Unlocking the Power of Payments Media Networks in Retail: A Conversation with SnippMedia’s Tom Burgess
The retail media juggernaut is showing no signs of slowing down as retailers seize the opportunity to monetize first-party consumer data. Payments media networks (PMNs) are emerging as the next frontier, extending the reach of CPG advertising while revolutionizing the loyalty landscape.
From empowering CPG brands to connect with millions of banking customers to providing loyalty benefits for shoppers and top-of-wallet status for banks, PMNs are reshaping the retail advertising ecosystem in profound ways.
As president of SnippMedia, Tom Burgess is leveraging his years of digital advertising and loyalty experience to ignite exciting new opportunities in the payments media space.
Carol and Tom discuss the multi-stakeholder benefits of payments media networks along with best practices, pitfalls, and future possibilities as retail media and payments media networks converge.
Highlights from the interview:
How PMNs complement and amplify the benefits of retail media networks.
Why flexible redemption models enhance shopper participation and loyalty.
How SKU-level offers are changing the PMN game.
Why offsetting interchange fees is no longer an elusive goal for retailers.
KEY EXCERPTS
The banks have shopper data. The banks know where you shop, while the retailers know what you buy in their store. It's a really cool comparison when you look at the two because both have very large audiences.
In the banking industry, there have always been ads and loyalty driven off what they would call merchant-funded rewards or retail funded rewards. What Snipp is bringing to the market is new. Through our partnership with Band of America, for example, we have 47 million cardholders who have never seen an offer for a dollar off of food and beverage products or a dollar off of cosmetics. We're bringing SKU-level offers into the banking world.
CPGs are still getting a great deal of value by working with retail media networks but they haven't seen data like this before, so the targeting opportunity is outstanding. The thing that a payments media network brings that a retail media network don’t is retailer-agnostic eyeballs.
The banks have to get paid, but the retailers don't like the margin erosion that they see on their side when they pay as a percentage of a transaction. We’re offering a funded program by the CPG, so the retailer benefits. We’re bringing in funding from a CPG to drive a consumer into a particular retailer, so we can take a piece of that funding that goes through the CPG and share that with the retailer.
