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Operations, sales and advertising for the One Roof Media Network will be handled by Lowe's teams.
Lowe's Home Improvement Center Store . | Lowe's Home Improve… | Flickr (www.flickr.com)
Lowe’s retail media network operates under the banner of One Roof Media. Fittingly, it is now bringing more of the network’s operations in-house.
The news: Lowe’s will move all operations, sales and advertising teams for its retail media network under the One Roof Media Network. With the exception of a few partnerships, the home improvement giant will no longer work with outside tech companies agencies, effective Jan. 31.
What are the exceptions? Lowe’s said sponsored search and product ads will still be powered by Criteo, while Yahoo will power offsite advertising that uses the Lowe’s network and data, such as digital out-of-home, addressable TV and connected TV.
Does this come with improved capabilities? Yes, Lowe’s also said it launched new advertising technology features for the network. These include:
Key quote: "This is the next step in becoming a best-in-class media network and delivering white-glove customer service for our brand partners," said Jen Wilson, SVP of enterprise brand and marketing at Lowe's, in a statement. "Managing these functions internally under one roof will enable us to build stronger, more compelling campaigns better aligned with our brands and customers' interests and needs, which in turn will drive increased shopper engagement and greater ROI for our advertisers."
Is Lowe’s making progress with retail media? Yes, the network launched in 2021. It currently serves more than 200 clients, such as Moen, Stanley Black & Decker and Whirlpool Corporation. Through advertising on its ecommerce site and other properties, the network helps brands connect with a customer base of more than 100 million shoppers.
What it says about retail media:
Cross-category: Much of the attention on retail media is focused on Amazon, Walmart and grocery businesses such as Instacart and Kroger. Their large assortments and well-trafficked marketplaces lend well to the advertising models. Lowe’s progress on this front is a sign that there are retail media opportunities in specific categories beyond the widest retailers. The key components are a marketplace with lots of visitors and capabilities to leverage first-party data and run advertising. What you’re selling is less important. The potential for growth into new areas of commerce is one reason why eMarketer projects retail media spend will reach $61.2 billion in 2024 in the U.S., which is nearly 20% of total digital ad spend.
Going under one roof: While retailers are the names on all of the retail media networks that launched over the last couple of years, many of them are powered by tech companies and agencies that do the lifting and provide the systems behind the scenes. But with growth, there are opportunities to build an internal team. Lowe’s is opting for this path. As others follow, it’s a big reason why retailers will look more like tech companies going forward. It begs a question: Will this give way to consolidation among tech providers as a result?The partnership brings together subscriptions and shoppable content.
A Wendy's ad on Roku. (Courtesy photo)
Roku and DoorDash are teaming up to connect TV and food delivery in one experience.
The news: Roku and DoorDash announced a new partnership that will allow people to order food delivery from a shoppable ad on their TV. Along with the capabilities being put in place by the tech platforms, Wendy’s is also adding shoppable content that will provide a discount on ordering at launch.
How does it work? For Roku account holders, there are three parts to the partnership:
DashPass: DoorDash is providing a complementary six-month DoorDash subscription. Called DashPass, this provides $0 delivery fees on orders from restaurants, grocery and retail stores on DoorDash’s marketplace.
Shoppable ads: Roku viewers will be able to click from their remote to order straight from ads on Roku via offers provided through DoorDash. For the first year, DoorDash will be the exclusive ad solution provider for restaurants on its marketplace to buy shoppable ads on Roku. With this, restaurant advertisers will also be able to work with DoorDash to attribute, target and measure TV streaming ads.
Wendy’s: The companies said Wendy’s also upped its digital capabilities as part of this partnership. The chain will make offers available through the shoppable ads. At launch, it will provide $5 off any Wendy’s purchase of $15 or more.
Key quote from Rob Edell, GM and head of consumer engagement at DoorDash: “While this offer unlocks DashPass benefits and perks for Roku users everywhere, it also provides our merchant partners with an opportunity to promote DoorDash offers through TV streaming. Consumers can conveniently and affordably get the best of their neighborhood delivered to their door, while brands can reach diners at the right time and drive instant conversion from the comfort of the living room.”
The partnership is a sign that several different strategies being employed in digital media and commerce are converging:
Streaming and delivery: Watching TV and ordering food is a common behavior. In fact, Roku research indicates that one in three users order takeout or food delivery weekly. The partnership shows how there is room for the platforms that provide each of these distinct services to work together. It's a reminder not just to monitor how customers use your product, but what other products and services they use with it.
Shoppable ads and subscriptions: As digital commerce grows, there’s interest in reducing the steps between when a user thinks about making a purchase, and when they actually click “Buy.” This partnership does that in a couple of ways. With shoppable ads, Roku viewers can order directly from their TV, and even within the show they are watching. Switching devices may be a barrier, however small, to a sale. On DoorDash’s side, putting a subscription in place means users don’t have to think about logging in or consider delivery fees. This shows how introducing more interactive capabilities to streaming can open up new opportunities for commerce. Roku data shows that 36% of its users are interested in receiving interactive offers, such as a scannable QR code or text message. Such capabilities allow users to take action without switching screens.
Retail media and CTV: On the advertising side, the partnership is connecting DoorDash’s ad network with Roku’s content capabilities. DoorDash operates as a marketplace, while Roku serves ads during streaming content. Both have powerful customer data. DoorDash has purchase-level, or first-party, data. Roku has data on millions of customers, and the ability to reach them while they are doing the common activity of watching TV. The platforms also both have the ability to target users and measurement capabilities that can make this whole system even more powerful. While this partnership sets out one way the companies will work together immediately, it’s a safe bet that the partners will find other areas of mutual benefit to explore.
Further reading: It’s just the latest move by Roku to bring shoppable content to the platform. Last year, the streamer partnered with Walmart to pilot direct ordering straight from shoppable ads.
Is Amazon next? Break down the individual parts of this partnership: Subscription, delivery network, marketplace, streaming platform, advertising capabilities. Amazon owns each of these, and it even has a restaurant delivery partnership with Grubhub. Will it put these parts to work in a similar way? The better question may be, how long until it does so?