Waitrose has revealed that it is now working with retail media technology company CitrusAd to roll out “relevant, targeted advertising” across its online store.
Suppliers can now enhance their online presence on Waitrose.com through sponsored search and category product ads, as well as sponsored offers and checkout ad campaigns.
The move replaces static advertising – where all customers were served the same adverts – with a targeted model, in which shoppers are given updates from brands based on the product searches or areas they browse on the supermarket’s website.
Waitrose noted that the new system also gives suppliers the flexibility to change or boost their campaigns rather than being tied into long-term fixed tenancy slots, allowing them to take advantage of events and seasonal changes. Meanwhile, brands can access performance-based metrics and reporting to measure the impact of their adverts and return on ad spend (ROAS) down to the individual product level and by search term.
Phil Eacott, Retail Media Sales Lead for Waitrose, commented: “Advertising on retailers’ websites is nothing new, but it traditionally took a blanket approach, meaning customers saw promotions that just weren’t of interest.
“Now, we’re able to target ads much more effectively so customers get much more relevant offers, and brands get even better engagement.”
Alban Villani, Regional CEO of Europe, Middle East and Africa at CitrusAd, added: “Relevancy is key when it comes to customer experience. Since working with Waitrose to offer targeted adverts to customers, ads on their website have begun well outperforming industry benchmarks.
“What’s more, the brands they work with get real-time data on their campaigns, and can easily update their campaigns to help stay relevant.”
The move to more relevant advertising is the most recent result of the John Lewis Partnership’s investment in data and loyalty, which includes its tie-up with dunnhumby back in April.
NAM Implications:
- Gradually, or even faster, the RM revenue will help fund the easing of on-shelf prices…
- …if necessary, in making Waitrose more competitive.
- All depends upon rivals’ ability and willingness to retaliate.
- Either way, the mults are entering a totally new ballpark…
- …where first-party data becomes more valuable than shopper purchases.
- And flexibility is king…
