Matt: I'd love to know, from your perspectives, what are the key learnings you've gained in retail media during your career?
Alin: Retail media goes beyond typical performance metrics like customer acquisition cost, cost per click, and return on ad spend. It also boosts brand loyalty and customer lifetime value. Campaigns on retail media networks offer great incrementality and benefits beyond the bottom of the funnel, making it a full-funnel channel for brands.
A good mix of retail media should focus on both inventory on retailers' platforms and off-site connections to reach customers at different touchpoints.
A good mix of retail media should focus on both inventory on retailers' platforms and off-site connections to reach customers at different touchpoints. These are key learnings from my experience with retail media.
Matt: What advice do you have for brands exploring this for the first time? Any unique insights for newcomers to the industry?
Alin: Consider the product, category, and target audience to choose the right retail media networks, both endemic and non-endemic. Non-endemic networks are growing, offering opportunities to target customers outside traditional sales locations.
Start by identifying key retail media channels. In Southeast Asia and APAC, customer behavior is fragmented and mobile-first, making them harder to reach. Test various retail media networks and ad formats to see what works, then focus on the best performers.
Monitor metrics closely to ensure you're measuring effectively and achieving incremental sales, not just organic sales shifts. Once you identify successful platforms, scale and deepen partnerships, exploring off-site media and influencer marketing for more customer engagement.
Matt: Awesome, loads to take away. I had a question about the differences in the Southeast Asian market. Have you noticed any key trends from market to market? For example, does Singapore behave differently from Thailand?
Do you have any examples where customer behaviour in Southeast Asia is markedly different or something that surprised you?
Alin: Southeast Asia has nine to ten distinct markets, each unique in history, language, and customer behaviour. Marketers must adapt to these nuances to engage customers effectively.
Customers here like to research and compare across various platforms before purchasing, unlike in the US, where they may stick to one site like Amazon or Google. This complexity requires marketers to tailor their strategies to each market.
The diversity and fragmentation of these markets were surprising to me. Messaging needs to be adapted to local languages and experiences. For instance, payment options vary: cash on delivery is common in the Philippines, while credit cards dominate in Singapore.
Delivery promises also differ. Remote areas in countries like the Philippines or Indonesia may not support next-day delivery, so marketing messages should reflect that. Retail media helps by providing data to segment customers and tailor communication strategies effectively.
Matt: I'd love to hear an example of an experiment you ran at Zalora, whether it succeeded or failed, and what you learned from it.
Alin: We frequently test new retail media formats to support our brand partners, ensuring they can engage with customers at every step.
Recently, we tested different ad placements to see their impact on conversion and click-through rates, ultimately benefiting the brands. This helps us open new advertising opportunities and justify retail media's value to stakeholders.
One innovative test involves the search navigation bar, showing relevant retail media products based on your browsing and shopping history as you type. We have many such tests in the pipeline, guiding our decisions on new retail media and marketing services.
Matt: Great to hear. Last question: What future trends do you see in retail media? Do you expect significant transformations and disruptions in the next few years?
Alin: The media and marketing space is currently exciting due to its rapid growth. We are now in the third wave of digital marketing, transitioning from search marketing to social media, and now to retail media, focusing on engaging customers during their shopping mindset.
Retail media is set to see more innovation as brand partners and advertisers use it for growth.
Retail media is set to see more innovation as brand partners and advertisers use it for growth. Budgets and resources for retail media will increase, though not all platforms and brands are on board yet, indicating further growth potential.
Retail media will evolve from performance media to a full-funnel solution, enabling comprehensive campaigns using first-party data across various channels. Off-site campaigns with display and video assets will also grow, creating seamless customer experiences.
Non-endemic partnerships present additional growth opportunities, focusing on brands not necessarily selling on retail platforms. Integration and coordination between platforms will be vital for seamless campaign execution and ecosystem maturity.
Ultimately, the goal is to make retail media easy and efficient, with numerous opportunities and trends in the industry.
