The Reality of Retail Media’s Full-Funnel Promise
Retail media networks (RMNs) frequently present themselves as comprehensive full-funnel channels capable of driving awareness, consideration, and conversion at scale. However, brand advertisers, especially in the consumer packaged goods (CPG) sector, often express skepticism about these claims. Danielle Sporkin of Ferrero highlights key industry challenges such as audience overlap across RMNs and difficulties achieving consistent measurement on a national level. This overlap inflates reported reach and complicates attribution, prompting brands to question the true incremental value of retail media investments.
Ferrero’s Strategic Framework: Definition and Testing
Defining Retail Media for Brands
Ferrero approaches retail media pragmatically by defining it strictly as media opportunities directly offered by retailers. This includes retailer-owned data, on-site advertising slots, and off-site placements related to the retailer ecosystem. Ferrero distinguishes retail media from broader e-commerce media activities, acknowledging some strategic overlap but maintaining clear boundaries to manage expectations and measurement rigor.
“Precision at Scale” for Targeted Growth
Central to Ferrero’s strategy is the concept of “precision at scale”: the integration of broad national audience buys with highly targeted, addressable segments enabled by retailer data. This dual approach combines reach with relevance, allowing Ferrero to tailor messaging specifically for distinct shopper segments. The result is incremental uplift in both advertising effectiveness and brand awareness, demonstrating tangible gains beyond standard campaign benchmarks.
Internal Alignment for Retail Media Success
Effective retail media deployment requires strong cross-functional collaboration within Ferrero. Teams spanning brand marketing, trade, shopper marketing, and e-commerce work jointly to align objectives, investment decisions, and measurement frameworks. This collective ownership fosters consistency and agility in campaign execution, enabling the company to respond dynamically to evolving retail media offerings and challenges.
Key Takeaways for Brands and RMNs
Ferrero’s experience offers several lessons for brands and retail media network operators. First, defining retail media with clarity helps set realistic expectations and measurement standards. Second, experimenting with advanced targeting approaches, such as blending national reach with addressability, can drive meaningful incremental impact. Lastly, cultivating internal alignment through cross-department collaboration is vital to manage complexity and extract full value from retail media investments, especially given the persistent challenge of audience overlap.
