WEBVTT 00:00:00.640 --> 00:00:01.400 Rahul, welcome. 00:00:01.640 --> 00:00:05.000 Retail media is one of the fastest growing media platforms. 00:00:05.320 --> 00:00:09.160 It's not a new concept, but tell me how the landscape has changed 00:00:09.160 --> 00:00:10.481 and where we're at now. 00:00:10.481 --> 00:00:12.161 Yeah, thanks for having me here, first. 00:00:12.161 --> 00:00:15.601 I think before we understand why retail media is growing, it's 00:00:15.601 --> 00:00:19.241 important to understand what it does for the different constituents. 00:00:19.241 --> 00:00:21.002 So, there's three constituents. 00:00:21.002 --> 00:00:24.002 The first one is the retailers, the second is the brand, and 00:00:24.002 --> 00:00:25.482 then the third is the consumer. 00:00:25.922 --> 00:00:28.682 So if you think about the retailer, the average gross 00:00:28.682 --> 00:00:31.963 margin for their business is 20% to 40%, but if you think about 00:00:31.963 --> 00:00:33.443 advertising, it's 70% to 90%. 00:00:33.763 --> 00:00:36.683 So right off the bat, that's one of the reasons why retail media 00:00:36.683 --> 00:00:39.483 is exploding, because it is the part of their business that's 00:00:39.483 --> 00:00:42.004 going to grow very fast. It's profitable. 00:00:42.364 --> 00:00:45.684 If you think about the brand, you get the highest intent and 00:00:45.684 --> 00:00:48.404 engagement because it's lower funnel advertising. 00:00:48.724 --> 00:00:51.725 So, all of a sudden, you get engagements that are 100% higher 00:00:51.725 --> 00:00:53.365 than what you would normally get. 00:00:53.925 --> 00:00:56.565 And, if you're the consumer, you're getting targeted, 00:00:56.565 --> 00:00:57.365 relevant content. 00:00:57.685 --> 00:00:59.645 So now, again, it's more relevant to you, it's more 00:00:59.645 --> 00:01:01.286 applicable to you, you tend to engage more. 00:01:01.286 --> 00:01:04.766 So when all three sided sort of parties benefit from retail 00:01:04.766 --> 00:01:06.726 media, that's why it's exploding. 00:01:07.966 --> 00:01:10.127 The second thing then is: So where is it going? 00:01:10.167 --> 00:01:13.207 And you know, a lot of times when things are exploding, is it 00:01:13.207 --> 00:01:14.847 like a flash in the pan strategy? 00:01:15.327 --> 00:01:16.887 And in this case, it certainly isn't. 00:01:16.887 --> 00:01:17.847 It's here to stay. 00:01:19.207 --> 00:01:23.528 As I think you know, there's 200, like, retail media networks out there. 00:01:23.528 --> 00:01:25.488 And I feel like there's an announcement every day. 00:01:26.568 --> 00:01:30.289 Most recently was Costco, Chase has announced, United just announced. 00:01:31.329 --> 00:01:33.769 So from the retailer side, it's just going to keep exploding. 00:01:33.769 --> 00:01:37.209 And then from the brand side, there was a survey by Nielsen 00:01:37.209 --> 00:01:40.770 that said 70% of marketers today believe retail media is more 00:01:40.770 --> 00:01:44.770 important to their marketing strategy this year than it was last year. 00:01:45.330 --> 00:01:46.370 So it's here to stay. 00:01:46.370 --> 00:01:47.530 Spend is going to increase. 00:01:47.530 --> 00:01:50.611 I think projections are 100 billion in the next few years, 00:01:50.611 --> 00:01:53.171 and we're excited to be a part of that ecosystem. 00:01:53.331 --> 00:01:57.651 So you've outlined some of the opportunities, but they're also challenges. 00:01:57.651 --> 00:02:00.692 Just outline some of those, if you would. 00:02:00.692 --> 00:02:04.652 I think the opportunity is the challenge when there are 200 retail media networks. 00:02:04.652 --> 00:02:08.092 Imagine you're a brand who has to figure out how to allocate 00:02:08.092 --> 00:02:10.853 the dollar across the 200 retail media networks. 00:02:10.853 --> 00:02:14.533 That's very, very difficult, and it's made even more difficult by 00:02:14.533 --> 00:02:15.853 how they are structured. 00:02:15.853 --> 00:02:18.893 So, if you think about their teams, they're very siloed teams. 00:02:18.893 --> 00:02:21.654 They're siloed data infrastructure, and all of that 00:02:21.654 --> 00:02:24.654 contributes to complexity because it's not clear if the 00:02:24.654 --> 00:02:26.254 spend is actually incremental. 00:02:26.654 --> 00:02:27.894 So, I'll give you an example. 00:02:28.294 --> 00:02:31.055 If you're a big brand, pick your favorite brand: Kenvue. 00:02:31.055 --> 00:02:33.215 They make Band-Aids and Tylenol. 00:02:33.695 --> 00:02:37.055 If they are spending on Amazon, and Amazon, obviously, you got 00:02:37.055 --> 00:02:40.016 the online search, but Amazon also has Prime Video now. 00:02:40.456 --> 00:02:42.216 Well, Amazon is pushing them to go Prime Video. 00:02:42.216 --> 00:02:45.336 Then they're able to measure and say, hey, here's a new to brand customer. 00:02:45.656 --> 00:02:46.336 Well, guess what? 00:02:46.336 --> 00:02:49.496 It's actually not new to brand for Kenvue because that person 00:02:49.496 --> 00:02:50.817 may be shopping on Target. 00:02:51.417 --> 00:02:54.977 So the challenge is that they are 200 different retail media 00:02:54.977 --> 00:02:59.177 networks and there's no singular layer that can connect all of them. 00:02:59.177 --> 00:03:01.818 And that's really what a lot of brands are trying to figure out now. 00:03:01.818 --> 00:03:04.698 You said you were excited to be part of this ecosystem. 00:03:05.018 --> 00:03:06.498 Where does Pacvue fit in? 00:03:06.498 --> 00:03:08.098 How do you solve these challenges? 00:03:08.098 --> 00:03:10.939 Yeah.. So, some of them, and there's a lot to solve. 00:03:11.499 --> 00:03:15.059 So, we are the horizontal layer that connects the retail media 00:03:15.059 --> 00:03:17.099 networks with the different brands. 00:03:17.619 --> 00:03:21.820 So if you think about a brand that has a commerce signal, so 00:03:21.820 --> 00:03:25.900 if you think about like your inventory, your pricing, your 00:03:25.900 --> 00:03:30.381 competitive info, your percentage of products that are returned. 00:03:30.381 --> 00:03:34.101 You need to factor in all of that information to make 00:03:34.101 --> 00:03:35.701 retail media decisions. 00:03:36.301 --> 00:03:37.221 They trust us. 00:03:37.221 --> 00:03:40.222 They send in their first party data, and we're able to use that 00:03:40.222 --> 00:03:43.022 to harmonize and ultimately make decisions on their behalf. 00:03:43.702 --> 00:03:47.582 But then, beyond that, we're able to help them look across all ecosystems. 00:03:47.582 --> 00:03:50.623 So, in a single pane dashboard, you're able to see what's 00:03:50.623 --> 00:03:55.063 happening on Amazon, Walmart, and the hundred other retailers that are on there. 00:03:55.703 --> 00:03:56.823 That's the most important thing. 00:03:56.823 --> 00:03:58.063 Rahul, thank you so much. 00:03:58.063 --> 00:03:59.223 Yeah, I appreciate your time today. 00:03:59.303 --> 00:03:59.623 Thanks.