The definition of first-party data implies that whoever is using the data in question has a direct relationship with the consumer. In the case of retail media, this entails that retailers have gotten consent or permission from the consumer to use their data for promotional purposes such as marketing.

Does A Brand Using Retail Media Undermine The First-Party Nature Of The Data?

With privacy laws spreading around the globe, it’s critical for marketers to pursue compliant, privacy-friendly methods of targeting consumers with ads. Retail media is still a privacy-abiding method of advertising because the data is never handed over to the brand.

In more detail, the retail media exchange starts with a brand making a request to the retail media network. They’d like to advertise to a specific group of people that meet a set of criteria. The retailer then delivers ads, based on that request to the appropriate consumers. For a search ad on a retailer’s website for example, the request from the brand might be to have their product be placed at the top of a search that includes keywords directly related to one of their products.

Or if the brand wanted a display ad on the retailer’s website, they could take advantage of the retailer’s product purchase data, if available, to send a relevant ad. According to eMarketer, display ads in retail media will expand quickly in the years to come.

If the consumer has not made a purchase but has searched for a particular product, then it would make sense to send more ads featuring that item. And if they have made a purchase, then a complimentary offering would make more sense.

Even with offsite retail media ads, the audience data is never handed over to the brands but rather the brands (or a brand’s agency) will reach out to a retailer to activate those campaigns and the ad creative itself will feature the retailer’s logos that the consumer has given consent to.

Regardless of what format the brand’s ad takes, retail media advertising remains a privacy- friendly advertising solution.