While this venture will offer more independence to retailers when it comes to brand creation and management, it should also prove to be a lucrative and forward-thinking move for Microsoft.
Five months after acquiring vendor marketing platform PromoteIQ, Microsoft has announced a new marketing scheme. Named Microsoft PromoteIQ, it’s a new self-service platform for retailers and brands.
“The platform will help retailers manage digital marketing campaigns from brands trying to promote products to shoppers”
With the platform, retailers can control the look and feel of on-site ad placements. They can also track campaigns to see if they’re beneficial to customers – and to see if they’re meeting brand goals.
As reported by Adweek, Retailers are also able to add their own data and personalisation, allowing paid placements to blend into their sites – allowing them to manage branding to a great degree.
What are Microsoft’s Goals?
Alex Sherman, the ex-CEO of PromoteIQ, who is now acting as business lead for Microsoft, said:
“The way we’re positioning ourselves in the space is as a platform retailers can build on—our goal is to empower retailers to build a large and [prosperous] media business”
According to Sherman, Microsoft PromoteIQ will be focusing on the global top 100 retailers, as these will be more responsive to in-house media offerings for brands:
“What we see across the retail universe … [is retailers] recognizing that ultimately they shouldn’t be just selling ads through a third-party network.”
Bigger retailers understand that the branding they have should reflect the relationship they have with shoppers – along with the experience they want to create.
Where has his model come from?
Big retailers are following Amazon’s lead. On this topic, senior director of Amazon Todd Bowman said:
“Amazon has started a trend where brands who have not traditionally had a DTC presence want more insights and control in selling their products through retailers.”
Retailers have now started entering the media space to satisfy their key brands. When these retailers launch their own media brands, they need help to do so, which is where Microsoft have decided to come in. Microsoft has spotted that retailers are looking to be in charge of their own brands – and are therefore allowing them the tools to do so.
Today 30 of the world’s 50 largest retailers are starting their own media programs:
“Retailers are taking control of this business. They are no longer content to outsource to a third party and be a means to someone else’s network.”
Microsoft PromoteIQ is connected to the Microsoft Advertising platform, which drives Ads on search engines including Bing, AOL and Yahoo.
For now, Sherman has noted that the focus is currently on online advertising. Offsite opportunities such as in-store advertising will be explored at an as-yet unconfirmed point in the future.
While this venture will offer more independence to retailers when it comes to brand creation and management, it should also prove to be a lucrative and forward-thinking move for Microsoft.