Best Buy launches in-house media company

Dive brief:

  • Electronics retailer Best Buy has launched an internal media company called Best Buy Ads with the aim of connecting brands and consumers, according to a press release.
  • In addition to consumer electronics brands, Best Buy Ads will serve non-endemic agencies and brands, and dedicated teams and capabilities have been brought together across the company as part of the offering, a spokesperson for the brand at Marketing Dive.
  • Best Buy interacts with its customers 3 billion times a year, depending on the version, a foundation that articulates its data-driven advertising offerings across various channels, including both internal and external. The offering comes as digital retail media advertising is expected to continue to grow in 2022 and also features a component that aims to address inclusion and diversity in advertising – another industry-wide priority .

Dive overview:

Best Buy’s launch of an in-house media company sees the electronics retailer formalizing its advertising offerings amid increasing advertising in retail media, which eMarketer says will grow 31.4% to $ 41.37 billion in 2022. The company claims it has 3 billion customer interactions per year, giving it a wealth of data and information that can be useful in connecting brands to consumers at various times. and places as they adapt to increasingly tech-driven lives, Keith Bryan, president of Best Buy Ads, media strategy and CRM, said in an emailed statement.

As part of the internal media business launch, Best Buy Ads will also launch an advertising-focused career path program to help address inclusion and diversity in the advertising industry, which is at 73 % white, according to labor market data cited by the company. The program seeks to create opportunities and a pipeline for diverse candidates seeking a career in advertising through internships, mentoring and paid experiences. The offering is part of Best Buy’s larger five-year plan to address under-representation and technological inequalities.

Best Buy Ads includes paid search, sponsored product listings on BestBuy.com, onsite and offsite display, onsite and offsite video, Facebook and Instagram, in-store video, and proximity messaging to reach Best Buy app users, ratings of the Best Buy Ads website. The company has invested in its long-standing advertising business to help suppliers reach its customers, CEO Corie Barry said on an earnings call in November 2021.

“Best Buy’s relevance, customer relationship and first-party data have grown along with customers’ technological needs and our ability to meet those needs. These are all great examples of the value we can deliver to our supplier partners that many other retailers cannot, ”said Barry.

Best Buy is the latest retailer to invest in a retail media offering, a space that has been growing for years but has grown amid growing privacy concerns over digital media. Lowe’s in October unveiled a retail media network providing omnichannel advertising and worked with CitrusAd and Criteo on the initiative. Likewise, advertisers can use Criteo’s platform to reach Best Buy website buyers in the United States and Canada.

Cathy W. Howerton