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Procter & Gamble is seeking to improve its programmatic campaigns by asking retailers to share their customer data so that it can target ads more effectively.
The world’s largest advertiser is asking retailers across Europe, India, the Middle East and Africa to participate in “performance marketing retail partnerships”.
According to Digiday, that could mean P&G leveraging retailers’ loyalty card data to optimise ad campaigns to customers who are likely to shop at a specific outlet.
The trade-off is that P&G would be able to feed the customer data into its data management platform to effectively build a “makeshift ID graph” to target audiences, while retailers may find they’re more likely to make a sale.
“We’re starting to ask retailers – with our ad tech partner – to share shopper ID data,” confirmed Tom Pickford, P&G’s director of e-business for Europe, India, Middle East and Africa.
Speaking during last week’s IGD conference in London, he added: “It’s a big ask because it’s going way beyond EPOS [electronic point of sale] data and click data.
“Performance marketing is something that all the digital direct-to-consumer brands can do because they have top-of-funnel and bottom-of-funnel data. We’re going to build a very strong ID graph with our own proprietary DMP [data management platform] and demand-side platform.”
P&G’s push for data exchange and better targeted programmatic ads comes as it and other FMCG companies recognise the importance of e-commerce for future growth.
Pickford said that e-commerce is already worth $4.5bn to P&G, representing 6% of its overall sales, and the company expects that figure to rise to $10bn by 2021.
“As more of our media dollars shift from traditional channels to digital, within digital more of our media dollars are shifting from direct purchase to programmatic media,” he said, when explaining how budgets will help with the push to e-commerce.
However, as Digiday noted, retailers have long resisted sharing customer data because of its strategic value, while the introduction of the European Union’s General Data Protection Regulation (GDPR) could add to their concerns.