Dave Raggio of Intuit SMB MediaLabs articulates to The Drum the imminent transformation of B2B into a prime battleground within the realm of commerce media.
The narrative surrounding commerce media has predominantly adhered to B2C paradigms—featuring retail behemoths, consumer-centric brands, and extravagant campaigns targeting individual households. However, this landscape is undergoing a significant metamorphosis.
A formidable player is emerging: small businesses. This sector remains under the radar for many marketers, despite its considerable size. Raggio, the vice-president of Intuit SMB MediaLabs, elaborated on this landscape during the IAB Connected Commerce Summit in New York, where he participated in a panel discussion hosted by The Drum.
The Ascendance of B2B
Historically, B2B marketing has been relegated to trade journals, white papers, and unremarkable hotel conference rooms. Yet, a seismic shift is underway. “This year, we observed two or three Super Bowl advertisements targeting SMBs directly,” Raggio remarked, a transformation unimaginable just a few years prior.
This trend is also apparent on the Bart line in San Francisco, where nearly monthly station takeovers by SaaS and fintech firms aimed at small businesses are becoming common.
Such attention is hardly surprising. Small enterprises constitute 99% of all companies in the United States, contributing over 51% to the GDP. Collectively, they generate approximately $6 trillion in revenue and employ nearly half of the U.S. workforce.
In other words, if small businesses were considered a nation, they would rank as the world’s third-largest economy.
Despite their substantial economic influence, small businesses have often been overlooked by mainstream marketers. Raggio illustrates this point: “They tend to linger in obscurity. Scalable first-party data sources that directly engage business owners or decision-makers are scarce.”
Introducing Intuit SMB MediaLabs
This void is precisely what Intuit seeks to address. Through SMB MediaLabs, Intuit is transforming the unparalleled data fidelity of QuickBooks into a media solution, enabling brands to connect with small business owners far more effectively than traditional third-party datasets.
The promise here is both scale and precision. Raggio characterizes Intuit’s function as a “horizontal layer,” neutral to the bank or payment system utilized by a business, capable of integrating disparate datasets into a coherent resource for advertisers.
“What’s advantageous about a provider like us,” he noted, “is that you do not need to navigate numerous individual components. We serve as a nexus where all these elements converge.”
The outcomes are compelling. In a campaign for a leading telecom brand, SMB MediaLabs documented a 22-point increase in purchase consideration—an impressive 11 times the industry standard.
Exploring the CPG Potential
An exciting opportunity lies not just within software or finance, but in the consumer packaged goods arena. For CPGs, selling directly to consumers often yields slim margins. The logistical challenges of shipping a $5 bottle of cleaning fluid, wrapped in costly protective packaging for what is essentially water, render it a losing strategy. In contrast, supplying five-gallon concentrates to small businesses presents a lucrative alternative.
Speculating the Future Frontier
Intriguingly, QuickBooks serves as a backbone for millions of small enterprises. Currently, that data enables larger brands to target SMBs. However, consider a scenario in which commerce media flows in reverse.
What if QuickBooks users themselves were able to market via Intuit’s platform—to connect with new suppliers, partners, or even consumers?
While Raggio refrains from commenting on this potentiality, deeming it premature for public discussion, it undeniably seems a logical evolution—one that could democratize access to media tools for the businesses that are pivotal to our economic framework.
The Mailchimp Dimension
Intuit’s acquisition of Mailchimp for $12 billion adds another layer of complexity to this narrative. Once fully integrated, Mailchimp could furnish a complementary, robust dataset, offering advertisers deeper insights into SMB customer journeys and behaviors.
At present, QuickBooks remains the foundational engine. Nevertheless, the integration with Mailchimp signifies a future wherein CRM and accounting intelligence converge into an extraordinary advertising offering.
Challenges on the Horizon
While the prospects are substantial, formidable challenges exist. Raggio cautions that commerce media is fragmenting into “mini walled gardens,” with giants like Amazon, Walmart, and Target each constructing their own ecosystems. Implementing expansive campaigns across these platforms is becoming increasingly intricate.
For Intuit, carving out a unique identity lies in specialization. “No one has an SMB-specific initiative,” Raggio stated. “In an environment of uniformity, that allows us to differentiate ourselves.”
Moreover, privacy remains paramount. With customers entrusting Intuit with their most sensitive data through QuickBooks and Mailchimp, Raggio asserts that the company adopts an exceptionally transparent stance: “If that customer withdraws their trust, their data ceases, and consequently, so does our product. It is in our best interest to ensure that our customers are engaged in this journey.”
The Warning of SMB FOMO
A final point merits attention. At a prior conference, Raggio introduced the term SMB FOMO. “If you lack a strategy for SMBs, your competitors either currently possess one or are actively developing it.” Given that half of the U.S. economy is at stake, brands can no longer afford to dismiss this audience.
B2B has transitioned from the realm of niche markets. It graces Super Bowl broadcasts, adorns subway walls, and, with platforms such as Intuit SMB MediaLabs, is poised to become one of the most fiercely contested arenas in commerce media.
Source link: Thedrum.com.
