The Future of Retail Media Platforms With Dean McElwee - Episode 203
INTERVIEW WITH DEAN MCELWEE
DESCRIPTION
This week on the Ecommerce Braintrust podcast, we are joined by special guest Dean McElwee, Director of International Ecommerce Strategy, Global Tools and Storage at Stanley Black & Decker Inc. In this episode, we are talking about retail media, the current landscape, and what it's going to look like in the future as brands navigate more retail media channels.
Kearney estimates that retail media spend will go from an estimated $4 to $5 billion in 2019 to reach $15 to $20 billion by 2024. That's tripling or quadrupling that ad spend amount in the space of three years, and that is really incredible growth.
Tune in today to hear Dean’s unique perspective on the topic!
Dean is the Director of International Ecommerce Strategy, Global Tools and Storage for the Stanley Black and Decker Company. His role covers Latin America, Europe, Middle East, Asia, New Zealand, some of the fastest-growing and most penetrated eCommerce markets in the world. During his career, Dean has gained expertise in retail eCommerce, b2b eCommerce, and direct to consumers, as well as developing new and destructive business models. With more than 18 years of experience as a commercial leader, he has a remarkable track record of designing and implementing innovative growth strategies that not only drive performance but also higher engagement, and profit. Dean has successfully led business initiatives across sales leadership, retail consulting in eCommerce. However, working in Africa, Europe, and across multiple other regions gives him a unique insight into working with countries in various stages of business and eCommerce development.
“Great thing about eCommerce is the challenging way of going on the market. Who are we focusing on? Are we focusing on the retailer or are we focusing on the shopper?”
KEY TAKEAWAYS
One of the reasons why retail media spend incredibly growth is the rise of eCommerce. There's a halo effect between sales channels and retail media networks, and online and offline sales channels.
Digitally influence sales.
ECommerce is a bigger deal than it has been in the past, so more dollars are going to be forming there. Digital is going to be a preferred destination for marketing dollars ahead of the trade.
Retail Media has a great ROI.
CPGs have begun shifting trade funds, trade marketing, and investments from other marketing channels.
Retail media is going to be a bigger and bigger part of advertising budgets.
Retailers are facing financial pressure.
Brands are going to have to work with every type of retailer and they will have to merge that with a typical media buying network.
Amazon has great analytical capabilities and it is one of the leaders in this space.
The important thing for manufacturers is to make sure all the money they are paying to have a performance from that money.
Mostly in companies Sales and Marketing departments are working separately, the Sales department is doing negotiations and Marketing department is not aware of those contracts. It is about how organizations come together and work with retailers to get the best outcome.
In order to track the impact online and offline campaigns Tasco runs a loyalty program, they stitch together in-store behavior with on-platform behavior.
Focus on what people don’t have or what they would like next.
Capability and the culture in the organization about using analytics to make better decisions.
It is important to determine how to fund and how to make decisions on whom and where to fund.
Media spend should come from both, marketing and sales.
The important thing for brand managers is to determine which customers they want to attract and where they are.
You can focus on what is the behavior you want from people rather than the behavior they have.
Amazon’s communication is really strong and Amazon is the hypermarket of the internet.
The media value of something like Amazon both in-store and even either digital can be something that brands should focus on.
MENTIONED IN THIS EPISODE
Connect with Kiri Masters
Learn more about Bobsled Marketing
Connect with Dean McElwee
Learn more about Stanley Black & Decker, Inc.
Read Kearney’s analysis