E-commerce giant ASOS is facing “challenging trading conditions,” according to its CEO, prompting them to delve deeper into the growing trend of retail media. ASOS wasn’t the first to this strategy, launching their initial program in 2021. However, they recognised the potential before widespread adoption by other brands.
ASOS currently offers a suite of services to help brands leverage their massive customer base. This includes social media campaign support, targeted email marketing, and in-app push notifications. However, with increased competition from established players like Westfield and Boots launching their own networks, ASOS is looking to mature its offerings.
To achieve this, ASOS has partnered with Criteo, a leading adtech company. This collaboration will enhance ASOS’ retail media capabilities. Previously, ASOS Media Group’s (AMG) division directly managed relationships with only their top 150 brand partners. The goal now is to expand that network significantly, aiming to onboard an additional 200 brands. In the long term, ASOS envisions a platform that facilitates the needs of all 900 brands it partners with across its global markets.
This strategic move by ASOS reflects the growing importance of retail media within the e-commerce landscape. By leveraging their vast customer data and targeted advertising solutions, ASOS aims to create a win-win situation for themselves and their brand partners, all while navigating a challenging economic climate.
Source: ASOS
The Future of Fashion Ads: ASOS & Criteo’s Partnership
ASOS has joined forces with Criteo, a leader in commerce media, in a strategic three-year partnership. This partnership makes Criteo the exclusive ad-tech partner for endemic brands (fashion-focused brands) advertising on ASOS’s market-leading app and website.
This collaboration aims to supercharge Criteo’s powerful retail media technology to deliver enhanced advertising solutions.
This strategic three-year deal signifies a significant step for AMG as it seeks to:
Boost Advertising Revenue and Campaign Volume
Criteo’s industry-proven retail media solutions will empower AMG to scale its advertising operations, leading to an increase in both the number of campaigns managed and the overall advertising revenue generated.
Enhanced Targeting and Measurement
The partnership brings with it advanced targeting and measurement capabilities. This allows advertisers to reach their target audience with greater precision and gain deeper insights into campaign performance.
Seamless Integration with Existing Strategies
The new advertising solutions will seamlessly complement AMG's existing offerings, including creative development, social media marketing, targeted email campaigns, and app push notifications. This provides a holistic advertising experience for brands.
Dedicated Sales Support
Criteo will actively support AMG’s sales efforts, reaching out to fashion brands and agencies in key markets like the UK, U.S., France, and Germany. This initial focus will eventually expand to encompass all global territories where ASOS operates.
Source: Joshua Earle / Unsplash
Expanding ASOS’ Advertising Reach with Criteo
The ASOS and Criteo partnership goes beyond just in-platform management. Criteo will handle three distinct ad categories, providing a comprehensive advertising experience for fashion brands:
1. Sponsored Ads: Targeting Intent Within ASOS
Sponsored Ads allow brands to target users with laser focus. By placing intent-based ads directly within ASOS search results and product listing pages, Criteo connects brands with customers actively browsing for relevant items. This strategic placement puts brands in front of highly targeted audiences at a crucial decision-making moment, significantly increasing the chance of conversion. Sponsored Ads encompass a curated selection of roughly 70,000 products, featuring nearly 900 global and local third-party brands alongside ASOS' own fashion-forward labels.
2. On-Site Display Ads: Boosting Brand Awareness at Checkout
On-Site Display Ads leverage the high purchase intent of ASOS users. These ads strategically combine eye-catching branding with relevant product information, strategically positioned within the ASOS website and app, particularly near checkout. By utilising Criteo's advanced technology, brands can connect with highly relevant audiences at the point of sale, maximising brand awareness and product visibility just when it matters most. This strategic placement offers brands a valuable last-minute window to influence purchasing decisions.
3. Off-Site Ads: Reaching Customers Beyond ASOS
Off-Site Ads extend a brand's reach beyond the ASOS platform. Criteo's extensive network allows brands to retarget website visitors and broaden their audience across premium publisher websites and connected TV (CTV). This approach captures potential customers throughout their online journey, not just while they're browsing ASOS. By leveraging Criteo's vast network, brands can craft a more comprehensive marketing strategy that extends their reach and influence across diverse online channels.
In essence, the ASOS and Criteo partnership provides a powerful one-two-three punch for fashion brands. It allows them to target high-intent shoppers within ASOS, capitalise on purchase intent at the point of sale, and extend their reach beyond the platform, creating a more holistic and impactful advertising experience.
Source: Adobe Express
What Is ASOS’s Long-Term Vision?
“The ASOS vision is to become the global go-to destination for fashion-loving 20-somethings and we want to take brands on the journey with us, helping advertisers showcase their products through our fashion lens,” said Elton Ollerhead, Director of AMG in a statement. “Criteo’s technology is proven at scale and designed for retail, which opens up enormous opportunities for brand advertisers across our key markets.”
In the wake of a successful 2021, marked by strategic acquisitions like Topshop and Miss Selfridge and a US expansion via a joint venture with Nordstrom, fashion retailer ASOS is navigating a period of change. To address a recent decline in sales, ASOS launched its "Driving Change" transformation strategy in October 2022. This initiative aims to reverse the negative sales trend the company experienced during the last four months of 2022, a period that saw flat customer numbers at 25.5 million and a 3% dip in total revenue.
Criteo’s solutions will allow ASOS Media Group (AMG) to scale campaign volume and resulting advertising revenue, while complementing their existing rich advertising offering across creative solutions, social media, targeted email and app push notifications, said a press release. The partnership will offer advertisers improved targeting and measurement capabilities, driving greater performance and commerce outcomes including sales on ASOS.com. Criteo will also support AMG's sales efforts to brands and agencies in key markets.
Elton Ollerhead, Director of ASOS Media Group commented, “The ASOS vision is to become the go-to global destination for fashion-loving 20-somethings and we want to take brands on the journey with us, helping advertisers showcase their products through our fashion lens. Criteo's technology is proven at scale and designed for retail, which opens up enormous opportunities for brand advertisers across our key markets.”
Working with ASOS’s in-house media team selling to global brands, Criteo will drive demand among mid to long-tail brand targets. Criteo will also spur incremental agency demand through its client solutions teams across Europe and the US.
Sherry Smith, General Manager, Global Enterprise at Criteo commented, “ASOS is a market leader that gives its customers an exceptional shopping experience, which Criteo is excited to enhance with relevant and native advertising experiences. We look forward to building our partnership and delivering best-in-class commerce media solutions for ASOS brand partners.”
Source: LinkedIn
The initial deployment will take place across the UK, US, France and Germany, before expanding to all global territories ASOS operates in.
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