The CPG Guys Podcast Summary

Episode: Live from Groceryshop with Ahold Delhaize USA's Melissa Emerich
Release Date: November 20, 2024
Hosts: Peter V.S. Bond & Sriraja Gopalan
Guest: Melissa Emmerich, Ahold Delhaize USA

Introduction

In this live episode from Groceryshop 2024, hosts Peter V.S. Bond and Sriraja Gopalan welcome Melissa Emmerich from Ahold Delhaize USA. The conversation delves into the evolving landscape of retail media, focusing on measurement frameworks, standardization, transparency, and the integration of online and in-store strategies to engage modern consumers effectively.

Transformations in Retail Media

Primary Objectives of Ahold Delhaize's Retail Media

Peter initiates the discussion by addressing the rapid transformations in the retail media space and asks Melissa about Ahold Delhaize's primary objectives.

Peter V.S. Bond [03:09]: "What are the primary objectives that Ahold Delhaize's retail media has?"

Melissa responds by highlighting the company's efforts to bring retail media practices in-house, expanding capabilities beyond traditional partnerships.

Melissa Emmerich [04:39]: "We've really taken a hard look at our retail media practice and have grown and expanded it. We've brought that practice in-house and added additional staff to augment the business."

Measurement Frameworks and ROI vs. ROAS

Consistency in Measurement Practices

Sriraja raises concerns about the lack of standardized measurement frameworks across the retail media industry, emphasizing the need for brands to accurately measure ROI.

Sriraja Gopalan [04:39]: "What can a brand that's working with you expect in terms of measurement that actually can measure the ROI of the investments they make?"

Melissa underscores Ahold Delhaize's commitment to consistent measurement practices, providing detailed reports within six weeks post-campaign.

Melissa Emmerich [05:26]: "We deliver a final metrics readout report within six weeks of every campaign, clearly outlining how the measurement was arrived at. There's no surprises with us and there's consistency."

ROI vs. ROAS: Balancing Metrics with Business Goals

The conversation shifts to the distinction between Return on Investment (ROI) and Return on Advertising Spend (ROAS). Sriraja points out the traditional focus on ROAS and the emerging emphasis on broader brand goals.

Sriraja Gopalan [06:13]: "Can a brand actually determine sitting with you guys jointly constitutes an ROI, or is it always ROAS?"

Melissa explains that while ROAS remains a key metric, Ahold Delhaize emphasizes conversations around overall business impact and product sales.

Melissa Emmerich [06:13]: "We look at ROAS consistently, but our end goal is to drive product sales. We engage in conversations about what's happening with the overall business to ensure our efforts align with driving sales."

Standardization and Transparency in Measurement

Embracing IAB Standards

Sriraja highlights the industry's fragmented measurement frameworks and inquires about Ahold Delhaize's stance on standardization.

Sriraja Gopalan [07:00]: "How do you drive confidence that investing with ad media is the right thing to do for them?"

Melissa affirms Ahold Delhaize's active participation in the Interactive Advertising Bureau (IAB) to foster standardization.

Melissa Emmerich [09:35]: "We're active participants in the IAB, led by our team member Margaret Kittredge. Standardization is critical for ensuring apples-to-apples comparisons for our suppliers."

Transparency as a Pillar of Trust

Peter probes into the concept of transparency in measurement, emphasizing the importance of clear communication with brand managers.

Peter V.S. Bond [10:08]: "What does transparency mean to you?"

Melissa defines transparency as clarity in what is being measured and how metrics are calculated, ensuring brands have confidence in their investments.

Melissa Emmerich [10:17]: "Transparency means being incredibly clear about what is being measured and how. We provide detailed metrics readouts to build trust with our partners."

Creative Strategies and Consistent Messaging

Aligning Creative Elements with Brand Goals

Sriraja questions the significance of creative quality in retail media campaigns, especially from a retail perspective focused on category growth.

Sriraja Gopalan [14:16]: "Is it equally important that when retail media is put out like a banner ad has to be the best creative that exists on planet Earth?"

Melissa acknowledges the critical role of creative elements in influencing customer behavior and driving category growth.

Melissa Emmerich [14:51]: "Creative plays an incredibly important role. We're focused on developing new products that enhance the creative experience and ensure consistency across all touchpoints."

Consistency Across Omnichannel Platforms

The hosts stress the importance of maintaining consistent messaging across both online and in-store channels to cater to omnichannel shoppers.

Sriraja Gopalan [19:25]: "The most key takeaway word is consistency. The messaging cannot deviate across channels."

Melissa elaborates on integrating creative strategies across digital and physical touchpoints to reinforce brand messages effectively.

Melissa Emmerich [20:02]: "We're working on tying QR codes on shelf ads directly to coupons and ensuring that in-store screens reinforce these messages consistently."

Ad Inventory and Off-Site Partnerships

Expanding Beyond Traditional Channels

Peter discusses the evolution of ad inventory in grocery retail, emphasizing the shift towards off-site partnerships to complement declining traditional media.

Peter V.S. Bond [16:21]: "How is ad retail media developing in terms of its off-site partnerships for ad units?"

Melissa highlights Ahold Delhaize's premier publishing network powered by Epsilon, leveraging first-party data for targeted advertising. She also mentions exploring social media and influencer integrations to enhance engagement.

Melissa Emmerich [16:59]: "Our off-site inventory powered by Epsilon utilizes our first-party data for precise targeting. We're also expanding into social media and influencer content to engage customers more effectively."

Closed-Loop Measurement Integration

The challenge of measuring the effectiveness of social media integrations within retail media is addressed, with Melissa indicating ongoing efforts to create a seamless measurement path.

Melissa Emmerich [17:35]: "We're actively working on integrating social media into our measurement frameworks to provide a closed-loop system that demonstrates tangible ROI to brands."

Regional vs. National Scale in Advertising

Importance of Regional Markets

Peter brings up the necessity for brands to understand the value of regional advertising platforms like Ahold Delhaize's banners, especially in major markets like New York City.

Peter V.S. Bond [21:15]: "How do you talk to brand marketers about why a super regional like Ahold Delhaize and the banners are an important part of their investment portfolio?"

Melissa emphasizes the significance of key regional markets, ensuring brands recognize the impact of advertising in dense metro areas.

Melissa Emmerich [21:20]: "Regional markets like New York City are crucial for any successful campaign. Our network allows for efficient buys in these high-impact areas."

Partnerships and Joint Business Planning (JBPs)

Streamlining Collaborative Efforts

Sriraja discusses the complexities brands face when interacting with multiple facets of retail media and the need for unified business conversations.

Sriraja Gopalan [22:11]: "How do you bring both merchant and brand perspectives together in a retail media campaign?"

Melissa explains Ahold Delhaize's approach to integrating traditional JBPs with initiatives in shopper marketing and loyalty programs to foster cohesive strategies.

Melissa Emmerich [22:44]: "We're unifying our JBPs to include merchant conversations, retail media, shopper marketing, and loyalty. This integrated approach ensures a singular, cohesive business dialogue rather than disparate discussions."

Future of Retail Media and Connected Commerce

Emphasizing Connected Commerce

In closing, Peter inquires about Ahold Delhaize's focus areas for future growth in retail media, to which Melissa points to Connected Commerce as a pivotal element.

Melissa Emmerich [24:39]: "Connected Commerce is the next wave for us. Alongside connected TV, we're working on integrating online and in-store experiences to provide a seamless customer journey."

Innovations in In-Store Retail Media

Sriraja raises the issue of stagnant planogramming mechanisms and the need for innovation in in-store retail media.

Sriraja Gopalan [26:04]: "Why hasn't the planogramming mechanism changed in years? Shouldn't there be an element to innovate in how shelves are managed and presented?"

Melissa acknowledges the potential for change, citing the development of digital shelves and e-commerce integrations as steps toward modernizing in-store experiences.

Melissa Emmerich [26:24]: "We've introduced digital shelves and extended our approach into e-commerce. There's always room to adapt and enhance how we engage customers in-store."

Conclusion and Key Takeaways

The episode concludes with heartfelt thanks to Melissa for her insights and a reminder for listeners to stay tuned for upcoming episodes, including content focused on female leaders during Women's Month.

Melissa Emmerich [27:10]: "It's been my pleasure. Thank you."

Peter V.S. Bond [27:13]: "Thank you for joining us."

Key Takeaways:

1. Consistent Measurement: Ahold Delhaize prioritizes consistent and transparent measurement practices to demonstrate ROI and ROAS effectively to brands.
2. Standardization Efforts: Active participation in industry standardization through the IAB ensures fair and comparable metrics across the retail media landscape.
3. Integrated Creative Strategies: Aligning creative elements across digital and in-store channels is crucial for maintaining consistent brand messaging.
4. Expanding Ad Inventory: Leveraging off-site partnerships and integrating social media are essential for comprehensive retail media strategies.
5. Regional Importance: Understanding and utilizing regional advertising platforms can significantly enhance campaign effectiveness in key markets.
6. Unified Partnerships: Streamlining JBPs to incorporate various aspects of retail media fosters better collaboration and performance.
7. Future Focus on Connected Commerce: Embracing Connected Commerce and innovating in in-store retail media are vital for future growth and customer engagement.

This episode offers a deep dive into the strategic approaches Ahold Delhaize USA employs in retail media, highlighting the importance of measurement consistency, standardization, creative alignment, and integrated marketing efforts to drive success in a digitally driven retail environment.