retail media network investments.”
It helps that House Depot became “first mover,” eminent Jennifer Kohl, chief media offer at VML, as the retailer rolled out its offering in 2019 long sooner than the glut of retail media networks over the last few years.
“The challenges in retail media appropriate now are fragmentation, so there’s one billion a quantity of retailers and it’s in actuality great to bustle 50 a quantity of advert campaigns and no person has the a similar size metrics or stats that they’re providing you with,” said Luke Stillman, svp of Global Market Intelligence at MAGNA. “So it’s in actuality great to review one retailer to yet any other, so even as you’re competing, you’re competing on scale or specificity. And love House Depot has a tiny bit of bit of both of those things.”
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