Commerce media service models (also known as 'Retail media') enable brands to advertise on a retailer's website, app or other digital properties. This allows brands to connect with shoppers while they're actively browsing and considering products, which helps drive sales and increase brand awareness.
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Understanding commerce media service models
There are two types of commerce media service models:
- Managed service
- Self-service
Each model offers different levels of control, transparency and scalability. Understanding the differences, pros and cons of each approach can help both retailers and brands determine the model that best aligns with their specific needs and goals.
Managed service model
With a managed service model, the retailer sets up, optimises and reports on campaigns for the brand. This model is suitable for brands new to commerce media or brands seeking a more hands-off approach.
Pros
- Hands-off approach: The retailer handles all campaign aspects, from setup to optimisation and reporting.
- Access to expertise: Brands benefit from the retailer's knowledge in running successful campaigns.
- Full functionality: This service offers full support for all campaign types and functionalities.
Cons
- No account visibility: Brands can’t access campaign data or metrics directly.
Self-service model
With a self-service model, you can set up, optimise and report on your campaigns on your own. Brands also have access to reporting tools.
Pros
- Brand control: Brands can set up their campaigns, including targeting, bidding and creative elements.
- Transparency: Self-service platforms provide detailed reporting and insights, giving brands clear visibility into campaign performance.
- Flexibility: Brands can adjust campaigns in real-time based on performance data and optimise toward specific goals.
- Audience sharing: Brands can access audience groups shared by retailers to reach target audiences and improve campaign performance.
Cons
- Limited functionality: A self-service model has limited campaign types and advanced features compared to managed services.