Retail media is booming and offers retailers new opportunities to reach target groups. But how do you successfully implement the transformation? Patricia Grundmann, Vice President Media & Retail Media at OBI and Managing Director of the OBI First Media Group, explains in an interview how the company implements marketing and the use of advertising messages in the digital age, what technological challenges there are and why omnichannel retailers can benefit in particular.
Patricia, what is currently the biggest challenge in digital marketing for retailers?
“The biggest challenge is to integrate data from different sources and use it sensibly. Data is like gold - it determines how relevant the advertising messages are. This means you need a central platform that makes data available across different channels - from display ads to digital out-of-home spaces. Building an integrated ad tech stack is essential to bring these pieces of the puzzle together and create an end-to-end solution.”
Welche Strategie verfolgt OBI, um diese Anforderungen zu meistern?
“We think internationally and are looking for a set-up that is suitable for all countries in which we are represented and all use cases - whether for our own needs or for third parties who benefit from our technology. The focus is on reach: 250 million people visit our stores every year. This means we need to make store media space accessible via programmatic platforms or direct bookings. At the same time, we standardize advertising formats onsite and in the app so that they are efficiently linked to our data segments. This means that advertisers - whether it's OBI for their own purposes or advertising partners such as Bosch - can fall back on classic media targeting logic and classic media tools.
Is it more difficult to think about this process globally than locally?
It is indeed more difficult to find suitable technology partners on a global level. While there are many exciting providers in Germany, you naturally have to extend the search radius internationally - all the way to Australia, the USA or France. This also requires an international team that understands the different market requirements. Bringing these together and then adapting them for OBI is something that an external service provider can never do for you - you always have to do it yourself.
What significance does retail media have in this context - for you and in general?
Retail media is a huge topic! Many retailers are just starting out or have expanded their offerings in recent years. The Retail Media Circle at the Federal Association of the Digital Economy shows how important Germany is for development in Europe. Retailers such as Douglas, OTTO, Zalando and the Schwarz Group are strong drivers.
Do you have an example of a successful retail media strategy?
Retail media differs depending on the retail model. Omnichannel retailers like us, for example, benefit from additional store space and an omnichannel approach that pure e-commerce marketplaces like Zalando, OTTO or Amazon can't offer. Things like the integration of loyalty programs also work differently depending on which channels you use. There are also different challenges depending on the industry. Pharmacies, for example, are subject to completely different regulations in terms of advertising than a beauty or DIY segment. So I find it difficult to speak of retail media as one. But that's exactly why the associations exist, to ensure the greatest possible synergies, but also the individuality that is needed.
What is an absolute no-go in digital marketing?
I would advise against looking at touchpoints in isolation. For example, if we at OBI only worked with display ads, it wouldn't work because the customer journey doesn't work that way. It goes through different channels. That's why we always create a holistic and integrated media plan for partners. The aim is to place the right message in the right place at the right time. You should look at how it fits best into the overall media mix in terms of timing, reach and visualization.
What would you recommend to other retailers?
Focus on your USP! As experts in home and garden, we do the same. We do nothing else all day but deal with this target group. And that should apply to all retailers and their target groups. Use your data and experience. This is an absolute USP that you have as a retailer, and we are happy to pass this on to our advertisers.
