MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: The Surging Importance Of Retail Media Networks
Release Date: January 29, 2025
Host: Benjamin Shapiro
Guest: Jared Luskin, Head of Partnerships at Bridge

Introduction

In this episode of the MarTech Podcast, host Benjamin Shapiro delves into the evolving landscape of retail media networks with Jared Luskin, the Head of Partnerships at Bridge. Bridge is an identity resolution platform centered on point-of-sale (POS) transactions for brick-and-mortar retailers and their Consumer Packaged Goods (CPG) partners. The conversation explores the rising significance of retail media networks (RMNs), the unique offerings of Bridge's Ripple network, and the strategic considerations for grocery chains contemplating their own RMNs.

Understanding Bridge and Its Unique Value Proposition

Jared Luskin introduces Bridge as an identity resolution platform that stands out by leveraging POS transaction data. Unlike typical identity resolution platforms, Bridge specializes in identifying non-loyalty shoppers—customers who do not participate in loyalty programs or identify themselves at the point of sale.

Key Points:

• Identity Resolution at POS: Bridge ingests various data feeds from retail partners, using proprietary methods to identify and understand shoppers who are not part of loyalty programs.
• Engagement of Non-Loyalty Shoppers: By identifying these customers, Bridge provides retailers with valuable insights and the ability to engage a broader customer base.

Notable Quote:

“Bridge's identity resolution is based on point of sale transaction data. So we ingest a number of different data feeds from our retail partners and we run our secret sauce on that.”
— Jared Luskin [02:22]

Explaining Regional Media Networks: Music Metaphor

In the "Explain it to Me" segment, Jared uses a music analogy to elucidate the concept of regional media networks. He compares large RMNs like Walmart or Target to big bands like Taylor Swift performing in massive stadiums, reaching vast audiences efficiently. Conversely, regional RMNs are likened to niche bands like Phish playing in smaller venues but still collectively offering substantial reach.

Key Points:

• Scale and Efficiency: Regional RMNs aggregate numerous smaller retailers to match the scale of national networks, allowing marketers to target diverse, yet substantial, audiences.
• Ripple Network: Ripple, Bridge’s RMN, comprises over 44,000 stores and has surpassed the 100 million unique shopper threshold, demonstrating significant reach.

Notable Quote:

“Ripple is a coalition of regional grocers and convenience stores who in aggregate have really similar scale to the Walmarts and the Target roundels of the world.”
— Jared Luskin [04:33]

Decoding Bridge's Website Tagline

In the "Talk Tagline" segment, Benjamin requests Jared to break down Bridge's website copy. Jared explains how Bridge enables retailers to transcend the limitations of loyalty programs by identifying unknown in-store customers, thereby expanding their first-party data. Additionally, Ripple facilitates collaboration between regional retailers and advertisers.

Key Points:

• Beyond Loyalty Programs: Bridge allows retailers to gain insights into shoppers who do not engage with loyalty programs, enhancing data depth and activation capabilities.
• Data and Media Network: Ripple aggregates data across regional retailers, enabling advertisers to effectively target and engage diverse shopper segments.

Notable Quote:

“Bridge can help to identify them. So now as a retailer you get a couple of really big benefits. One, insights and analytics so you can better understand your non loyalty shoppers and then also activation.”
— Jared Luskin [08:38]

Trend or Trash: Are RMNs Essential for Every Grocery Chain?

The "Trend or Trash" segment tackles whether every grocery store chain needs an RMN. Jared asserts that while RMNs are a significant trend for large grocers due to the substantial opportunities they present, it is not suitable—or even detrimental—for smaller regional grocers to establish their own RMNs independently.

Key Points:

• For Large Grocers: RMNs offer high-margin products and collaborative opportunities with manufacturers and CPG partners, making them a valuable asset.
• For Smaller Grocers: Establishing an RMN requires substantial investment in technology and infrastructure, often without achieving the necessary scale to justify the costs. Instead, joining a coalition like Ripple is more advantageous.

Notable Quote:

“For a smaller regional grocer, I would say it's trash.”
— Jared Luskin [12:00]

Benjamin further clarifies that not every grocery chain should have its own RMN, emphasizing the importance of scale and infrastructure, and highlighting Ripple as a solution that mitigates these challenges for smaller players.

Notable Quote:

“You have debunked my politician's answer, and I would say it's trash, trash for every grocer to have their own retail media network.”
— Jared Luskin [13:38]

Conclusion and Key Takeaways

The episode wraps up with Benjamin highlighting the nuanced perspective Jared provided: while RMNs are transformative for large retailers, they are not a one-size-fits-all solution for every grocery chain. Instead, coalitions like Ripple offer a scalable and cost-effective alternative for regional grocers to harness the benefits of retail media without the significant overhead of establishing their own networks.

Final Insights:

• Scalability is Crucial: The effectiveness of an RMN depends largely on its ability to achieve critical mass, which is challenging for individual smaller retailers.
• Collaborative Solutions: Aggregated networks like Ripple present a strategic advantage by pooling resources and data, making RMNs accessible and beneficial for a broader range of retailers.

Notable Closing Quote:

“Bridge can also help to solve for that by again identifying the real person behind that loyalty.”
— Jared Luskin [11:08]

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