We sat down with Matteo Schuerch to talk about retail media and how Swiss Retail Media plans to connect brands, shops and consumers intelligently. Through the combination of digital advertising, technology and retail data, Swiss Retail are building an ecosystem more effective than search engine marketing.
Digital marketing entrepreneur. Founder and CEO of CONVERTO and its brand Swiss Retail Media. Responsible for the Digicomp Digital Advertiser Manager program and teacher at various universities and schools. Head of the IAB Switzerland Performance Marketing group.
Digital marketing for the eCommerce sector.
Can you tell us about the new buzz that hit the Swiss Advertising Market around the concept of “Retail Media”?
Yes, of course! First though, Retail Media is not merely a buzz, it is an existing digital business model with an impressive track record - for example in the US, UK, China and in Germany. In Switzerland? Not so much yet.
Retail Media basically is advertising and shopper-marketing in retail and e-commerce environments. Retailers earn money by monetarizing their digital reach as well as their shopper data and by generating additional purchases in their very own shop. On the other hand, brands use e-commerce data for advertising or promote their advertising ads directly in the e-shop environment, where they get to advertise to a very "hot" shopper audience.
In large parts, Retail Media translates tactics and strategies that have been used in brick-and-mortar shops into digital. When a brand uses e-commerce ad placements for advertising their newest offers, you can easily compare that type of advertising with buying a prominent shelf position for your products in the offline retail world. It is a "win-win-win" advertising form for brands, retailers and the user.
At Swiss Retail Media, we want to intelligently connect what belongs together: brands, shops, and the consumer. We do that by combining digital advertising know-how and technology with e-commerce and retail data. The ultimate goal is to build an ecosystem of data and advertising placements that is even much hotter and more effective than search engine marketing.
So, Retail Media is an entirely new way of Digital Advertising?
Our research has shown us, that Retail Media is not new, but it is not truly digital yet. At least not in Switzerland. The digital segment of retail Media is just starting to launch new technologies and building data hubs, that will both significantly improve advertising practices and their effectiveness. Retailers and online shops already collaborate with brands and marketers to push their products and messages to the users. However, they are not doing that at scale right now. We want to help with scaling and automatizing their digital retail media advertising practices.
Can you deep-dive into the win-win situation for all parts involved?
Think of how and why big players like Googles Advertising Solutions grew so fast. Their ads reach out to the user at the exact moment when they are searching for specific products. In other words, Google can reach users when they are already in the middle of a purchase decision process. For the user it has become second nature to use ads in search results pages to get to their products. With Retail Media advertisers can reach users that are even "hotter" because they are closer to completing a purchase. That's win number one.
Why? Because the shoppers are already in the online shop! Retail media ads are placed directly at the digital point of sales.
See, every e-shop visitor is a potential purchaser. As a brand you do not need to search for a potential buyer first. You get them on a silver platter. And on top of that during an extremely relevant moment: namely, when they are already in the mood to shop.
Brands get a hot audience and attention that is "right on the money". Ok. But how do e-shops profit?
Retail Media is especially interesting for online shops that have established a positive image with their shoppers and have lots of direct traffic of returning visitors. Think of how big retail media players like Amazon or Zalando are visited directly by users, so much so, that users search their products directly in the e-shop - without consulting Google first.
E-Shops that have established this kind of trust with the consumer will profit most as they have a lot of direct traffic on their sites. This traffic and their shopper data make them extremely relevant advertising partners for brands.
It is about time for Swiss e-shops to start monetarizing their hard-earned traffic. It is still incredibly expensive and truly hard work to turn new customers into returning customers. With Retail Media e-shops and e-retailers can harvest the fruits of their hard work by building a second income source with advertisements directly in their e-shop and also by monetarizing their valuable "shopper data" and audience insights.
Retailers profit by monetarizing their e-commerce traffic and shopper knowledge. Brands profit by advertising directly in online shops. How does the shopper profit?
In different ways: His interests are being served and anticipated in near real time and with growing intelligence. The user receives highly relevant ads that make his or her shopping experience way more convenient and seamless. And wherever there is competition for his attention, users profit from better offers.
So, Retail Media is still a battle for the shopper's attention? But the new battle arena is the online shop? Will this type of advertising not tire the audience?
Of course, the consumer's attention is always in the center of all things advertising!
At Swiss Retail Media, we believe the e-commerce sphere is the ultimate perfect context for product and brand advertisements. Simply because the probability that the online-shop visitor actually wants to buy a product or service is much higher than within other contexts. The beauty of it is that in a shop or e-commerce context a user expects that we show him ads and offerings. That is why Retail Media ads work so effectively: within an online shop or e-commerce, advertisements are right on the money. Ads in shop-contexts feel natural to the user and have an incredibly high acceptance.
You just launched a new brand called Swiss Retail Media. How is it positioned and what are your USPs?
Swiss Retail Media stands for Digital, Simplicity, and Swissness. We are in the midst of building a Swiss digital retail media ecosystem that facilitates the collaboration of e-shops and brands alike. It will get easier and easier to participate at digital retail media advertising the bigger this ecosystem gets. For now, I think we have the pole position as Swiss Retail Media is exceptionally well connected to shops and premium-brands already. And the retail media race has just begun in Switzerland. Our USP is clearly our proprietary advertising software that is already tailored to retail and brand advertising needs as well as our interdisciplinary team of advertising and e-commerce experts.
How can brands or retailers work with you?
We help shops building an attractive placement inventory and take over ad-operations. Premium brands can book their ad campaigns at one touchpoint. Our advertising consultants help them optimizing their ad results, and they will also simplify the production of ad creatives significantly. Both at really simple and very competitive pricing models.
Just reach out to us and let the magic happen!
Further information: https://swiss-retail-media.ch
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