Turning Loyalty Into Sales: Using Retailer Data to Power Paid Social

By Camilla Hay, Digital Account Manager

Retail media has rapidly evolved from a niche tactic into one of the most powerful levers in modern paid media planning. In the UK, advertiser spend on retail media is likely to exceed £4.8 billion in 2026, with at least 64% of marketers already working with at least one provider.

This article will delve into the considerations for incorporating retailer data into your paid social campaigns, as retailers offer brands the ability to reach high-intent shoppers, backed by rich first-party data and clear sales attribution . For marketers balancing brand building with performance, retail media bridges the gap by driving measurable outcomes while deepening retailer partnerships.

Using retailer data in advertising campaigns opens up a plethora of valuable targeting segments. Most importantly for brands, there is confidence that campaigns are targeting those who actually do shop where their products are stocked. The use of loyalty cards is very widely adopted, for example with 80% of Tesco shoppers using a Tesco Clubcard. We are able to tap into the data gathered when these shoppers scan their loyalty cards, with a wealth of potential segments to build out.

Let’s delve into some of the segments you can build within an advertising campaign when using retailer data on Meta:

Lapsed Purchasers – thanks to data from the likes of Nectar and Dunnhumby, advertisers can target those who previously purchased their products to bring them back to the brand – this is a great targeting solution in particular when there is new product development to shout about.
Competitor Brand Purchasers – this method of targeting gives advertisers the potential to steal market share from key competitors – whether going for the category as a whole or cherry-picking specific priority brands.
In Market – the data gives you the potential to target those who would be shopping in the relevant aisle in store – for example for a baby food brand you would be able to show ads to those who had recently purchased nappies and other relevant baby products.

Thanks to the ability to import loyalty card data segments to Meta , cookies are not needed to be used for tracking via this methodology. This is first-party data at its core, as retailers own this data, allowing for a wealth of targeting opportunities which are future proofed . This is more valuable than for example selecting a Tesco interest in the backend of a platform, as we are targeting based on real shopping habits as opposed to topic engagement.

Furthermore, closed-loop reporting shows the true return on investment. Tracking is essentially done by matching purchases back to those who were shown an ad, using the unique loyalty card number. This means that with digital media, you can not only track online transactions generated, but also those in store, giving complete data and allowing you to accurately measure the true impact of your campaigns.

The use of retailer data on paid social campaigns provides the perfect opportunity to capitalise further on an omnichannel strategy. Say you are utilising in-store digital out of home screens, adding paid social into the mix helps to build frequency to enhance the effectiveness of this strategy . An example of this would be a ready to drink brand advertising on screens inside Sainsbury’s in the run up to the peak Summer period, building consideration for their brand at this stage. In-category Nectar card holders could then be served a Meta ad to give them the nudge to make a purchase during the Summer sunshine. Also not to be underestimated, media investment with a retailer can strengthen trade partnerships, opening up more scope for exclusive opportunities.

The capabilities addressed above highlight the value of tapping into retailer data rather than relying solely on in-platform demographic and interest-based targeting. We have the data to back this up. This summer at The Kite Factory we ran a traditional Meta D2C campaign alongside a Tesco data D2C campaign for one of our FMCG clients. The uplift from the latter was undeniable, with a 3.5 higher ROI across the campaign period.

The capabilities addressed above highlight the value of tapping into retailer data rather than relying solely on in-platform demographic and interest-based targeting. At TKF, we have tried and tested solutions across retailer platforms, driving up to 3.5x higher ROI than standard Meta activations. Our experience in retailer buying can help elevate your D2C campaigns to the next level.

In summary, the integration of retailer data into paid social campaigns represents a powerful evolution in how brands can reach and convert shoppers. By leveraging loyalty card insights, advertisers gain access to future-proof targeting that directly connects media spend to both online and in-store sales. Beyond the measurable ROI, these campaigns enhance omnichannel strategies and reinforce retailer relationships, creating a win-win for both brand and trade partners. As the retail media landscape continues to expand, brands that embrace these opportunities will be best placed to capture incremental growth and stay ahead in an increasingly competitive market. At The Kite Factory, we have the expertise to support on retailer strategies, with a wealth of experience under our belts on brands such as White Claw and Little Freddie.

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