It’s a busy day for retail media. Or commerce media?
A few years ago, AdExchanger said Yahoo might be a “dark horse” in retail media. A prescient take as Yahoo continues to build on its media network business this year.
First, what exactly does Yahoo do in retail media? Through its DSP, it helps retailers and brands build and manage their on-site and off-site media operations. Basically, Yahoo provides the necessary technology to stand up that stack. As a publisher themselves, they also offer unique counsel that other adtech players might not be able to provide. Finally, Yahoo can be a data partner for retailers and brands, making it possible for them to monetize and scale their data further through Yahoo’s DSP.
With that in mind, today, Yahoo unveiled new data partnerships with media network players to support its DSP customers. These partnerships are with leading fitness chain Planet Fitness and data network Ripple. The deals give Yahoo access to each partner’s audience data, so Yahoo DSP customers can use that data to better target their campaigns across the open internet. As data privacy regulations ramp up domestically and abroad, third-party data faces increased scrutiny from advertisers and online identity is deprecating. So, first-party data sets become even more valuable for ad-targeting.
Why This Matters:
In teaming up with Planet Fitness’s media division, PF Media, Yahoo DSP gains access to nearly 20 million active gym-goers that can now be targeted across campaigns.
Meanwhile, Bridg’s Rippl, a data and media network that captures first-party data from regional retailers and convenience store chains like Wegmans and Giant Eagle, will give Yahoo DSP advertisers access to over 2,800 pre-built data sets through the Yahoo DSP, and access to more than “70 million deterministic purchasers.” Yahoo DSP users can also activate Rippl data for custom audience segments.
Experts React:
Mike Brunick, Yahoo’s SVP and Head of Commerce Media, highlighted the deals as an example of the broadening media network – not just retail media network – opportunity. “Our partnerships with Planet Fitness and Rippl highlight our leadership in the growing commerce media category,” he said in the company’s press release.
Yahoo also shared that it is strengthening its team by tapping Mike Merna as the Senior Director, Commerce Media Specialist Lead. Mike has built commerce media strategies for retailers like 7-Eleven, Rite Aid, and Dollar General. Clearly, Yahoo is committed to expanding its commerce play and taking on other notable players in this space.
The deals are similar to another Yahoo struck around Cannes with Kroger to bring the company’s first-party purchase data into the Yahoo DSP.
Our Take:
Yahoo’s new partnerships highlight the industry’s transition from “retail media” to the broader concept of “commerce media,” suggesting that “retail media” as a term may soon be outdated. Commerce media enables any brand with first-party data and inventory to engage, and recognizes off-site inventory as a key growth opportunity.
Yahoo’s press release explicitly signals this transition: “The Yahoo DSP strategy goes beyond traditional retail media,” it reads, “embracing a broader approach known as commerce media. This strategy encompasses any brand with access to scalable first-party data.”
DoubleVerify reports that campaigns on retail media networks experience 183% higher engagement. Consequently, advertisers are reallocating funds to the media network/commerce media category. This creates more demand for inventory, allowing more companies to get in the game and launch their own media businesses.
