THG Ingenuity said it is expanding into commerce media “to create new opportunities for its retail and brand partners in the UK market.”
The firm, which sells a multitude of top global beauty and wellness brands, hopes that the move “will unlock commerce media opportunities, monetise first party data, and accelerate performance media.”
According to the company, commerce media, the advertising that connects shoppers with products and services across physical and digital touchpoints, is a more comprehensive approach than retail media. Traditional retail media relies on first-party data from a single retailer’s website - whereas commerce media is fuelled by shopper data from multiple retailers.
Retail media spend “predicted to increase 42% by 2051″
CEO of THG Ingenuity Richard Ward said that retail media spend is predicted to increase 42% by 2051, driven by advancements in AI and evolving ad formats.
“We’re pleased to bolster our retail media offering through this partnership as we continue to remove the complexity of direct-to-consumer to accelerate profitable, long-term growth for brands,” he said.
The three-year partnership builds on an existing relationship, as Criteo’s solutions are already behind THG Beauty retailers’ onsite and offsite retail media propositions.
The firm said that this business model has “achieved rapid growth.”
It claimed that its Lookfantastic UK business achieved YoY revenue growth of +115%, while its Cult Beauty UK business saw +108% YoY growth.
THG Ingenuity said it expects that the partnership will help its clients “drive revenue, increase customer acquisition and retention, and monetise first-party data,” which means that it will use data such as demographics and purchase history to provide targeted advertising throughout the funnel.
