How chief ‘monetization’ officers are charting a new course for retail CMOs

How chief 'monetization' officers are charting a new course for retail CMOs

How chief ‘monetization’ officers are charting a new course for retail CMOs

Over the previous two years, one notable trend has emerged: a growing appetite for experiences beyond the confines of the largest internet platforms and across the open web.

Meanwhile, legislative changes in the advertising industry have affected how firms can bring their products to market. As a result, the greatest difficulty for marketers is to identify new audiences in a complying, privacy-conscious manner.

With customers increasingly visiting a rising number of merchants on the open internet, Chief Marketing Officers within these companies are in a great position to provide marketers with the commerce data they require to expand their addressable audience.

First-party data is becoming increasingly important.

To better understand how CMOs are responding, the most recent ‘Future of Commerce’ report polled 251 CMOs from consumer-facing retail firms and discovered that spending in first-party data strategy, partners, and matching technology increased by 26% for 2022.

Almost half of those polled (45%) saw the financial potential of monetizing first-party data as a major driver of increased investment in this sector, with other important influencers including changing advertising restrictions and broader consumer data privacy concerns.

In their new role as Chief Monetization Officers, 86% of UK CMOs expect the return on investment from advertising based on their first-party data to exceed prior advertising performance criteria set with big internet companies.

To that end, according to this year’s survey, more than nine out of ten CMOs believe the value of commerce data, which includes the retailer’s transactional, shopping intent, and contextual signals, has improved. Many people also believe that commerce data is currently the most or second most valuable form of data companies have for allowing sales growth.

Overcoming external obstacles.

Of course, first-party data is part of the data mosaic available to marketers. It can supplement, enrich, and eliminate the need for other types of data, but one company’s data rarely captures a comprehensive view of the entire purchase process of many target groups.

CMOs are increasingly looking beyond their own borders to see how data collaboration might improve outcomes. To that end, 41% of CMOs cited publisher willingness to match IDs that unlock the value of first-party data as a significant barrier to overcome.

A similar amount of respondents (41%) identified internal stakeholder understanding as an impediment. The issue appears to arise from the fact that 85% of CMOs believe their peers in the C-suite do not completely comprehend the value of first-party data. Moreover one-fifth believe opportunities are being squandered.

CMOs must be prepared for major eCommerce and regulatory developments that are on the horizon. Understandably, no single business has all the answers, which is where partners with a worldwide footprint and strong machine-learning capabilities can assist CMOs in bridging the first-party data gap. A better future for everyone is one in which large and small enterprises can continue to be heard, seen, and discovered.