AI Applications throughout the Retail Media Value Chain explored

In the dynamic world of retail, Artificial Intelligence (AI) is making a significant impact, revolutionizing various aspects such as attention, decision-making, and purchase areas. This transformation is leading to increased efficiency, scalability, and precision, securing competitive advantages for companies that strategically embrace AI and foster cooperation.

One notable example is retailmediatools, which leveraged Language Model (LLM) technology for AI-assisted campaign planning. The result? A staggering 42% increase in click-through rate, doubled return on ad spend (ROAS), and accelerated campaign planning.

However, AI's potential in retail media is not without challenges. Data quality, transparency, and systematic integration into existing workflows pose significant hurdles. Yet, the benefits are undeniable. AI offers immense possibilities for efficiency gains, data-driven decisions, and creative opportunities.

Another company, Anybill, used AI to analyse Point of Sale (POS) data in real-time, improving campaign efficiency and increasing basket size through personalized recommendations. This strategic move led to improved performance and growth.

Grubhub optimized its campaigns for maximum performance with the help of Koddi's AI tools, resulting in a 6% revenue increase. Similarly, Publicis Warehouse used AI for AI-assisted full-funnel campaign activation for Samsung on Amazon, leading to a conversion rate increase by triple digits, a significant decrease in cost per acquisition (CPA), and substantial revenue increase for targeted products.

Lacalut, a German company, celebrated its 100th anniversary by creating Germany's first fully AI-generated TV spot. The innovative advertising strategy resulted in a 41% increase in advertising recall and every second viewer imagining buying Lacalut.

Notable companies such as ADEO, CONVOTIS, and members of the Retail Media Circle of BVDW have also been implementing AI-driven solutions for optimizing retail media value chains. For instance, ADEO used AI-based product referencing and attribute extraction using Google Cloud's Gemini LLM, while CONVOTIS provides data-driven monitoring solutions for retail and e-commerce.

The Federal Association of Digital Economy (BVDW) has published a whitepaper highlighting AI's role in the retail media value chain, emphasizing its potential for growth and innovation.

In the electronics and health technology sector, an unnamed conglomerate optimized its campaign structure and saved 44,000 euros in ad costs with the help of Skai's AI. Haleon Italy also optimized programmatic advertising for two brands and increased ROAS by 11% using Profitero data and Publicis' Shelf Intelligent Media.

AI was also used for location-based digital signage, resulting in doubled impressions, eye contacts increasing sixfold, and landing page conversion rate doubling. Zalando used AI to create hyper-realistic product images for VANS, resulting in a 11% increase in average conversion rate and individual articles seeing up to 84% increase.

Lastly, L'Oréal and flaconi achieved a conversion rate of 8.2% and ROAS of 766% with Google's Performance Max, which optimized AI-driven campaigns.

In conclusion, AI is transforming retail media, offering immense potential for efficiency gains, data-driven decisions, and creative possibilities. While challenges remain, the benefits are clear, with numerous companies reaping the rewards of AI implementation. The future of retail media looks bright, with AI playing a pivotal role in shaping this exciting landscape.