Retailers are forming new partnerships with Meta and Google in an effort to compete with Amazon in the battle for advertising dollars. These deals include Instacart making YouTube ads shoppable, Shopify expanding its ad program to Canada, and Kroger selling targeted ads to grocery-focused brands. The goal is for retailers to expand their advertising businesses beyond their own e-commerce websites to reach a broader audience and drive sales.
These partnerships help retailers compete with Amazon without needing to heavily invest in creating advertising products. Additionally, as third-party cookies disappear and privacy regulations tighten, Meta and Google’s walled gardens offer a sense of insulation from digital advertising challenges.
Retailers are restructuring their partnerships with platforms to focus more on data and measurements. For example, Kroger is incorporating consumer purchase data into its ads with Meta, while Instacart allows advertisers to target users based on shopping behavior. Shopify is proving that its data can help merchants find new customers on Meta and Google through ad campaigns.
Retailers are also aiming to prove that social ads can boost sales by convincing brands to allocate larger advertising budgets beyond traditional shopper marketing budgets. Kroger, for instance, is promoting meta ads as performance ad formats to drive sales. The shift towards social ads and away from traditional media budgets is evident, with retailers recognizing the importance of driving sales through seamless connections to commerce.
Overall, retailers are leveraging partnerships with Meta and Google to expand their advertising businesses and compete with Amazon’s massive advertising revenue. By targeting ads using shopper data and measuring their effectiveness, retailers are aiming to capture a larger share of the digital advertising market. As these partnerships evolve, retailers are increasingly focused on proving the effectiveness of social ads in driving sales and attracting larger advertising budgets.
Article Source
https://www.businessinsider.com/retailers-bet-on-meta-and-google-to-grow-advertising-revenue-2024-6
