AdExchanger Talks: Inside the Stack - What's Next in Retail Media with TripleLift CRO Ed Dineshire

In the latest episode of AdExchanger's "Inside the Stack," host Lyndee Johnson engages in a comprehensive discussion with Ed Dineshire, Chief Revenue Officer (CRO) at TripleLift. The conversation delves into the evolving landscape of retail media, exploring key trends, challenges, and future directions that are shaping the industry.

1. Setting the Stage: The Current Retail Media Landscape

Lyndee Johnson opens the discussion by highlighting the significant expansion and experimentation within retail media. She prompts Ed to share his observations on what stands out in the current landscape.

Ed Dineshire emphasizes the burgeoning scale of retail media, predicting it will soon become the "default currency" in online advertising. He notes, “[Retail media] is nearing $200 billion, where I think projections are around 180 billion this year” (02:23). Ed identifies three primary trends:

• Saturation of On-Site Inventory: As on-site advertising space becomes saturated, there's a growing need to balance on-site and off-site advertising efforts.
• Full-Funnel Approaches: Integrating various formats like Connected TV (CTV), online video, display, and search to create a cohesive message sequencing that drives performance across different stages of the customer journey.
• Booming Video and Creative Importance: The rise of video formats, especially on CTV, coupled with the increasing importance of dynamic and animated creative content over static ads.

2. The Critical Role of Creative in Retail Media

Johnson highlights a recent study from the SIM Summit, noting a renewed emphasis on creative quality amidst a heavy focus on data-driven strategies. She asks Ed how TripleLift fits into the surge of retail media spend.

Ed Dineshire responds by outlining TripleLift's long-standing focus on creative innovation. He explains that TripleLift has been pioneering creative components for over 13 years, enabling advertisers to create adaptive, native ad formats that render seamlessly across various publishers and device sizes. “We have 90% plus reach in the US and many other countries… it’s just the start of the journey because there’s a lot to do in video using these components” (08:30).

3. Insights from TripleLift’s Retail Media Study

Johnson inquires about TripleLift’s recently released study on retail media, seeking key highlights without delving too deep into the data.

Ed Dineshire shares several critical findings:

• Ubiquity of Retail Media: “94% of the parametric marketers in the US have used it and 95% plan to do it again in the next 6-12 months” (09:54). This underscores that retail media is a staple, not a fleeting trend.
• Offsite Momentum: “84% are using offsite and the same amount consider offsite working” (09:54), indicating that offsite retail media is gaining traction as brands seek alternatives to saturated on-site inventory.
• Shift from Search Ads: With increasing keyword prices and saturation, brands are exploring high-impact display and video solutions both on-site and off-site to maintain performance and efficiency.
• Creative as a Differentiator: More than 70% of campaign performance is driven by creative quality, highlighting the shift towards prioritizing creative innovation alongside data and targeting.

4. Maximizing Retail Media Spend: Format Mix and Performance

Johnson notes a projected 40% increase in retail media spend and asks Ed for strategies on optimizing this investment.

Ed Dineshire emphasizes the importance of a balanced format mix. He advocates for integrating various advertising formats—search ads, online video, CTV, and display—to create an effective advertising sequence. “It’s all about having the right format mix…the balance between on site and off site” (14:26). Ed suggests that an optimal mix can enhance awareness before driving direct response actions like purchases, thereby increasing overall campaign efficiency and performance.

5. Engaging Consumers with High-Quality Creative

Moving beyond format mix, Johnson probes into strategies for enhancing consumer engagement.

Ed Dineshire discusses the concept of “beautiful creative,” which entails using dynamic and animated elements to boost engagement. He cites survey results where 88% of marketers observed higher engagement with animated over static ads, and 70% saw improved performance with creative technologies like Dynamic Creative Optimization (DCO). “The quality of the creative and retail media offsite advertising is a critical part to achieve their higher API” (17:26). Ed elaborates that beautiful creative involves sophisticated rendering technology and trusted partnerships with publishers to deliver seamless and impactful ad experiences across multiple devices and platforms.

6. The Challenge of Closed Loop Attribution

Johnson brings up the complex issue of closed loop attribution in the context of retail media and CTV, asking Ed for his perspective on its effectiveness.

Ed Dineshire explains that closed loop attribution remains a significant challenge due to varying methodologies across different retail media networks. He states, “there’s no distribution that works with everyone at the same time” (20:59). While efforts like Clean Rooms and advancements in AI are paving the way for more streamlined attribution processes, Ed acknowledges that a universal standard is still lacking. He envisions future solutions that leverage AI to simplify workflows and provide clearer insights into both online and in-store performance, enabling brands to better understand the incremental impact of their campaigns.

7. Looking Ahead: The Future of Retail Media

As the conversation winds down, Johnson asks Ed to share his vision for the future of retail media beyond data clean rooms and AI.

Ed Dineshire outlines three key areas of excitement:

• AI-Driven Creative Insights: AI will enable the generation of multiple creative variations and programmatically determine which versions resonate best with different audiences, effectively turning A/B testing into a more dynamic and scalable process.
• Dynamic Video Formats: Leveraging retail components to create more dynamic and interactive video ads, enhancing the overall user experience and engagement rates.
• Omnichannel Integration: Simplifying and automating the integration of insights across various channels, making it easier for brands to access and utilize data without extensive manual analysis. “Omnichannel will really be here within the next year” (25:01).

8. Conclusion

The episode concludes with Johnson expressing enthusiasm for TripleLift’s innovative approaches and their role in advancing retail media. Ed underscores TripleLift’s unique position in enabling high-quality, scalable creative solutions that enhance both publisher and advertiser outcomes.

Quote Summary:

• Ed Dineshire (02:23): “Retail media targeting and metrics will just become a default definition of online advertising.”
• Ed Dineshire (08:30): “We have 90% plus reach in the US and many other countries… it’s just the start of the journey because there’s a lot to do in video using these components.”
• Ed Dineshire (09:54): “94% of the parametric marketers in the US have used it and 95% plan to do it again in the next 6-12 months.”
• Ed Dineshire (14:26): “It’s all about having the right format mix…the balance between on site and off site.”
• Ed Dineshire (17:26): “The quality of the creative and retail media offsite advertising is a critical part to achieve their higher API.”
• Ed Dineshire (20:59): “There’s no distribution that works with everyone at the same time.”
• Ed Dineshire (25:01): “Omnichannel will really be here within the next year.”

Final Thoughts

This episode of "Inside the Stack" provides valuable insights into the dynamic and rapidly evolving world of retail media. Ed Dineshire of TripleLift shares his expertise on the importance of creative innovation, the challenges of attribution, and the promising future driven by AI and omnichannel strategies. Brands, advertisers, and agencies looking to navigate the complexities of retail media will find this discussion both informative and actionable.