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How In-Store Retail Media is Transforming with Personalized Digital Signage · The Retail Podcast

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  Nobody wants to walk into their their grocery store and it to be
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  NASCAR. No one's looking for ads
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  everywhere all the time. Yeah, use the screens
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  intelligently to deliver messages that are maybe
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  relevant. Hello and welcome back to the
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  Retail podcast Live from I was going to say shop talk live from
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  grocery shop. I'm here with Harles Fischman,
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  VP and general Manager of encounter RRD underneath the
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  umbrella of RRD. So, Hans, for those who don't
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  know what you guys do, why don't you tell us what you do?
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  We work with both retailers and advertisers and what we try to
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  do is for a retailer, we're trying to take the idea of
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  digital signage to the next level for their customers.
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  How do you use digital signage to personalise the shopping
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  experience to put more items into carts and baskets and and
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  how do you to create a more bespoke and modern experience
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  for an advertiser who wants to be in the store?
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  We managed to solve actually something very similar, which is
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  that we're putting more items into baskets and carts.
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  We're trying to personalise and customise the targeting of a
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  message that goes to a consumer as they go through their through
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  their shopping journey and more importantly, providing back the
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  relevant data that's necessary for them to make smarter
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  marketing decisions. You must meet a lot of
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  customers. I mean, there's these, these are
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  sort of some of my hard getting go to question.
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  You must meet a lot of customers, yes.
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  What's the number one problem that they're trying to solve
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  when they come to talk to you? Well, I think for a customer,
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  and let's let's define this, there's 2 customers, there's
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  retailers, and then there's advertisers, brands.
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  For a retailer, they have a challenge with margin for linear
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  foot. And so by bringing in
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  advertising, by selling more items for linear foot, by by
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  activating data in a way that they've never been able to
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  actually create a value for it, we're actually allowing them to
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  think of their store in a different fashion in terms of a
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  blended margin. And for the advertiser, we're
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  helping them deliver messages directly to consumers when
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  they're actively making a purchase decision.
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  If I'm in a grocery store, for example, I'm there to buy
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  something. So if you can influence that
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  purchase decision in real time, you actually have created an
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  entirely new marketing channel, an opportunity for attribution
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  and conversion. What are some of the outcomes
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  that you're creating that? So you've obviously mentioned
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  that you've got two types of customers, the agency and then
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  the the the retailer. What's the main outcome then
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  that you're producing for either or?
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  Obviously you're trying to convert.
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  For, for a retailer, the number one thing that we create is
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  revenue and it's now revenue through a couple of different
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  revenue streams for the advertiser.
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  We're providing a different level of data that's ever been
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  possible before in a real store. And when we look at the growth
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  of retail media networks and, and the growth really is
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  tremendous, but it's based on a couple of pieces of information.
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  It's based on being able to target effectively, it's being
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  able to have attribution and attract conversion.
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  And as you do that in the digital world, which is actually
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  very straightforward and easy. The challenge is, is that if
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  you're a retailer, most of your traffic is in the physical
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  world, it's not digital. And if you're an advertiser,
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  most of the sales are happening in the physical world, not
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  digitally. As big as e-commerce is, it's
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  still only 20% of retail and that's globally.
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  So as we look towards what are the possibilities for an
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  advertiser, we are allowing for and delivered to them the data
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  necessary to make smarter marketing decisions.
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  And for a retailer, what we're providing is the ability to
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  activate and to create value for arts of their store that
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  haven't, they haven't really been able to figure out how to
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  make that U on par with what they're able to do digitally.
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  So would you, would you say that you're earlier on you mentioned
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  that you're an advertising company that's come into tech,
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  correct, right. So therefore you understand that
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  world better, right? Is that right?
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  That's correct. So we are, we are an advertising
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  company that does tech and we've been like this now for decades.
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  That's what we do, which is that we find technologies and we
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  adapt them for purposes of delivering marketing messages.
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  Over time, as digital has come to the forefront, we've of
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  course adopted digital technology to allow us to target
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  more effectively. And we do that in a variety of
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  ways depending on what the medium is.
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  If it's digital advertising, display, we do that.
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  If it's CTV, we do that. Depending on which each one has
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  had their advantages and mechanisms for this, for
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  purposes of growing this out, where what we've built is the
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  ability to take the digital methodologies that we've
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  developed, the learning and iteration that we've done over
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  decades and we're now applying it physically in the real world.
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  So we're bringing the capabilities that you would do
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  digitally to bear inside of a store.
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  And that's what I mean by being an advertising company that does
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  technology. If I were a technology company
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  and I'm trying to say, oh, here's my crazy widget, First
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  off, odds are it isn't born over the course of decades of
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  learning and iteration. You don't have the relationships
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  with the brands that you need that are necessary to actually
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  build the business around that. And more importantly, you're not
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  providing solutions for retailers.
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  In other words, you have a solution in search of a problem.
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  We have a problem that we have learned how to solve through
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  literally years and years of working from the advertising
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  perspective and bringing that into retail environments.
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  Perfect, final two questions. Where do I start and where is it
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  going? So you start by calling me.
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  So we, we, we, where we start is actually by building up the
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  supply. And what does that mean?
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  It means by working with retailers to be able to build a
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  larger scale to the business. So you're agnostic to the
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  retailer then, in terms of what? So we are agnostic to both
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  retailers and to brands. Our our goal is to actually
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  facilitate business between them by providing solutions for both
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  sides. Got you.
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  OK. So this if I've got a retail
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  media network already, you're providing the content for me.
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  We I can. And the medium.
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  I can, we can do two things. We can we can work with you as a
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  retail media network. Let's say you're a large
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  retailer today and you have a retail media network, an RMN.
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  We can work with you to figure out how to deploy these into
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  your stores and incorporate them in.
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  So you can now have increased scale.
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  So in other words, you have demand that you've generated
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  digitally. We can help you bring that into
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  store and we do that by the programmatic capabilities that
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  we can bring to bear by tying this into a back end system that
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  is fully modern and designed specifically to deliver digital
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  advertising from a demand perspective.
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  We can actually help you with either bespoke pieces where
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  you're doing custom installations in the store very
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  similar to like an end cap or something along those lines.
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  Today. We're also working with you to
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  help encourage the retailers to adopt and that comes in the form
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  of your media spend goes to the retailer to a much higher degree
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  than they do through other channels than you typically see
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  through programmatic channels. That allows for the retailer to
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  recognise a return on their investment that much more
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  quickly. This creates a healthy cycle, a
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  circle of virtual, a cycle of virtue, if you will, That a
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  virtuous circle. That's what I was looking for.
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  Thank you. To create a virtuous circle.
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  That virtuous circle then actually encourages retailers to
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  adopt more technology because they're making more money from
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  them more effectively. So to answer your question,
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  where do we begin? The proverbial chicken or egg?
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  Yeah, We work today with existing networks and our goal
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  is to actually maximise the opportunity with them.
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  We then work in conjunction with several large global technology
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  providers and not as a vendor relationship, but as a partner
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  relationship to build an ecosystem where all of these
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  different companies can now succeed and help bring the
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  capability into retailers and large retailers, small
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  retailers. And then so where did you see
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  the future? What, what?
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  What is the future of this? Industry, the the future of this
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  industry is it starts where it began, which is how do we look
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  at the retail experience? We as consumers, not not me as a
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  technologist or you. You're hosting this podcast.
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  Yeah. How do we as individuals that go
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  into a store, how can I create an experience that is more
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  bespoke, more personalised and customised, very similar to what
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  I might get off of my mobile device, right.
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  When we get our mobile device, it's universal.
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  It applies to everybody, but over days and weeks it starts
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  personalising to how I want to see information.
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  If I'm a retailer, how do I bring that capability to bear
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  inside my store? So I think that over time what
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  we're looking at is the the increase of more individual,
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  smaller discrete displays that deliver personalised recommended
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  messaging based on behaviours I may have taken or based on
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  perhaps a loyalty programme or other some other form of first
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  party data that allows for us to develop systems to the target
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  messaging that helps drive consumer behaviour.
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  Most importantly, when I say drive influence, it's really
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  about how do you influence a consumer to take action?
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  Yeah, that's beneficial to them. And in many respects in digital
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  advertising, it's overload, right.
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  Nobody wants to walk into their their grocery store and it to be
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  NASCAR. No one's looking for ads
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  everywhere all the time. Yeah.
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  Use the screens intelligently to deliver messages that are maybe
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  relevant for maybe it's Peach season.
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  Peaches are now in season. So here's a delicious cobbler
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  recipe. By the way, for cobbler, you
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  also need butter and you need milk and you need Graham
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  crackers and you need these things.
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  So that creates the opportunities to deliver
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  targeted marketing messages as we start thinking about the
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  context of the shopper in that environment and how do we
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  deliver that message, That's what Encounter is.
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  It's the platform that enables it.
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  I myself am not a marketer. Yeah, I'm a product person.
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  As a product person, I've listened to marketers, but I've
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  also listened to retailers. And we believe that we've
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  figured out the solution that meets both of their criteria,
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  their needs and their requirements, but at the same
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  time allows for us as consumers. And it's always starts with the
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  consumer, right? It's like, yes, brands want
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  everything and retailers want everything, but if you annoy
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  your customer, you got nothing. Yeah, So you have to start
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  there. So to create that experience and
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  how do you do this? How can we be privacy safe?
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  How can we put privacy at the forefront of artists of how we
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  look at this? How do we then tie the the
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  messaging and making sure that I am delivering that message for
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  Peach cobbler when it's time? How do I allow the local manager
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  to who knows their customers and greets them by name as they walk
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  in the store? How do you how do you create
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  that environment? How do we create an environment,
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  a technology platform that allows for ADA compliance or for
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  people that have you know, that are differently abled?
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  How do we how can we support them better using the exact same
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  technology? When we look at this in its
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  holistic platform, the same technology that allows me to
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  deliver a targeted ad for somebody for Peach cobbler can
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  also identify somebody that has especially different needs.
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  And by making this work at an enterprise grade, that's what I
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  think the future looks like. Miss Brilliant Hans, thank you
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  so much. Thank you.