Constructor Launches Retail Media Suite as Home24 Expands Partnership for Personalized Advertising

Table of Contents

1. Key Highlights
2. Introduction
3. The Evolution of Retail Media
4. Constructor's Retail Media Suite: A Game Changer
5. Home24's Adoption of Sponsored Listings
6. The Bigger Picture: Retail Media on a Global Stage
7. Future Trends in Retail Media
8. FAQ

Key Highlights

• Constructor has unveiled its new Retail Media Suite aimed at enhancing advertising for e-commerce retailers.
• The suite includes Sponsored Listings, designed to serve personalized ads that complement organic search results.
• Home24, a European home and living e-commerce company, will be one of the first to implement this solution, allowing dynamic bidding for ad placements.
• The integration of this innovative platform promises to improve the user experience by ensuring relevant ads reach shoppers.

Introduction

In an era where online shopping has become essential, the importance of personalized marketing cannot be overstated. Did you know that 40% of consumers prefer personalized ads over generic ones? Shoppers are increasingly seeking tailored experiences that speak to their needs and preferences. Constructor, an AI-powered search and product discovery platform, has taken a significant step in this direction by launching its Retail Media Suite. This suite introduces Sponsored Listings designed to make digital advertising more relevant and compelling. The growing partnership with home24, a leading European home and living e-commerce company, highlights the practical application and benefits of this new technology.

The Evolution of Retail Media

Retail media has dramatically evolved over the years, with businesses striving to balance ad placements with user experience. Initially, online ads were often viewed as obtrusive, competing with organic search results and detracting from the shopping experience. Constructor aims to change this narrative by utilizing cutting-edge algorithms that enhance both sponsored listings and organic search results, creating a seamless shopping experience for consumers.

Historical Context

The rise of e-commerce over the past two decades has transformed how retailers reach consumers. Companies once relied solely on traditional advertising methods, but with the advent of technology, a new opportunity emerged: retail media. The concept, gaining traction in the last five years, involves placing targeted ads on retailers' websites that can effectively drive sales while enriching the shopper's journey. As this landscape evolves, more advanced solutions like Constructor’s Retail Media Suite are positioning themselves as vital tools for e-commerce success.

Constructor's Retail Media Suite: A Game Changer

Constructor's Retail Media Suite introduces innovative features that focus on enhancing ad relevance and improving the shopping experience.

Key Features

• Personalized Ads: The suite offers ads integrated into search results, browsing experiences, and product recommendations, ensuring that ads complement rather than detract from organic placements.
• Learning from Shopper Interactions: Ads adapt based on consumer behavior, evolving to better meet shopper preferences.
• Dynamic Bidding System: The technology automatically adjusts ad costs in real-time according to demand and product performance. For instance, if a consumer searches for "garden chairs," the ad placements will optimize based on the day's weather—if it's sunny, the ads for garden chairs may get prioritized.

Impact on User Experience

Eli Finkelshteyn, CEO of Constructor, emphasizes that retail media should not be an intrusive placement but rather an enhancement to the user journey. “Retail media isn’t just a billboard you can sell to the highest bidder,” he states. “The best retail media results are those a shopper is happy to see and wants to interact with.” This adaptive approach ensures that ads resonate with consumers, ultimately driving better Return on Advertising Spend (ROAS).

Home24's Adoption of Sponsored Listings

Home24, already utilizing Constructor’s platform for personalized search and browse experiences, views the integration of Sponsored Listings as a natural next step. Gianluca Randisi, Chief Product and Technology Officer at home24, describes the partnership as a "game-changer."

Benefits for Advertisers

The dynamic bidding system not only benefits consumers but also provides advertisers with a competitive edge. By allowing real-time adjustments based on performance, advertisers can maximize their investments without compromising organic visibility. For instance, the cost for top ad placements can increase or decrease based on various factors, such as seasonal demand or even daily weather trends.

Case Studies in Functionality

As an illustrative case study, consider a scenario where demand for outdoor furniture spikes during warmer weather. Constructor’s technology allows for swift adjustments in ad placements, ensuring advertisers can capitalize on peak interest while providing consumers with relevant suggestions.

The Bigger Picture: Retail Media on a Global Stage

The launch of the Retail Media Suite is a part of a larger narrative within the retail industry, one where innovation plays a crucial role in survival and success. With events like the 2025 RTIH Innovation Awards, which focuses on celebrating advancements in retail technology, there’s a growing acknowledgment of the significance of retail media.

Awards and Recognition

At these awards, retailers and tech innovators will showcase solutions that enhance operational efficiency and profitability across various platforms. Scott Thompson, Founder of RTIH, stated, “We’ve got all the cool stuff covered this evening,” highlighting innovations that prioritize user satisfaction—like Constructor’s Retail Media Suite.

Future Trends in Retail Media

As technology advances, several trends are shaping the future of retail media:

1. Increased Personalization: Retailers will continue to leverage AI and data analytics to provide even more tailored experiences.
2. Integration Across Platforms: The seamless integration of retail media campaigns across social, search, and e-commerce platforms will become standard.
3. Focus on User Experience: Balancing ad placements without overwhelming users will remain a priority for retailers aiming for long-term customer loyalty.

Looking Ahead

As e-commerce continues to evolve, the importance of adapting advertising strategies to meet consumer expectations will only grow. Constructor's new Retail Media Suite could set a benchmark in how retailers approach their marketing, combining advances in technology with a commitment to enhancing the overall shopping experience.

FAQ

What is Constructor's Retail Media Suite?

The Retail Media Suite is a new offering from Constructor that includes Sponsored Listings designed to improve ad relevance and enhance consumer shopping experiences.

How does Sponsored Listings work?

Sponsored Listings integrate personalized ads within existing search results and product recommendations, allowing for a seamless transition between organic and paid advertising.

Why is personalization important in retail media?

Personalized ads lead to higher engagement and conversion rates, as consumers tend to respond better to ads that resonate with their specific needs and preferences.

How does the dynamic bidding system benefit advertisers?

The dynamic bidding system enables advertisers to adjust ad costs in real-time based on demand and performance, ensuring optimal visibility without harming organic placements.

What are some future trends in retail media?

Future trends include increased personalization, integration of campaigns across various platforms, and a strong focus on improving user experience to enhance customer retention.

Is Constructor the only company implementing such technology?

No, while Constructor is a leader in this space, many companies are exploring similar technologies to enhance retail media effectiveness. The competitive landscape ensures continuous innovation in this field.

How can a retailer benefit from this new Retail Media Suite?

Retailers using Constructor’s suite can expect improved engagement with users through relevant ads, potentially increased revenue through better ad performance, and overall enhanced user experience leading to higher customer satisfaction and loyalty.