Interview: How MediaMarkt is Growing with Retail Media
When it comes to Retail Media, the conversation often revolves around Amazon, Walmart, or large supermarket chains. That’s not surprising, but there are more retailers reaching the Netherlands with their assortment. A great example is MediaMarkt. MediaMarkt clearly positions itself as an important player in Retail Media.
Marcel Vogels, partner at RetailMedia.One wants to know more about this. Therefore, he asks Deli Bom (Head of Retail Media & Trade Marketing MediaMarkt Benelux) about how MediaMarkt is growing in the Retail Media market.
Can you tell us more about MediaMarkt’s retail media strategy? Is there an integrated and omni-channel approach behind it? And is it solely focused on trading and performance, or will MediaMarkt also offer options for brand communication?
Because MediaMarktSaturn (MMS Group) operates in 11 countries, with over 1000 stores and 365,000 online products, Digital Retail Media is interesting for us to roll out on a large scale.
Within 1.5 years, a team of 25 people has been assembled at the headquarters in Germany. This team is specifically focused on developing and launching digital retail media products. Within the MMS Group, the Netherlands and Belgium were the first countries to offer Sponsored Products (SPA). Additionally, we also provide online display solutions on the MediaMarkt websites.
In the Benelux region, we offer approximately 80 marketing tools that can be utilized, ranging from POS materials, LED screens, in-store TVs, to digital assets such as on- and off-site banners, social media, as well as ATL (Above The Line) assets like tag-ons on TV/Radio and OOH (Out-of-Home) clusters. Personally, I believe that the key strength of MediaMarkt lies in the ability to deploy large-scale omni-channel 360-degree campaigns to fully reach potential customers in their research phase.
Currently, the majority of our efforts are focused on trade marketing, but we are increasingly opening up to agencies, third parties, and non-endemics to offer a broader collaboration across the entire value chain, from performance to consideration to branding.
What retail media products and programs does MediaMarkt currently offer, and what will be offered in the future? And why should brands invest in MediaMarkt over other retailers?
As part of an international movement, we have a clear focus on 4 DRM (Digital Retail Media) products: (1) SPA (Sponsored Product Ads), (2) SBA (Sponsored Brand Ads), (3) A+ Content, and (4) Dashboarding/Data reporting. Additionally, in the Benelux region, “extended reach” (social, display, search & shopping) is already an important addition.
Our current focus is on how we can further offer our existing screens in stores (LED screens indoor & outdoor + in-store TVs at checkout counters and smart bars) through programmatic channels. Our 48 stores in the Netherlands have approximately 12,768 (!) controllable screens. Just step into one of our stores; in addition to the large screens at the checkout counters and service points, we also offer screensavers on laptops, showcased TVs in the TV department, and game screens.
One particularly attractive aspect is the age and composition of our target audience. For example, did you know that among all age groups, young people between 16-20 years give the highest Brand Equity Index score to MediaMarkt? These are the target groups that are increasingly difficult to reach through traditional media! Our gaming proposition is particularly well-suited for this, for example, in the areas of sports, clothing, or food & beverages brands.
Does MediaMarkt directly provide Retail Media products and programs to brands? How does that process typically work? Are they only available to endemic brands or also non-endemic ones?
We collaborate with suppliers, brands, agencies, and third parties in various ways. Naturally, we work directly with the suppliers whose products we sell. Additionally, Criteo sells Sponsored Products to both brands and agencies. We are also working on a Self-Service Platform, and I hope that the product Sponsored Brand Ads will go live soon. Non-endemic partnerships are established directly with the partner by different departments.
Does MediaMarkt work with resellers, platforms, monetization partners, and/or media agencies to sell the Retail Media Inventory?
We work with Criteo for Sponsored Product Ads, we have an agreement with Ocean for some prominent DOOH screens, and we collaborate with companies like RetailMedia.One to offer our screens in the stores (in-store TVs & LED screens).
Does MediaMarkt use a fixed currency or payment method, or does it vary depending on the media product? What kind of feedback or reporting can a brand expect from MediaMarkt?
This varies depending on the media product. Sometimes it is fixed, and other times it is variable. Reporting is often done using automated dashboards and depends on the specific campaign. For larger campaigns, we also conduct “deep dives,” which involve manual evaluations and reporting.
Are there any limitations? Which advertisers or formats are not allowed?
In general, omni-channel presents challenges. It is still difficult to report accurately when someone sees an online banner but makes an offline purchase (which often happens in our case due to the large number of stores). This ROPO (Research Online, Purchase Offline) effect is relevant for MediaMarkt Netherlands, where it applies to about 62% of all purchases.
We are expanding on the non-endemic side, but we also pay attention to relevance, message content, and creativity. For example, we would not display messages with a political agenda or those promoting our direct competitors. Our partner, RetailMedia.One, also ensures this safety by providing insights into upcoming campaigns and creatives.
In your personal vision, how do you think Retail Media will develop in the Netherlands in the next 3 to 5 years and why?
It is likely that more retailers from various industries will enter the Retail Media landscape. This is good for diversifying the offerings, but it also makes the retail media landscape more complex. Will everyone speak the same language? How will the procurement process work? How can reliable deduplication be ensured? I’m also curious to see how retailers will adapt to the cookieless future and if they can turn it into an opportunity.
If you could give advice or provide something to the Dutch Retail Media Ecosystem, what would it be?
Keep testing! Each retailer is a new channel with new opportunities. Additionally, I strongly advocate for standardization among all parties working in this industry. This could involve establishing consistent reach calculations for in-store screens (DOTS), choosing a specific attribution model, using unified terminology and definitions (ROAS, ACoS, TACoS, etc.), and reporting based on the same KPIs. We need to make it as simple and comparable as possible for everyone. And having a clear definition of Retail Media would be nice too 😉