What the PromoteIQ shutdown means for advertisers and why an in-house retail media operation is the solution.
Microsoft is officially sunsetting PromoteIQ’s onsite offering, marking a significant shift in the retail media landscape. This closure comes on the heels of a new collaboration between Microsoft Advertising and Criteo, announced on July 11th, 2024, though the exact reasons for PromoteIQ’s shutdown remain undisclosed.
PromoteIQ was once a key player in the early wave of retail media, providing retailers with a simple way to monetize their digital assets through targeted sponsored listings. But as the retail media landscape has rapidly changed over time, PromoteIQ’s product development did not match the pace of their competitors. While this shutdown will significantly impact its users for a time, it opens the door for retailers to rethink their retail media strategies. Bringing retail media operations in-house can give retailers greater control and customization, allowing them to move beyond the early wave of commodification that PromoteIQ represented.
PromoteIQ, founded in 2012 and later acquired by Microsoft in 2019, was a New York-based retail media platform that used a simple, tag-based integration to help retailers monetize their digital assets. It grew quickly because of its ability to seamlessly integrate with Microsoft tools and its flexible ad relationship management. However, the tag-based system, while easy to implement, couldn’t offer the level of ad unit customization or targeting control that modern retailers want.
July 2024, Microsoft officially shut down PromoteIQ’s onsite offering, marking the end of an era for the platform. This decision followed closely after the announcement of a new collaboration between Microsoft Advertising and Criteo on July 14th, 2024. Criteo, a global commerce media company, is now poised to take a leading role in Microsoft’s retail media strategy, effectively replacing the legacy PromoteIQ technology.
“We plan to work with Criteo as our preferred partner to serve our retailer clients’ onsite needs moving forward.” says Lynne Kjolso, Microsoft Advertising VP of Global Partnerships and Retail Media, in a Microsoft Advertising blog. Essentially, Microsoft Advertising’s retail media partners will still have access to Microsoft Advertising advertiser demand, but will be forced to use Criteo’s tech for ad serving and campaign management.
What does all this mean for retailers who previously relied on PromoteIQ? Right now, these retailers face challenges like:
To minimize these negative effects, retailers must make a decision: continue leveraging Microsoft Advertising, but through Criteo’s technology, or explore a more reliable alternative. But instead of moving from one black box to another, this moment presents an opportunity for retailers to build a resilient, future-proof retail media strategy that isn’t vulnerable to sudden de-platforming. The best way to achieve this? By bringing retail media operations in-house.
As retailers move away from PromoteIQ, in-house retail media stands out as a powerful way to regain ad serving control, provide differentiated ad format and targeting offerings to advertisers, and prioritize your ad business. In-house retail media networks are the top revenue-driving ad platforms in the world. Amazon, Walmart, eBay, Etsy, and Instacart all have in-house retail media networks, and they all see millions and even billions in year-over-year revenue.
Let’s explore the benefits of owning your retail media.
Increased Control and Customization
An in-house retail media operation goes beyond just keeping control of a crucial part of your business -- it gives you unmatched authority over your media strategy and tech stack. With in-house retail media you can run your ad program the way you want, including maintaining full control over which ads are in each placement. This means you’re never at risk of an off-brand or misaligned campaign running on your inventory. Free from the limitations of third-party vendors, you can also launch a customized ad platform without every setting mandated by a black-box provider; pick and choose only the features you need customized to your platform.
Bring Your Own Machine Learning
You know your customers best. Unlike ad tech partners who force you to rely on their own AI/ML, in-house retail media allows you to bring your own AI/ML model to your ad platform, meaning you can monetize your first-party data and offer the best targeting to customers without giving up control.
Improved Agility and Real-Time Optimization
An in-house team can respond to market changes faster, fine-tuning and optimizing campaigns in real time. Unlike external vendors, who can introduce delays or impose limitations, having in-house operations means you can make the most of your real-time data, staying ahead of the curve and ready to seize new opportunities.
Enhanced Integration with Business Operations
Bringing retail media operations in-house fosters better connection with other key areas of your business, like merchandising, marketing, and sales. You can be sure that your retail media strategies perfectly align with broader business objectives, keeping your branding and voice consistent across all channels. The result? A more unified customer experience.
Greater Transparency and Data Ownership
In-house retail media means retailers have total visibility into campaign performance and data usage which is the key to fine-tuning future campaigns. Additionally, keeping control over your first-party data provides valuable insights, while also boosting your brand’s competitive edge by safeguarding essential customer information within the company.
Long-Term Strategic Benefits
Building in-house develops and enhances internal expertise, allowing retailers to stay ahead in a fast-moving industry. It’s not just about keeping up, but leading the way. Plus, handling operations in-house also means that you don’t have to rely on external parties that might not fully align with your goals. It’s a strategic way to future-proof your retail media and be prepared for whatever changes come next.
Cost Efficiency
By cutting out third-party fees, in-house retail media can lead to significant cost savings. Managing media spend directly has the potential for more precise and efficient budget allocation, which can ultimately lead to better ROI.
Let’s make things even simpler: here’s a step-by-step guide to making the PromoteIQ transition.
Start by evaluating your current retail media setup. Identify challenges, opportunities, and the specific needs and goals of your business -- you should be able to define what you want to achieve and understand that setting clear objectives and timelines is crucial for a successful migration. After all, any gaps between your current solution and future solution leaves ad revenue on the table.
Once planning is complete, you can move on to the technical and operational aspects of the transition. You should choose a platform that can seamlessly integrate with your existing systems, ensuring a smooth shift to in-house operations. It’s also important to have a support team available to address any technical challenges and ensure everything runs efficiently.
Once your initial setup is complete you’re free to focus on continuously optimizing and scaling your retail media operations. With the right tools, you can regularly monitor performance and make data-driven adjustments, so you can stay flexible and responsive to fast-paced market changes.
In-housing retail media operations can seem like a daunting task, but with the right tools and support, it doesn’t have to be. Enter the Kevel Retail Media CloudTM, the top solution for retailers looking to bring their retail media operations in-house.
Kevel’s Retail Media Cloud™ powers retail media networks through flexible API offerings that enhance the shopper experience. With Kevel, there is no need to forfeit any control over your first-party data, and Kevel’s ad tech infrastructure has empowered multi-brand retailers to build, manage, and launch differentiated retail media networks in as little as 14 days.
“Being an API-based solution gave us the ability to evolve through time because retail media is in a very fluid context right now. Even from an ad server perspective, the ability to adapt to whatever formats and channels we want to launch in the future…that is definitely a plus. We wouldn’t be stuck with a solution that give[s] us little room for adaptation.”
- Carlos Paulo, Head of ENDLESS Retail Media Solutions
Learn more from a retailer who transitioned to in-house operations with Kevel by visiting our MC Sonae success story here.
PromoteIQ’s recent shutdown marks a significant shift, but also provides a valuable opportunity for retailers to reassess and enhance their retail media strategies. Kevel can provide you with the tools you need to in-house your retail media operations, eliminating third-party fees, allowing you to maintain data ownership, and better positioning your brand to stand out.
Ready for the next step? Get in touch today to explore how Kevel’s solutions can elevate your retail media strategy.
