Podcast Summary: Retail Media & Measurement Standards with IAB's Jeff Bustos

Podcast Information:

• Title: The CPG Guys
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Episode: Retail Media & Measurement Standards with IAB's Jeff Bustos
• Release Date: December 21, 2024

Introduction

In this episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan engage in a comprehensive discussion with Jeffrey Aragon Bustos, Vice President of Measurement Addressability Data at the Interactive Advertising Bureau (IAB). The conversation delves deep into the evolving landscape of retail media, the challenges of measurement standards, and the future trajectory of the industry heading into 2025.

Guest Introduction: Jeffrey Aragon Bustos

Jeffrey Aragon Bustos, a seasoned expert in retail media measurement, brings a wealth of experience from his tenure at renowned advertising agencies and his current role at the IAB. With a background spanning Interpublic, WPP, and Omnicom, Jeff has established himself as a pivotal figure in setting measurement standards within the retail media space.

Career Journey of Jeff Bustos

Jeff's career trajectory is marked by a continuous quest for knowledge and adaptability. Starting as a copywriter in a real estate company, he self-taught paid search strategies to enhance his role. His move to New York propelled him into the heart of the advertising world, where he honed his skills across various roles:

• Early Roles: Focused on paid search and social advertising, managing significant accounts like Dell and Bose.
• Advanced Positions: At Mediacom, Jeff led data strategy initiatives, experimenting with data clean rooms, identity solutions, and advanced television metrics.
• Current Role at IAB: Leading retail media and cross-channel measurement, Jeff emphasizes the importance of consumer-centric advertising and the integration of measurement standards globally.

Notable Quote:

"Ensure that we have measurement standards which we have released. And it's also exciting to see that we have had measurement standards across different parts of the world as well."
— Jeff Bustos [07:53]

Current State of Retail Media Heading into 2025

Retail media has seen exponential growth over the past few years, becoming a cornerstone for brands and retailers in engaging consumers both in-store and online. Jeff highlights the fragmentation in the retail media landscape, with numerous platforms emerging globally:

• Global Expansion: Retail media is not confined to the US; regions like Latin America and Europe are witnessing advanced in-store media strategies.
• Measurement Standards: The lack of standardized measurement across platforms remains a significant hurdle.
• Marketplace Dynamics: Retailers are balancing programmatic ad tech investments with traditional social platforms, leading to a complex ecosystem.

Notable Quote:

"2025 is going to be an inflection point. I think one to your first point, there's way too many retail media networks."
— Jeff Bustos [16:45]

Measurement Challenges and the Concept of Incrementality

A primary focus of the discussion revolves around the challenges in measuring the success of retail media campaigns. Jeff introduces the concept of incrementality—the ability to measure the net new impact of advertising efforts:

• Incrementality Defined: It assesses whether an ad campaign leads to additional sales or brand engagement beyond what would have occurred organically.
• Challenges: Aligning incrementality metrics with business objectives and understanding their relevance across different product categories.
• Strategic Insights: Brands should focus on leading indicators that correlate strongly with desired outcomes, such as purchase frequency and basket size.

Notable Quote:

"Incrementality has become such an important metric within retail media... it's not a new metric, is because it's the first time within an ecosystem where the ad is placed in the same place, an ecosystem in which the transaction or outcome happens."
— Jeff Bustos [20:00]

Joint Business Plans (JBPs) and Their Inconsistency

The conversation shifts to Joint Business Plans (JBPs), highlighting their inconsistent implementation across the industry:

• Lack of Standardization: Different retailers approach JBPs uniquely, making it challenging for brands to navigate and leverage these partnerships effectively.
• Internal Collaboration: Successful JBPs require brands and retailers to align internally, ensuring that product placement and advertising strategies are coherent.
• Future of JBPs: Expectation of more flexible and quarterly JBPs, allowing brands to adjust strategies in response to evolving market dynamics.

Notable Quote:

"There is not consistency... everyone’s doing JBPs differently. As a retailer, as a brand, it’s incredibly important that you coordinate internally to understand what you’re negotiating."
— Jeff Bustos [24:15]

IAB’s Role in Setting Standards and Global Collaborations

Jeff details the IAB's initiatives in collaborating with global stakeholders to establish unified measurement standards:

• Partnerships: Collaborations with the Media Rating Council (MRC) to develop retail media measurement guidelines.
• Global Outreach: Engaging with IAB chapters in Colombia, the UK, France, and Australia to harmonize standards across regions.
• Localized Guides: Release of the Retail Media Buyer's Guide in multiple languages, incorporating input from retailers across Latin America.

Notable Quote:

"We partnered with the MRC for the Retail Media Measurement guidelines which we published, finalized in January... cross Atlantic collaboration in which we were trading notes with different retailers and see what was working, what wasn’t working."
— Jeff Bustos [27:18]

The Impact of AI on Retail Media

Artificial Intelligence (AI) emerges as a transformative force in retail media, offering advanced capabilities in measurement and optimization:

• Generative AI Applications: Enhancing consumer experiences through solutions like Instacart’s recipe generator, which streamlines the shopping process.
• Machine Learning: Leveraging regression models and machine learning to identify key metrics that influence outcomes like Return on Ad Spend (ROAS).
• Automation and Optimization: Using AI to automate creative optimizations and generate dynamic content based on real-time insights.

Notable Quotes:

"AI presents us with the ability to build that into the algorithm and start to tease it out so that the lawyers spend very little time actually having to manually review content."
— Sri Rajagopalan [35:38]

"AI use will become much more. We'll start seeing a lot more of that... advanced measurement we'll see machine learning."
— Jeff Bustos [32:32]

Final Insights and Future Outlook

As the episode concludes, both hosts and Jeff reflect on the future of retail media:

• Global Innovation: Observing how different regions innovate uniquely, such as live shopping in Asia and creator economy integrations in Latin America.
• Standardization Efforts: Emphasizing the importance of global collaboration to establish consistent measurement and advertising standards.
• Growth Opportunities: Recognizing the potential for continued expansion and the role of AI in scaling retail media initiatives effectively.

Notable Quote:

"We’re seeing innovation happen differently in different parts of the world... retailers can do cross global collaboration and start learning from each other."
— Jeff Bustos [41:38]

Conclusion

This episode of The CPG Guys provides an in-depth exploration of the current state and future prospects of retail media. With insights from Jeff Bustos, listeners gain a nuanced understanding of the complexities in measurement standards, the pivotal role of AI, and the importance of global collaboration in shaping the retail media landscape. As the industry moves towards greater standardization and technological integration, the discussions underscore the critical need for adaptable strategies to navigate an ever-evolving market.

Notable Quotes with Timestamps:

• Jeff Bustos [07:53]: "Ensure that we have measurement standards which we have released. And it's also exciting to see that we have had measurement standards across different parts of the world as well."

• Jeff Bustos [16:45]: "2025 is going to be an inflection point. I think one to your first point, there's way too many retail media networks."

• Jeff Bustos [20:00]: "Incrementality has become such an important metric within retail media... it's not a new metric, is because it's the first time within an ecosystem where the ad is placed in the same place, an ecosystem in which the transaction or outcome happens."

• Jeff Bustos [24:15]: "There is not consistency... everyone’s doing JBPs differently. As a retailer, as a brand, it’s incredibly important that you coordinate internally to understand what you’re negotiating."

• Jeff Bustos [27:18]: "We partnered with the MRC for the Retail Media Measurement guidelines which we published, finalized in January... cross Atlantic collaboration in which we were trading notes with different retailers and see what was working, what wasn’t working."

• Jeff Bustos [32:32]: "AI use will become much more. We'll start seeing a lot more of that... advanced measurement we'll see machine learning."

• Jeff Bustos [41:38]: "We’re seeing innovation happen differently in different parts of the world... retailers can do cross global collaboration and start learning from each other."

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• Website: cpgguys.com
• Contact: contact@cpgguys.com, reading@cpgguys.com
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Note: This summary is intended for informational purposes and does not substitute for listening to the full episode.