How to Leverage a First Party Data Strategy for Off Site Retail Media Success

According to EMARKETER, US ad spend on off-site retail media will more than double over the next four years, reaching $28.05 billion by 2028, and making up over a fifth (21.8%) of total retail media network ad spend.

Let's discuss how tapping into retailers' first-party data can expand the reach of off-site retail campaigns, improve audience targeting, and boost conversion rates.

Tapping into Retailers' First-Party Customer Insights

E-commerce companies have access to an abundance of first-party data, includingcustomer purchase histories, site interactions, email engagement, loyalty program data, mobile app usage, surveys, and reviews.

But having this valuable data is only the first step. As part of their retail media offerings, many companies are now monetizing their audiences and making this data available for targeting across channels outside of their owned properties.

This includes advertising on social media platforms, search, display, online video, and connected TV (CTV).

This strategy ensures advertisers can still leverage the power of retailers' first-party data to connect with shoppers across additional channels where they're most active.

Currently, off-site display is the most popular format among worldwide marketers (36.4%), followed by online video (33.3%) and connected TV (25.7%).

Why First-Party Data is Essential for Off-Site Campaign Success

First-party data offers unparalleled insights into shoppers' behaviors and preferences, helping advertisers understand what drives their purchase decisions. A study by Google and Bain & Company found that companies effectively leveraging first-party data generated 2.9x more revenue compared to those that didn't.

Here is how to use this data for improved audience reach and engagement.

Precision Targeting

Targeted advertising involves understanding a specific audience and creating ads that speak directly to their needs. A first-party data strategy gives you the edge by providing insight into audiences' shopping habits, interests, and buying behaviors - ensuring your ads resonate and convert.

Real Results in Action

Chobani wanted to explore using CTV as a tactic to launch its new Zero Sugar Yogurt. The brand partnered with Target to test both brand and category-specific audiences (e.g., low-sugar purchasers, nutrient-dense purchasers, yogurt purchasers).

Leveraging Target's first-party audience segments and Bullseye Marketplace, Chobani generated 2.4 million video views, driving higher conversions and ROAS compared to other off-site channels like display and social.

Improved Ad Personalization

Personalized ads are designed to resonate with individual shoppers. Fifty-four percent of executives committed to personalization reported that they exceeded annual revenue targets compared to only 15% of those who reported they were not committed to the tactic.

First-party data enables brands to deliver:

• Ads for previously viewed items
• Smart recommendations for complementary products
• Targeted discounts and exclusive offers
• Loyalty incentives to deepen engagement

Real Results in Action

EasyJet leveraged first-party data to build individual emails that referenced travel histories and suggested new locations for each customer to visit. Seventy-five percent of recipients made a booking in the following 30 days, and 78% had positive sentiments about the campaign.

Key Metrics to Drive Campaign Success

Once you've created campaigns using first-party data, use these critical key performance indicators (KPIs) to measure impact:

1. Click-Through Rate (CTR): Measure ad engagement with CTR. For example, in Google Ads, look for 1.9% for search ads, and around 0.4%-0.5% for display ads. In email marketing, expect CTRs of about 2.5%-3.5%.

1. Conversion Rate: Track the percentage of users who take desired actions, such as signing up for a newsletter, joining a loyalty program, or making a purchase.

1. Return On Ad Spend (ROAS): Measure how much money you've made for every dollar spent on advertising. Aim for at least 4:1 ($4 earned for every $1 spent), although high-growth brands may push for a ROAS as high as 10:1.

1. Customer Acquisition Cost (CAC): Track the cost associated with acquiring a new customer by dividing the total cost of marketing and sales efforts by the number of new customers. A lower CAC means more efficient growth.

Pro Tip: A/B Testing

When you want to refine results, use A/B testing. Test two variations of different copy and creatives (titles, images, CTAs) to find what performs best. Fine-tuning is the key to surpassing your competition.

First-Party Data: Your Competitive Edge

A first-party data strategy isn't optional - it's your competitive edge.

Sixty-four percent of marketers report that first-party data leads to the highest increase in customer lifetime value. Ready to reap these rewards yourself?

We can help. Unlock new inventory and convert high-LTV customers with commerce media solutions from Fluent. Browse through our successful partnerships and contact us today to get started.

More resources to get fluent in:

Retail Media | Customer Relationship Management (CRM) | Customer Lifetime Value (CLTV or LTV)

Fluent, Inc. is a leader in performance marketing, offering data-driven customer acquisition and partner monetization solutions that exceed client expectations. We connect brands with consumers at the most optimal moment, unlock additional revenue streams for partners, and empower advertisers to acquire their most valuable customers at scale. Connect with us now to level up your business: https://fluentco.com/contact/

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