Video A

The reason why the media programs often times do not scale is that there is too much friction between the retail side of the business and the media side of the business. So how does this go? Well, those who run retail media sponsored products, they understand in order to make more money, we need more space for more inventory. So basically get those additional placements from the other side of the business and is responsible for personalization and delivering the user experience. Those people are incentivized by delivering the highest possible click-through rate and they know sponsored products don't work as well. So why would they give away something that goes at the expense of their own margin? So the one side cares about media revenue, the other side here about relevancy and click-through rates and they all fight and in the end they make no progress. As a result, the retail media business stays small and just doesn't grow. I just had a meeting with the company and they solved the problem in a very simple way. They said - there is a single target, both work for margin across the two businesses. They have shared OKRs. So all of a sudden, one of BI who is responsible previously was responsible for CTR, now, all of a sudden says - Well, I might be better off with sponsored products bringing in a ton of revenue, you have to make them relevant. And all of a sudden, there are two sides of the business that collaborate and this is where the magic happens. Sometimes it can be so simple.