Rahul, welcome.
Retail media is one of the fastest growing media platforms.
It's not a new concept, but tell me how the landscape has changed
and where we're at now.
Yeah, thanks for having me here, first.
I think before we understand why retail media is growing, it's
important to understand what it does for the different constituents.
So, there's three constituents.
The first one is the retailers, the second is the brand, and
then the third is the consumer.
So if you think about the retailer, the average gross
margin for their business is 20% to 40%, but if you think about
advertising, it's 70% to 90%.
So right off the bat, that's one of the reasons why retail media
is exploding, because it is the part of their business that's
going to grow very fast. It's profitable.
If you think about the brand, you get the highest intent and
engagement because it's lower funnel advertising.
So, all of a sudden, you get engagements that are 100% higher
than what you would normally get.
And, if you're the consumer, you're getting targeted,
relevant content.
So now, again, it's more relevant to you, it's more
applicable to you, you tend to engage more.
So when all three sided sort of parties benefit from retail
media, that's why it's exploding.
The second thing then is: So where is it going?
And you know, a lot of times when things are exploding, is it
like a flash in the pan strategy?
And in this case, it certainly isn't.
It's here to stay.
As I think you know, there's 200, like, retail media networks out there.
And I feel like there's an announcement every day.
Most recently was Costco, Chase has announced, United just announced.
So from the retailer side, it's just going to keep exploding.
And then from the brand side, there was a survey by Nielsen
that said 70% of marketers today believe retail media is more
important to their marketing strategy this year than it was last year.
So it's here to stay.
Spend is going to increase.
I think projections are 100 billion in the next few years,
and we're excited to be a part of that ecosystem.
So you've outlined some of the opportunities, but they're also challenges.
Just outline some of those, if you would.
I think the opportunity is the challenge when there are 200 retail media networks.
Imagine you're a brand who has to figure out how to allocate
the dollar across the 200 retail media networks.
That's very, very difficult, and it's made even more difficult by
how they are structured.
So, if you think about their teams, they're very siloed teams.
They're siloed data infrastructure, and all of that
contributes to complexity because it's not clear if the
spend is actually incremental.
So, I'll give you an example.
If you're a big brand, pick your favorite brand: Kenvue.
They make Band-Aids and Tylenol.
If they are spending on Amazon, and Amazon, obviously, you got
the online search, but Amazon also has Prime Video now.
Well, Amazon is pushing them to go Prime Video.
Then they're able to measure and say, hey, here's a new to brand customer.
Well, guess what?
It's actually not new to brand for Kenvue because that person
may be shopping on Target.
So the challenge is that they are 200 different retail media
networks and there's no singular layer that can connect all of them.
And that's really what a lot of brands are trying to figure out now.
You said you were excited to be part of this ecosystem.
Where does Pacvue fit in?
How do you solve these challenges?
Yeah.. So, some of them, and there's a lot to solve.
So, we are the horizontal layer that connects the retail media
networks with the different brands.
So if you think about a brand that has a commerce signal, so
if you think about like your inventory, your pricing, your
competitive info, your percentage of products that are returned.
You need to factor in all of that information to make
retail media decisions.
They trust us.
They send in their first party data, and we're able to use that
to harmonize and ultimately make decisions on their behalf.
But then, beyond that, we're able to help them look across all ecosystems.
So, in a single pane dashboard, you're able to see what's
happening on Amazon, Walmart, and the hundred other retailers that are on there.
That's the most important thing.
Rahul, thank you so much.
Yeah, I appreciate your time today.
Thanks.