Lowe’s Latest Retailer Trying To Attract Advertiser Budgets
- Home retailer Lowe’s is launching an advertising arm to help brands promote their products.
- More than 100 brands like Samsung and Kohler have already carried out pilot tests.
- Lowe’s follows Walmart, Target, CVS and Ulta Beauty in launching an advertising platform.
Lowe’s goes into advertising.
The home-based retailer is rolling out a new advertising arm called One Roof Media Network which will sell advertisements on its website and app, including banner ads and search ads. It will also allow its first party data to be used to target digital advertisements outside of its properties.
More than 100 brands, including Samsung, Kohler, and GE Lighting, have piloted with Lowe’s since March. A kitchen and bathroom brand saw a 700% increase in advertising return on investment, the company said.
Lowe’s wanted to capitalize on the explosion of retail media and the popularity of home improvement projects amid the pandemic, said Marisa Thalberg, executive vice president and director of brand and marketing at Lowe’s . Spending on e-commerce advertising will grow 28% year-on-year to $ 24 billion in 2021, according to eMarketer.
âRetail media has become an area of ââgrowing interest for advertisers and Lowe’s aggregate general audience makes us uniquely positioned to respond to it,â Thalberg said.
Walmart, Target, CVS, Home Depot and Ulta Beauty have also stepped up their advertising businesses to take advantage of the growth in online shopping and offset declining retail margins. Brands, hungry for advertising alternatives to Amazon and keen to generate more sales, are also spending more at retailers. So anyone who doesn’t start an advertising business is leaving money on the table, said Sarah Hofstetter, president of ecommerce analytics firm Profitero.
While Lowe’s is more specialized than general retailers like Walmart and Target, it presents its first-party data encompassing “millions of buyers” that advertisers can use to create more specific offers. The retailer also plans to produce personalized searches, co-branded content on its social channels and partnerships connecting brands with top home influencers on behalf of its advertising partners.
âWith the expected depreciation of third-party data, our information is an invaluable tool that helps us ensure our brand partners reach engaged home lifestyle buyers,â Thalberg said.
Lowe’s worked with Criteo and CitrusAd, owned by Publicis, to develop its advertising business. After the pilot, it is now opening its platform to a wider range of advertisers and offering more advertising inventory.
But even as more retailers and other companies like Uber go into their own advertising business, many of these platforms are emerging, difficult for advertisers to use, and do not provide enough sales data. to satisfy ad buyers, said Elizabeth Marsten, senior manager. strategic market services to the Tinuiti advertising agency.
âThe assumption is that these retailers know what they’re doing, but the connection is broken,â she said. “The onus is on the brand to prove that the investment has paid off.”