Patricia Grundmann, Vice President Media & Retail Media at OBI and Managing Director of the OBI First Media Group, delivered a captivating presentation at RETAIL NXT. Titled “From Shop Window to Search Engine: How Retailers, Customers, and Brands Benefit from Retail Media”, her talk provided deep insights into OBI’s evolution from a traditional retailer to an innovative publisher. More than just presenting impressive results, she sparked genuine fascination for retail media as the future of data-driven commerce.
From Shelf Space to Advertising Platform: A New View of OBI
Most people know OBI as a home improvement store, but as Patricia Grundmann emphasized, the company has become much more. Today, OBI sees itself as a “Home & Garden” platform – and, above all, as an enabler that helps customers shape their personal living spaces.
With 646 stores, 93% brand awareness across nine countries, and €8.2 billion in revenue in 2023, OBI has established a formidable reach. But it’s in the digital realm that the company is driving a true paradigm shift:
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Online Expansion: Over 30 million users visit OBI’s digital platforms every month.
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Unlimited Shelf Space: While a physical store can offer 50,000 products, the online range is continuously expanding – supported by partnerships with specialized vendors.
But the real game-changer lies in how OBI leverages its data and platforms to open up an entirely new business model: Retail Media.
What is Retail Media?
Retail media is the intersection of retail and advertising. It allows brands and advertisers to place their messages exactly where customers are actively searching for products – in direct context with their interests and needs.
OBI has mastered this discipline, offering its partners – from traditional home & garden brands like Kärcher or Gardena to insurers, energy companies, and automakers – a unique platform to reach highly relevant audiences.
Why is Retail Media So Effective?
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Higher Conversion Rates: Retail media delivers 30% higher conversion rates than traditional digital formats like display ads.
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Improved Ad Performance: Advertising in a retail media context is 3–5 times more effective than traditional campaigns.
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Contextual Relevance: Customers engaged in gardening, DIY, or home renovation are highly receptive to matching offers.
From Data to Insights: The Foundation of Success
The key to OBI’s retail media success lies in leveraging first-party data. Grundmann emphasized that this data – collected with user consent – enables precise targeting and highly effective campaigns.
The Power of First-Party Data
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Customer Segmentation: OBI knows its customers’ purchase history, interests, and preferences.
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Personalization: Targeted offers, like a robotic lawnmower for homeowners with 2,000 m² of garden, can be tailored to specific segments.
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Cookieless Future: While other channels struggle with the decline of third-party cookies, retail media is future-proof thanks to account-based data.
Insights in Action: The HeyOBI App
OBI’s HeyOBI app is more than a digital loyalty card. It serves as a central data source, enabling OBI to accompany customers along their entire journey:
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Historical Data: What did the customer buy in the past?
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Anticipated Needs: Based on house age or renovation plans, relevant suggestions are made.
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Interaction: Push reminders for plant care or DIY tips turn OBI into a trusted companion.
Use Case: Fiskars Campaign – Sharp Results through Precision Targeting
Grundmann presented a case study showcasing the effectiveness of retail media. The campaign for Fiskars cutting tools not only significantly boosted brand awareness but also increased sales of focus products by up to 116%.
What Made the Campaign So Successful?
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Geo-Targeting: Campaigns were tailored to urban vs. rural regions.
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Segmentation: Four segments – from “Urban Gardeners” to “Brand Lovers” – received custom messaging.
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Interactive Elements: Live poll ads and gamification created a unique brand experience.
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Data-Driven Design: Every touchpoint – from push notifications to landing pages – was built on customer data, resulting in exceptionally low bounce rates.
Retail Media as Strategic Transformation
Grundmann made it clear that retail media is more than just an additional advertising channel – it represents a strategic transformation for retailers. By integrating technology, data, and marketing, retail becomes a publisher, cleverly combining commerce and advertising.
Technology as the Foundation
Retail media demands a robust, scalable tech infrastructure that integrates both physical and digital channels. Since 2018, OBI has invested heavily in this transformation, setting benchmarks for the German market.
Long-Term Perspective
Grundmann emphasized that entering retail media is not a quick fix but a long-term commitment. However, early adopters stand to gain: the global retail media market is expected to reach $100 billion by 2027.
Conclusion: Retail Media – The Key to the Future of Commerce
Patricia Grundmann’s presentation offered a fascinating journey through the opportunities and potential of retail media. She demonstrated how OBI is unlocking new revenue streams through data-driven marketing while offering customers a more relevant shopping experience.
For retailers considering how to implement retail media, she gave a crucial piece of advice:
“Look inward. Understand your own customers and build a scalable model on that foundation.”
With this approach, one thing becomes clear: retail media isn’t just the future of commerce—it’s a cornerstone of the retail technology landscape. And OBI shows how to lead the way.
