What developments are happening at Rakuten to help brands and publishers outperform in 2024?
There are a couple of big focus areas for us as a business at the moment, and one of them is our Audience Engine. Now this really brings targeting into the affiliate space and I don’t think it's really existed before in the industry.
I remember distinctly having a conversation with a sort of disgruntled CMO about five or six years ago, and he was always talking frustratedly about affiliate and saying that the concern for him, was that if he looked at his other channels, such as the paid search and programmatic display etc., he can do some quite granular audience targeting through these channels. Although he loved the performance model of affiliate marketing, he really hated the fact that he couldn’t do any sort of granular targeting. Our industry-first Audience Engine brings that into the affiliate channel.
It allows publishers to monetise their own audiences and we know that third-party data is effectively disappearing or has disappeared due to browser changes. So, increasingly, advertisers are going to be looking at their publisher network, the publishers out there who have their own data, and how they can take advantage of that to find the right customer. Sometimes, particularly for luxury brands that we work with, it's finding a needle in a haystack and having targeting that allows you to take advantage of that audience data that our publishers have can really turbo charge and boost your affiliate programme.
The second thing, I don't want to sound like a cliche, but AI. We are going to see a big shift towards the use of AI in performance marketing over the next 12 to 18 months. The Rakuten business at a group level signed a strategic partnership with OpenAI, so we're looking at how we're bringing AI into our business. I think it's going to help brands and publishers. The first iterations are going to be very much about discovery, helping brands and publishers find each other better and more quickly to simplify things, and build those connections, which is ultimately what affiliate marketing is all about.
I know there are several sessions at PI LIVE next week talking about AI and where that can go, so I'm really excited to be going and to listen to some of that content, but also to talk to people about what we're doing at Rakuten Advertising there.
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